Hsbc Holdings PLC Acquires 90,234 Shares of United Community Banks, Inc. $UCB

Key Points

• HSBC Holdings PLC sharply increased its stake in United Community Banks, buying 90,234 additional shares in the first quarter and lifting its holdings to 114,896 shares worth about $3.6 million.
• United Community Banks reported mixed results for its latest quarter, missing EPS estimates with earnings of $0.71 per share versus the $0.80 consensus, though it posted $279.28 million in revenue and remains profitable with a 24.43% net margin.
• The bank continues to pay a dividend and has mostly constructive analyst sentiment, with a quarterly dividend of $0.25 per share yielding 2.8% and a consensus rating of “Moderate Buy” with a $38.80 price target.

Hsbc Holdings PLC lifted its holdings in shares of United Community Banks, Inc. (NYSE:UCB - Free Report) by 365.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 114,896 shares of the company's stock after buying an additional 90,234 shares during the quarter. Hsbc Holdings PLC owned about 0.10% of United Community Banks worth $3,615,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of UCB. Ruffer LLP bought a new position in United Community Banks in the fourth quarter valued at approximately $3,053,000. Horizon Investments LLC acquired a new stake in United Community Banks during the 4th quarter worth $1,153,000. GSA Capital Partners LLP bought a new stake in shares of United Community Banks during the 4th quarter valued at $1,941,000. SG Americas Securities LLC raised its position in shares of United Community Banks by 163.9% during the 4th quarter. SG Americas Securities LLC now owns 56,243 shares of the company's stock valued at $1,756,000 after acquiring an additional 34,932 shares during the last quarter. Finally, Diversified Trust Co. acquired a new position in shares of United Community Banks in the 4th quarter valued at $794,000. 82.29% of the stock is owned by institutional investors.

United Community Banks Trading Up 0.9%

UCB opened at $35.19 on Friday. The firm's fifty day moving average is $34.26 and its two-hundred day moving average is $33.49. The firm has a market cap of $4.21 billion, a PE ratio of 11.58 and a beta of 0.81. United Community Banks, Inc. has a twelve month low of $28.65 and a twelve month high of $37.18. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.82 and a current ratio of 0.83.

United Community Banks (NYSE:UCB - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The company reported $0.71 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by ($0.09). United Community Banks had a net margin of 24.43% and a return on equity of 9.61%. The firm had revenue of $279.28 million during the quarter. Equities research analysts anticipate that United Community Banks, Inc. will post 2.93 EPS for the current year.

United Community Banks Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 3rd. Shareholders of record on Monday, June 15th were issued a dividend of $0.25 per share. The ex-dividend date was Monday, June 15th. This represents a $1.00 annualized dividend and a yield of 2.8%. United Community Banks's payout ratio is currently 32.89%.

Insiders Place Their Bets

In other United Community Banks news, EVP Richard Bradshaw sold 1,510 shares of the business's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $33.09, for a total value of $49,965.90. Following the completion of the transaction, the executive vice president directly owned 84,497 shares of the company's stock, valued at approximately $2,796,005.73. The trade was a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.45% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Weiss Ratings upgraded United Community Banks from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, June 30th. TD Cowen upgraded United Community Banks to a "strong-buy" rating in a report on Thursday, July 16th. Hovde Group cut their target price on United Community Banks from $38.00 to $37.00 and set a "market perform" rating on the stock in a research note on Monday, April 27th. Wall Street Zen cut United Community Banks from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Finally, Stephens boosted their target price on United Community Banks from $39.00 to $40.00 and gave the stock an "overweight" rating in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $38.80.

About United Community Banks

United Community Banks, Inc NYSE: UCB is a bank holding company headquartered in Blairsville, Georgia. It operates primarily through its subsidiary, United Community Bank, providing a broad range of banking and financial services to individual, business and governmental customers. The company's core offerings include deposit accounts, commercial and consumer lending, mortgage origination, treasury and cash management services, and wealth management.

In addition to traditional banking products such as checking, savings and money market accounts, United Community Bank specializes in commercial real estate financing, small business administration (SBA) loans, equipment financing and agricultural lending.

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