Vanguard Group Inc. Grows Stock Holdings in United Community Banks, Inc. $UCB

Key Points

• Vanguard Group Inc. has increased its stake in United Community Banks, Inc. to approximately 12.00%, owning over 14 million shares worth around $403 million after purchasing an additional 404,866 shares.
• United Community Banks recently announced a quarterly dividend increase to $0.25 per share, reflecting a dividend yield of 3.2% and a payout ratio of 43.64%.
• The company's quarterly earnings report showed an earnings per share of $0.66, surpassing analyst expectations by $0.05, with a revenue increase of 6.1% year-over-year.

Vanguard Group Inc. boosted its holdings in United Community Banks, Inc. (NASDAQ:UCB - Free Report) by 2.9% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 14,336,816 shares of the company's stock after buying an additional 404,866 shares during the quarter. Vanguard Group Inc. owned approximately 12.00% of United Community Banks worth $403,295,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of UCB. Dimensional Fund Advisors LP purchased a new position in United Community Banks in the fourth quarter valued at $195,766,000. Capital Research Global Investors purchased a new position in United Community Banks in the fourth quarter valued at $148,763,000. Earnest Partners LLC purchased a new position in United Community Banks in the fourth quarter valued at $113,536,000. Snyder Capital Management L P purchased a new position in United Community Banks in the fourth quarter valued at $61,663,000. Finally, Northern Trust Corp purchased a new position in United Community Banks in the fourth quarter valued at $45,527,000. Hedge funds and other institutional investors own 82.29% of the company's stock.

United Community Banks Stock Performance

Shares of UCB stock traded down $0.0050 during mid-day trading on Wednesday, hitting $31.2350. 395,956 shares of the stock were exchanged, compared to its average volume of 715,339. The stock's fifty day simple moving average is $30.43 and its two-hundred day simple moving average is $29.43. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of 15.31 and a beta of 0.83. United Community Banks, Inc. has a 12-month low of $22.93 and a 12-month high of $35.38. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.78 and a current ratio of 0.78.

United Community Banks (NASDAQ:UCB - Get Free Report) last released its quarterly earnings results on Wednesday, July 23rd. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.05. United Community Banks had a return on equity of 8.64% and a net margin of 16.48%.The company's revenue was up 6.1% compared to the same quarter last year. On average, analysts forecast that United Community Banks, Inc. will post 2.52 EPS for the current year.

United Community Banks Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 3rd. Investors of record on Monday, September 15th will be issued a dividend of $0.25 per share. This is an increase from United Community Banks's previous quarterly dividend of $0.24. This represents a $1.00 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date of this dividend is Monday, September 15th. United Community Banks's dividend payout ratio is 45.45%.

Insider Activity

In related news, EVP Richard Bradshaw sold 1,616 shares of the firm's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $30.94, for a total transaction of $49,999.04. Following the transaction, the executive vice president owned 78,395 shares of the company's stock, valued at $2,425,541.30. This trade represents a 2.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.54% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on UCB. Raymond James Financial reissued a "market perform" rating on shares of United Community Banks in a report on Tuesday, July 8th. Stephens reissued an "overweight" rating and issued a $36.00 target price on shares of United Community Banks in a report on Wednesday, April 23rd. Keefe, Bruyette & Woods increased their target price on United Community Banks from $32.00 to $34.00 and gave the company a "market perform" rating in a report on Monday, July 28th. DA Davidson raised their price objective on United Community Banks from $34.00 to $36.00 and gave the stock a "buy" rating in a report on Thursday, July 24th. Finally, Hovde Group raised their price objective on United Community Banks from $35.00 to $36.00 and gave the stock an "outperform" rating in a report on Thursday, July 24th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $34.57.

United Community Banks Profile

United Community Banks, Inc operates as the financial holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors. It accepts various deposit products, including checking, savings, money market, and other deposit accounts.