Stephens Issues Positive Forecast for Cullen/Frost Bankers (NYSE:CFR) Stock Price

Key Points

• Stephens raised Cullen/Frost Bankers’ price target from $169 to $183 and maintained an “overweight” rating, implying 9.55% upside from the prior close.
• Cullen/Frost exceeded quarterly expectations, reporting $2.70 in EPS versus the $2.55 consensus and revenue of $608.65 million versus $589.72 million expected.
• Despite positive analyst actions and strong results, the broader analyst consensus remains “Hold,” with a $155.25 target price; shares closed at $167.04, near their 52-week high.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) had its target price hoisted by equities researchers at Stephens from $169.00 to $183.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the bank's stock. Stephens' price target indicates a potential upside of 9.55% from the stock's previous close.

Other equities research analysts also recently issued reports about the stock. Citigroup raised their target price on shares of Cullen/Frost Bankers from $131.00 to $145.00 and gave the company a "sell" rating in a research note on Tuesday, June 30th. Weiss Ratings reissued a "buy (b)" rating on shares of Cullen/Frost Bankers in a research report on Wednesday, July 15th. Keefe, Bruyette & Woods upped their price objective on Cullen/Frost Bankers from $165.00 to $175.00 and gave the company an "outperform" rating in a research note on Friday. Morgan Stanley raised their price objective on Cullen/Frost Bankers from $133.00 to $141.00 and gave the company an "underweight" rating in a research report on Monday, June 29th. Finally, DA Davidson lifted their target price on Cullen/Frost Bankers from $143.00 to $144.00 and gave the stock a "neutral" rating in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $155.25.

Cullen/Frost Bankers Stock Performance

NYSE CFR traded up $3.55 on Friday, hitting $167.04. 178,805 shares of the stock were exchanged, compared to its average volume of 570,771. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.65 and a quick ratio of 0.65. The business's fifty day moving average is $150.97 and its 200 day moving average is $143.46. Cullen/Frost Bankers has a 52 week low of $119.00 and a 52 week high of $169.09. The company has a market capitalization of $10.49 billion, a PE ratio of 16.27, a P/E/G ratio of 2.98 and a beta of 0.54.

Cullen/Frost Bankers (NYSE:CFR - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The bank reported $2.70 EPS for the quarter, beating analysts' consensus estimates of $2.55 by $0.15. Cullen/Frost Bankers had a net margin of 22.86% and a return on equity of 15.58%. The firm had revenue of $608.65 million during the quarter, compared to analysts' expectations of $589.72 million. During the same quarter last year, the company posted $2.39 earnings per share. Research analysts anticipate that Cullen/Frost Bankers will post 10.57 EPS for the current fiscal year.

Insider Buying and Selling

In other Cullen/Frost Bankers news, EVP Carol Jean Severyn sold 837 shares of the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $148.29, for a total value of $124,118.73. Following the transaction, the executive vice president directly owned 12,712 shares of the company's stock, valued at $1,885,062.48. This represents a 6.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 1.14% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cullen/Frost Bankers

Hedge funds and other institutional investors have recently modified their holdings of the company. Private Advisor Group LLC grew its position in Cullen/Frost Bankers by 2.9% during the third quarter. Private Advisor Group LLC now owns 3,283 shares of the bank's stock valued at $416,000 after buying an additional 94 shares during the period. Cardinal Capital Management raised its position in Cullen/Frost Bankers by 0.5% in the fourth quarter. Cardinal Capital Management now owns 18,134 shares of the bank's stock worth $2,296,000 after acquiring an additional 98 shares during the period. Evolve Private Wealth LLC boosted its stake in shares of Cullen/Frost Bankers by 6.0% during the 1st quarter. Evolve Private Wealth LLC now owns 1,726 shares of the bank's stock worth $237,000 after acquiring an additional 98 shares during the last quarter. Covestor Ltd boosted its stake in shares of Cullen/Frost Bankers by 67.6% during the 4th quarter. Covestor Ltd now owns 248 shares of the bank's stock worth $31,000 after acquiring an additional 100 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund grew its position in shares of Cullen/Frost Bankers by 0.8% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 12,921 shares of the bank's stock valued at $1,771,000 after acquiring an additional 100 shares during the period. Institutional investors and hedge funds own 86.90% of the company's stock.

Key Cullen/Frost Bankers News

Here are the key news stories impacting Cullen/Frost Bankers this week:

• Positive Sentiment: Strong quarterly earnings: Cullen/Frost reported adjusted earnings of $2.70 per share, above the $2.53–$2.55 consensus range and up from $2.39 a year earlier. Revenue reached approximately $608.7 million, also exceeding expectations of $589.7 million. Cullen/Frost Bankers Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Healthy operating growth: Second-quarter net income available to common shareholders increased to $170.4 million from $155.3 million. Net interest income rose 4.3% year over year, average loans grew 7.4% to $22.6 billion, deposits increased 2.1% to $42.6 billion, and non-interest income advanced 9.4%. Management also highlighted a record loan pipeline during the earnings call. Cullen/Frost Reports Second Quarter Results
• Positive Sentiment: Analyst upgrade: Keefe, Bruyette & Woods raised its price target from $165 to $175 and upgraded CFR to “outperform,” implying additional upside from recent trading levels. Benzinga analyst price target update
• Positive Sentiment: Shareholder returns: The bank declared a quarterly common-stock dividend of $1.03 per share, equivalent to an approximately 2.5% annualized yield, and repurchased about $90 million of stock during the quarter.
• Neutral Sentiment: Brokerage consensus remains cautious: Despite KBW’s upgrade, the overall analyst recommendation for Cullen/Frost remains “Hold,” suggesting expectations for further gains are not broadly shared. Cullen/Frost Receives Average Hold Recommendation
• Negative Sentiment: Expense growth continues: Non-interest expense rose 4.2% year over year to $361.7 million, which could limit operating leverage if costs accelerate. CFR’s shares are also near their 52-week high, leaving less room for disappointment despite the favorable quarter.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc is the holding company for Frost Bank, a Texas-chartered financial institution whose origins date back to 1868 in San Antonio. As one of the oldest banking organizations in the state, it offers a broad range of services to individuals, small and large businesses, and institutional clients. Core banking activities include commercial lending, deposit services, cash management and trade finance, while consumer products cover residential mortgages, personal lines of credit and home equity loans.

Beyond traditional banking, the company provides comprehensive treasury and equipment leasing solutions tailored to support working capital and capital expenditure requirements.

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