United Community Banks (NYSE:UCB) Hits New 52-Week High - Still a Buy?

Key Points

• United Community Banks shares reached a new 52-week high of $37.24, rising 3.7% and giving the company a market capitalization of approximately $4.48 billion.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $40. Recent upgrades raised targets to $42, while the company’s latest quarterly earnings matched expectations at $0.77 per share.
• The bank increased its quarterly dividend to $0.26 per share, implying a 2.8% annual yield. Institutional investors own 82.29% of the stock, although two company executives recently sold shares.

Shares of United Community Banks, Inc. (NYSE:UCB - Get Free Report) hit a new 52-week high during trading on Thursday. The company traded as high as $37.24 and last traded at $37.1780, with a volume of 1,760,208 shares trading hands. The stock had previously closed at $35.85.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Stephens lifted their price objective on shares of United Community Banks from $41.00 to $42.00 and gave the company an "overweight" rating in a research report on Wednesday. Weiss Ratings reiterated a "buy (b)" rating on shares of United Community Banks in a research note on Friday, September 25th. DA Davidson lifted their price target on United Community Banks from $40.00 to $42.00 and gave the stock a "buy" rating in a report on Wednesday, September 9th. Wall Street Zen upgraded United Community Banks from a "sell" rating to a "hold" rating in a report on Saturday, September 12th. Finally, TD Cowen raised United Community Banks to a "strong-buy" rating in a research report on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $40.00.

United Community Banks Trading Up 3.7%

The company has a market cap of $4.48 billion, a price-to-earnings ratio of 31.51 and a beta of 0.88. The business's 50 day moving average price is $34.73 and its 200-day moving average price is $34.36. The company has a current ratio of 0.78, a quick ratio of 0.83 and a debt-to-equity ratio of 0.01.

United Community Banks (NYSE:UCB - Get Free Report) last posted its earnings results on Tuesday, October 20th. The company reported $0.77 EPS for the quarter, meeting the consensus estimate of $0.77. United Community Banks had a return on equity of 9.66% and a net margin of 9.06%. The company had revenue of $291.90 million for the quarter. On average, equities analysts anticipate that United Community Banks, Inc. will post 2.99 EPS for the current fiscal year.

United Community Banks Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, October 5th. Shareholders of record on Tuesday, September 15th were given a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Tuesday, September 15th. This is a boost from United Community Banks's previous quarterly dividend of $0.25. United Community Banks's dividend payout ratio (DPR) is currently 88.14%.

Insider Buying and Selling

In other United Community Banks news, EVP Jefferson Harralson sold 25,000 shares of the firm's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $35.41, for a total transaction of $885,250.00. Following the transaction, the executive vice president owned 37,433 shares in the company, valued at $1,325,502.53. This trade represents a 40.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Richard Bradshaw sold 1,424 shares of the company's stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $35.09, for a total transaction of $49,968.16. Following the sale, the executive vice president directly owned 83,228 shares of the company's stock, valued at $2,920,470.52. This represents a 1.68% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.45% of the company's stock.

Hedge Funds Weigh In On United Community Banks

Several hedge funds and other institutional investors have recently made changes to their positions in UCB. Bank of New York Mellon Corp bought a new position in United Community Banks in the second quarter valued at approximately $55,195,000. Principal Financial Group Inc. raised its position in United Community Banks by 32.3% during the first quarter. Principal Financial Group Inc. now owns 766,598 shares of the company's stock valued at $24,140,000 after purchasing an additional 187,210 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in United Community Banks by 2.9% during the first quarter. Dimensional Fund Advisors LP now owns 6,520,132 shares of the company's stock worth $205,315,000 after purchasing an additional 182,397 shares during the last quarter. Bank of America Corp DE lifted its stake in United Community Banks by 27.6% during the first quarter. Bank of America Corp DE now owns 747,576 shares of the company's stock worth $23,541,000 after purchasing an additional 161,848 shares during the last quarter. Finally, Great Lakes Advisors LLC acquired a new stake in shares of United Community Banks in the 2nd quarter valued at $3,698,000. 82.29% of the stock is currently owned by institutional investors and hedge funds.

United Community Banks Company Profile

United Community Banks, Inc is a bank holding company headquartered in Blairsville, Georgia. Through its principal subsidiary, United Community Bank, the company provides banking and financial services to consumers, businesses and communities primarily across the Southeastern United States.

United Community Bank offers deposit accounts, consumer and commercial lending, residential mortgages, credit cards, online and mobile banking, treasury management and other financial services. Its lending activities include commercial real estate, business, construction, residential and consumer loans.

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