Wall Street Zen Downgrades First United (NASDAQ:FUNC) to Hold

Key Points

• Wall Street Zen downgraded First United from “Buy” to “Hold,” although the broader analyst consensus remains “Buy” with an average price target of $49.50.
• First United reported quarterly earnings of $1.13 per share, exceeding the $1.05 consensus estimate; revenue reached $65.27 million, while analysts expect full-year EPS of approximately $4.50.
• The stock opened at $45.38, near its 12-month high of $46.30. Insiders have been net sellers recently, while institutional ownership stands at 33.27% and several major investors increased their positions.

First United (NASDAQ:FUNC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

Several other research analysts also recently commented on the stock. Weiss Ratings reaffirmed a "buy (b)" rating on shares of First United in a research note on Friday, July 10th. Hovde Group reissued an "outperform" rating and issued a $49.00 price target on shares of First United in a report on Thursday, July 23rd. Finally, Raymond James Financial raised their price target on shares of First United from $44.00 to $50.00 and gave the stock an "outperform" rating in a report on Wednesday, July 1st. Three analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $49.50.

First United Stock Down 1.7%

Shares of NASDAQ:FUNC opened at $45.38 on Friday. First United has a 12-month low of $33.54 and a 12-month high of $46.30. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.15. The stock's 50-day moving average price is $43.96 and its 200-day moving average price is $39.69. The stock has a market capitalization of $292.70 million, a P/E ratio of 11.76 and a beta of 0.52.

First United (NASDAQ:FUNC - Get Free Report) last issued its earnings results on Monday, July 20th. The bank reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.08. The company had revenue of $65.27 million during the quarter, compared to analysts' expectations of $23.55 million. First United had a return on equity of 13.69% and a net margin of 20.05%. On average, equities analysts anticipate that First United will post 4.5 earnings per share for the current year.

Insiders Place Their Bets

In other First United news, Director Irvin Robert Rudy sold 1,000 shares of the firm's stock in a transaction that occurred on Friday, July 24th. The shares were sold at an average price of $44.58, for a total transaction of $44,580.00. Following the completion of the transaction, the director owned 37,500 shares of the company's stock, valued at approximately $1,671,750. This trade represents a 2.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Robert L. Fisher II sold 5,250 shares of First United stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $45.29, for a total transaction of $237,772.50. Following the transaction, the executive vice president owned 9,105 shares of the company's stock, valued at $412,365.45. The trade was a 36.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have acquired 280 shares of company stock worth $12,816 and have sold 11,250 shares worth $500,752. Corporate insiders own 8.10% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Millennium Management LLC boosted its holdings in First United by 349.9% in the first quarter. Millennium Management LLC now owns 140,586 shares of the bank's stock worth $4,220,000 after acquiring an additional 109,340 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of First United by 53.2% during the first quarter. Goldman Sachs Group Inc. now owns 58,718 shares of the bank's stock valued at $1,763,000 after acquiring an additional 20,387 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of First United by 6.7% during the first quarter. Empowered Funds LLC now owns 26,549 shares of the bank's stock valued at $797,000 after acquiring an additional 1,656 shares in the last quarter. Jane Street Group LLC raised its position in shares of First United by 67.4% in the 1st quarter. Jane Street Group LLC now owns 26,035 shares of the bank's stock worth $782,000 after purchasing an additional 10,483 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in shares of First United by 112.3% in the 2nd quarter. Geode Capital Management LLC now owns 139,939 shares of the bank's stock worth $4,340,000 after purchasing an additional 74,032 shares during the last quarter. Hedge funds and other institutional investors own 33.27% of the company's stock.

First United Company Profile

First United Corporation is a bank holding company that, through its subsidiary First United Bank & Trust, provides a full suite of commercial and consumer banking services to individuals, businesses, and agricultural customers across central Oklahoma. The company offers deposit accounts such as checking, savings, money market and time deposits, alongside a variety of lending solutions covering commercial real estate, construction, agricultural and consumer loans.

In addition to traditional banking products, First United delivers treasury management and cash management solutions designed to streamline client operations, as well as online and mobile banking platforms for account access and payments.

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