Hsbc Holdings PLC Sells 24,618 Shares of BankUnited, Inc. $BKU

Key Points

• HSBC Holdings reduced its BankUnited stake by 59.8%, selling 24,618 shares and retaining 16,518 shares worth approximately $745,000. Institutional investors collectively own 99.7% of BKU.
• BankUnited’s latest quarterly results fell slightly short of expectations, with EPS of $0.97 versus the $1.00 consensus and revenue of $284.6 million versus $290.3 million expected. Revenue nevertheless increased 3.9% year over year.
• The company declared a quarterly dividend of $0.33 per share, equivalent to a 2.9% yield, while analysts maintain an overall “Hold” rating with a consensus price target of $52.00.

Hsbc Holdings PLC trimmed its stake in shares of BankUnited, Inc. (NYSE:BKU - Free Report) by 59.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 16,518 shares of the financial services provider's stock after selling 24,618 shares during the quarter. Hsbc Holdings PLC's holdings in BankUnited were worth $745,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also added to or reduced their stakes in BKU. Strs Ohio bought a new position in shares of BankUnited in the 1st quarter valued at $28,000. Eurizon Capital SGR S.p.A. acquired a new position in BankUnited in the 4th quarter worth about $30,000. Kestra Advisory Services LLC bought a new position in BankUnited in the fourth quarter valued at about $35,000. Quarry LP boosted its stake in shares of BankUnited by 158.2% during the third quarter. Quarry LP now owns 940 shares of the financial services provider's stock valued at $36,000 after purchasing an additional 576 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of BankUnited by 141.9% during the second quarter. EverSource Wealth Advisors LLC now owns 1,531 shares of the financial services provider's stock valued at $54,000 after purchasing an additional 898 shares in the last quarter. Institutional investors own 99.70% of the company's stock.

BankUnited Stock Performance

Shares of BKU stock opened at $46.10 on Friday. The company has a market cap of $3.35 billion, a price-to-earnings ratio of 12.63 and a beta of 1.17. BankUnited, Inc. has a 52 week low of $34.79 and a 52 week high of $52.11. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.54. The firm has a 50 day moving average of $47.71 and a 200-day moving average of $47.08.

BankUnited (NYSE:BKU - Get Free Report) last released its earnings results on Wednesday, July 22nd. The financial services provider reported $0.97 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.00 by ($0.03). The company had revenue of $284.57 million for the quarter, compared to analyst estimates of $290.33 million. BankUnited had a net margin of 14.76% and a return on equity of 9.13%. The firm's revenue was up 3.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.91 EPS. On average, equities analysts forecast that BankUnited, Inc. will post 4.09 earnings per share for the current year.

BankUnited Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, July 10th will be issued a dividend of $0.33 per share. The ex-dividend date is Friday, July 10th. This represents a $1.32 annualized dividend and a dividend yield of 2.9%. BankUnited's dividend payout ratio is currently 36.16%.

Insider Activity

In related news, Director John N. Digiacomo sold 1,000 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $45.97, for a total value of $45,970.00. Following the completion of the sale, the director directly owned 15,027 shares of the company's stock, valued at $690,791.19. The trade was a 6.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jay D. Richards sold 4,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $48.67, for a total value of $194,680.00. Following the transaction, the insider directly owned 40,502 shares in the company, valued at approximately $1,971,232.34. This trade represents a 8.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.00% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research analysts have recently issued reports on BKU shares. Keefe, Bruyette & Woods lowered their price objective on BankUnited from $55.00 to $50.00 and set a "market perform" rating for the company in a research note on Thursday, April 23rd. Zacks Research downgraded shares of BankUnited from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 21st. Hovde Group decreased their price target on shares of BankUnited from $55.00 to $53.00 and set an "outperform" rating for the company in a research report on Monday. Royal Bank Of Canada decreased their price target on shares of BankUnited from $53.00 to $50.00 and set a "sector perform" rating for the company in a research report on Thursday, July 23rd. Finally, Barclays cut their price target on shares of BankUnited from $52.00 to $50.00 and set an "equal weight" rating on the stock in a report on Thursday, July 23rd. Seven investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $52.00.

About BankUnited

BankUnited, Inc is a bank holding company based in Miami Lakes, Florida, operating through its subsidiary BankUnited, National Association. The company provides a broad range of commercial banking products and services, including deposit accounts, commercial lending and treasury management. It serves middle-market and small-business clients, offering tailored financing solutions across a variety of industry sectors.

The bank's lending portfolio includes commercial and industrial loans, commercial real estate loans and construction financing, as well as residential mortgage lending.

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