Hsbc Holdings PLC Makes New Investment in Zions Bancorporation, N.A. $ZION

Key Points

• HSBC Holdings PLC initiated a position in Zions Bancorporation during the second quarter, purchasing 46,371 shares valued at approximately $3.21 million. Institutional investors collectively own 76.84% of the bank.
• Zions reported stronger-than-expected quarterly results, with EPS of $1.74 versus the $1.57 consensus estimate and revenue of $1.14 billion, up 35.7% year over year. The company also raised its quarterly dividend to $0.48 per share and authorized a $225 million stock-repurchase program.
• Analyst sentiment remains mixed: six analysts rate the stock a Buy, 12 recommend Hold and two rate it Sell, producing an overall “Hold” consensus and an average price target of $71.29 versus the reported share price of $67.78.

Hsbc Holdings PLC bought a new stake in shares of Zions Bancorporation, N.A. (NASDAQ:ZION - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 46,371 shares of the bank's stock, valued at approximately $3,209,000.

Other institutional investors have also recently made changes to their positions in the company. Bessemer Group Inc. increased its stake in Zions Bancorporation, N.A. by 5.2% during the first quarter. Bessemer Group Inc. now owns 3,159 shares of the bank's stock worth $182,000 after acquiring an additional 157 shares during the last quarter. Michels Family Financial LLC lifted its stake in shares of Zions Bancorporation, N.A. by 1.5% in the 4th quarter. Michels Family Financial LLC now owns 12,142 shares of the bank's stock valued at $711,000 after purchasing an additional 185 shares during the last quarter. C M Bidwell & Associates Ltd. lifted its stake in shares of Zions Bancorporation, N.A. by 13.5% in the 4th quarter. C M Bidwell & Associates Ltd. now owns 1,555 shares of the bank's stock valued at $91,000 after purchasing an additional 185 shares during the last quarter. Alta Capital Management LLC boosted its holdings in shares of Zions Bancorporation, N.A. by 0.7% in the 4th quarter. Alta Capital Management LLC now owns 27,838 shares of the bank's stock worth $1,630,000 after purchasing an additional 203 shares during the period. Finally, Modern Wealth Management LLC increased its position in shares of Zions Bancorporation, N.A. by 4.7% during the 1st quarter. Modern Wealth Management LLC now owns 4,670 shares of the bank's stock valued at $272,000 after purchasing an additional 209 shares during the last quarter. Institutional investors own 76.84% of the company's stock.

Zions Bancorporation, N.A. Stock Down 0.2%

Shares of ZION opened at $67.78 on Friday. The firm has a market capitalization of $9.89 billion, a P/E ratio of 8.63, a P/E/G ratio of 1.61 and a beta of 0.81. Zions Bancorporation, N.A. has a 12-month low of $46.19 and a 12-month high of $73.34. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.26. The firm has a fifty day moving average price of $69.87 and a 200-day moving average price of $63.83.

Zions Bancorporation, N.A. (NASDAQ:ZION - Get Free Report) last posted its quarterly earnings results on Monday, July 20th. The bank reported $1.74 EPS for the quarter, topping the consensus estimate of $1.57 by $0.17. Zions Bancorporation, N.A. had a net margin of 23.92% and a return on equity of 13.72%. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $877.44 million. During the same quarter last year, the firm posted $1.63 EPS. The firm's revenue was up 35.7% compared to the same quarter last year. Equities research analysts expect that Zions Bancorporation, N.A. will post 6.6 earnings per share for the current year.

Zions Bancorporation, N.A. Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 13th were paid a dividend of $0.48 per share. This is a boost from Zions Bancorporation, N.A.'s previous quarterly dividend of $0.45. This represents a $1.92 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Thursday, August 13th. Zions Bancorporation, N.A.'s payout ratio is presently 24.46%.

Zions Bancorporation, N.A. announced that its board has authorized a stock repurchase plan on Saturday, May 2nd that permits the company to repurchase $225.00 million in shares. This repurchase authorization permits the bank to repurchase up to 2.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Morgan Stanley increased their price target on Zions Bancorporation, N.A. from $68.00 to $77.00 and gave the company an "overweight" rating in a report on Monday, June 29th. DA Davidson boosted their price objective on shares of Zions Bancorporation, N.A. from $82.00 to $84.00 and gave the company a "buy" rating in a research report on Tuesday, July 21st. Cantor Fitzgerald increased their target price on shares of Zions Bancorporation, N.A. from $69.00 to $80.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. JPMorgan Chase & Co. cut shares of Zions Bancorporation, N.A. from a "neutral" rating to an "underweight" rating and set a $75.00 price target for the company. in a research note on Tuesday, July 21st. Finally, Stephens reduced their price objective on shares of Zions Bancorporation, N.A. from $82.00 to $80.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 21st. Six investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Zions Bancorporation, N.A. currently has an average rating of "Hold" and a consensus price target of $71.29.

Insider Activity

In related news, EVP Derek Steward sold 894 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $69.65, for a total value of $62,267.10. Following the completion of the sale, the executive vice president owned 17,449 shares in the company, valued at approximately $1,215,322.85. The trade was a 4.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Scott A. Law sold 4,608 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.42, for a total value of $333,711.36. Following the completion of the transaction, the executive vice president directly owned 32,890 shares in the company, valued at approximately $2,381,893.80. This trade represents a 12.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 88,787 shares of company stock valued at $6,283,858. Corporate insiders own 1.43% of the company's stock.

Zions Bancorporation, N.A. Company Profile

Zions Bancorporation, N.A. is a bank holding company headquartered in Salt Lake City, Utah, offering a full suite of banking and financial services to individuals, businesses and institutions. Through its primary subsidiary, Zions Bank, the company provides commercial banking, retail banking and wealth management solutions designed to serve the needs of small businesses, middle‐market firms and high‐net‐worth clients. Its service portfolio includes deposit accounts, cash‐management tools, lending products, mortgage origination, treasury services and investment advisory services.

The company's commercial banking segment delivers custom credit and treasury management services, including working capital lines of credit, equipment financing and international trade finance.

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