U.S. Bancorp Target of Unusually Large Options Trading (NYSE:USB)

Key Points

• U.S. Bancorp experienced a notable surge in options trading, with 17,839 call options purchased, marking an increase of approximately 49% compared to its usual daily volume.
• The company announced an increase in its quarterly dividend, boosting it from $0.50 to $0.52, resulting in an annualized dividend of $2.08 and a yield of 4.2%.
• Wall Street analysts have raised their target prices for U.S. Bancorp, with the average target now at $52.60, reflecting a generally positive outlook for the stock.

U.S. Bancorp (NYSE:USB - Get Free Report) was the recipient of some unusual options trading on Thursday. Investors purchased 17,839 call options on the stock. This represents an increase of approximately 49% compared to the typical daily volume of 12,007 call options.

U.S. Bancorp Price Performance

Shares of USB traded up $0.46 during trading hours on Thursday, hitting $50.07. 5,076,521 shares of the company were exchanged, compared to its average volume of 10,461,445. The company has a market capitalization of $77.92 billion, a PE ratio of 11.98, a PEG ratio of 1.52 and a beta of 1.05. The company has a debt-to-equity ratio of 1.16, a current ratio of 0.81 and a quick ratio of 0.81. The firm has a fifty day simple moving average of $46.94 and a 200-day simple moving average of $44.07. U.S. Bancorp has a one year low of $35.18 and a one year high of $53.98.

U.S. Bancorp (NYSE:USB - Get Free Report) last released its quarterly earnings data on Thursday, July 17th. The financial services provider reported $1.11 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.04. The business had revenue of $7.06 billion during the quarter, compared to analyst estimates of $7.07 billion. U.S. Bancorp had a return on equity of 13.08% and a net margin of 16.30%.The company's revenue was up 2.0% compared to the same quarter last year. During the same period last year, the company posted $0.98 EPS. U.S. Bancorp has set its FY 2025 guidance at EPS. As a group, sell-side analysts predict that U.S. Bancorp will post 4.38 earnings per share for the current year.

U.S. Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be given a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 4.2%. This is a boost from U.S. Bancorp's previous quarterly dividend of $0.50. The ex-dividend date of this dividend is Tuesday, September 30th. U.S. Bancorp's payout ratio is 47.85%.

Insider Transactions at U.S. Bancorp

In other U.S. Bancorp news, EVP Souheil Badran sold 23,727 shares of the company's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $46.34, for a total transaction of $1,099,509.18. Following the sale, the executive vice president owned 70,346 shares in the company, valued at $3,259,833.64. This represents a 25.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 0.23% of the stock is owned by insiders.

Institutional Trading of U.S. Bancorp

Several hedge funds and other institutional investors have recently modified their holdings of the business. IMG Wealth Management Inc. purchased a new stake in shares of U.S. Bancorp during the second quarter worth $25,000. Hillsdale Investment Management Inc. acquired a new stake in U.S. Bancorp during the second quarter valued at approximately $27,000. Saudi Central Bank acquired a new stake in U.S. Bancorp during the first quarter valued at approximately $26,000. Westend Capital Management LLC acquired a new stake in U.S. Bancorp during the first quarter valued at approximately $27,000. Finally, Pineridge Advisors LLC boosted its holdings in U.S. Bancorp by 446.2% during the second quarter. Pineridge Advisors LLC now owns 639 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 522 shares in the last quarter. Institutional investors and hedge funds own 77.60% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on USB shares. Evercore ISI raised their target price on U.S. Bancorp from $44.00 to $49.00 and gave the company an "in-line" rating in a research report on Wednesday, June 4th. Citigroup raised their target price on U.S. Bancorp from $55.00 to $59.00 and gave the company a "buy" rating in a research report on Wednesday, July 2nd. Truist Financial raised their target price on U.S. Bancorp from $49.00 to $51.00 and gave the company a "hold" rating in a research report on Wednesday. DA Davidson raised their target price on U.S. Bancorp from $49.00 to $52.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Finally, The Goldman Sachs Group raised their target price on U.S. Bancorp from $41.00 to $46.00 and gave the company a "neutral" rating in a research report on Tuesday, June 10th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $52.60.

About U.S. Bancorp

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments.

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