The PNC Financial Services Group Inc. (PNC) Downgraded by Zacks Investment Research

The PNC Financial Services Group Inc. (PNC) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of PNC Financial Services Group Inc. (NYSE:PNC) from a buy rating to a hold rating in a research note issued to investors on Monday.

According to Zacks, “PNC Financial’s shares outperformed the Zacks categorized Regional Banks-Major industry, over the last three months. Also, the company’s fourth-quarter 2016 earnings surpassed the Zacks Consensus Estimate, reflecting a marginal rise in net interest income, partially offset by lower non-interest income and a rise in operating expenses. We remain encouraged by the company’s efforts to generate positive operating leverage through its cost-saving initiatives. Also, management projects revenues to rise at a mid-single digit rate in 2017, aided by loan growth. However, margin compression is likely to persist in the absence of significant rise in interest rate. In addition, escalating costs stemming from legal hassles and stringent regulatory requirements will likely hurt the company’s profitability and business flexibility in the near term.”

Several other research firms have also weighed in on PNC. Raymond James Financial Inc. upgraded PNC Financial Services Group from an underperform rating to a market perform rating in a report on Thursday, October 6th. Argus upgraded PNC Financial Services Group from a hold rating to a buy rating and raised their target price for the company from $88.03 to $98.00 in a report on Monday, October 17th. Barclays PLC raised their target price on PNC Financial Services Group from $97.00 to $125.00 and gave the company an equal weight rating in a report on Tuesday, January 3rd. RBC Capital Markets restated a buy rating and set a $95.00 target price on shares of PNC Financial Services Group in a report on Thursday, November 3rd. Finally, raised their target price on PNC Financial Services Group from $86.00 to $92.00 and gave the company an underperform rating in a report on Friday, September 23rd. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and thirteen have assigned a buy rating to the company. The stock currently has an average rating of Hold and an average target price of $100.97.

PNC Financial Services Group (NYSE:PNC) opened at 115.61 on Monday. The company has a market cap of $56.07 billion, a P/E ratio of 15.84 and a beta of 0.89. The firm’s 50-day moving average price is $116.12 and its 200-day moving average price is $96.93. PNC Financial Services Group has a 12-month low of $77.40 and a 12-month high of $121.33.

PNC Financial Services Group (NYSE:PNC) last posted its earnings results on Friday, January 13th. The company reported $1.97 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.85 by $0.12. PNC Financial Services Group had a return on equity of 8.96% and a net margin of 23.90%. The company had revenue of $3.83 billion for the quarter. During the same quarter last year, the business earned $1.87 earnings per share. PNC Financial Services Group’s quarterly revenue was down .3% on a year-over-year basis. Analysts expect that PNC Financial Services Group will post $7.87 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Sunday, February 5th. Shareholders of record on Tuesday, January 17th will be issued a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 1.90%. The ex-dividend date is Thursday, January 12th. PNC Financial Services Group’s dividend payout ratio is 30.10%.

In other PNC Financial Services Group news, insider Robert Q. Reilly sold 22,000 shares of the company’s stock in a transaction on Thursday, October 27th. The stock was sold at an average price of $95.49, for a total transaction of $2,100,780.00. Following the transaction, the insider now owns 104,803 shares of the company’s stock, valued at approximately $10,007,638.47. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO William S. Demchak sold 82,500 shares of the company’s stock in a transaction on Thursday, October 27th. The stock was sold at an average price of $95.31, for a total value of $7,863,075.00. Following the transaction, the chief executive officer now directly owns 476,255 shares in the company, valued at approximately $45,391,864.05. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 309,309 shares of company stock worth $31,695,101. Company insiders own 0.57% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. TIAA CREF Investment Management LLC increased its position in PNC Financial Services Group by 95.3% in the third quarter. TIAA CREF Investment Management LLC now owns 3,134,850 shares of the company’s stock valued at $282,419,000 after buying an additional 1,529,524 shares in the last quarter. Massachusetts Financial Services Co. MA increased its position in PNC Financial Services Group by 22.1% in the second quarter. Massachusetts Financial Services Co. MA now owns 7,709,313 shares of the company’s stock valued at $627,462,000 after buying an additional 1,395,872 shares in the last quarter. Cohen & Steers Inc. increased its position in PNC Financial Services Group by 1,098.6% in the second quarter. Cohen & Steers Inc. now owns 1,371,150 shares of the company’s stock valued at $156,339,000 after buying an additional 1,256,750 shares in the last quarter. Toronto Dominion Bank increased its position in PNC Financial Services Group by 15,925.5% in the third quarter. Toronto Dominion Bank now owns 1,018,421 shares of the company’s stock valued at $91,750,000 after buying an additional 1,012,066 shares in the last quarter. Finally, Bank of Montreal Can purchased a new position in PNC Financial Services Group during the second quarter valued at about $78,133,000. 80.86% of the stock is currently owned by hedge funds and other institutional investors.

About PNC Financial Services Group

The PNC Financial Services Group, Inc (PNC) is a diversified financial services company in the United States. The Company operates through six segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group, Residential Mortgage Banking, BlackRock and Non-Strategic Assets Portfolio.

Get a free copy of the Zacks research report on PNC Financial Services Group (PNC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Related posts

Leave a Comment