Zacks Investment Research downgraded shares of First Republic Bank (NYSE:FRC) from a hold rating to a sell rating in a research note released on Tuesday.
According to Zacks, “Shares of First Republic have outperformed the industry over the past three months. Also, the company depicts a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Earnings estimates have been revised upward prior to the fourth-quarter earnings release. The company remains well positioned for growth given its simpler business model and non-engagement in additional businesses. Also, increased loan originations are expected to support the company’s growth prospects over the long run. Nevertheless, escalating costs owing to investments in digital initiatives are expected to hurt its bottom-line growth. Further, despite rising interest rate environment, contracting net interest margin due to flattening of yield curve continues to keep interest income under pressure.”
A number of other equities research analysts also recently commented on the company. Morgan Stanley lowered their price objective on First Republic Bank from $95.00 to $94.00 and set an equal weight rating for the company in a research report on Tuesday. Raymond James downgraded First Republic Bank from an outperform rating to a market perform rating in a research report on Monday, January 7th. Wells Fargo & Co raised First Republic Bank from a market perform rating to an outperform rating and set a $87.50 price objective for the company in a research report on Wednesday, January 2nd. Robert W. Baird began coverage on First Republic Bank in a research report on Thursday, December 20th. They issued a neutral rating and a $92.00 price objective for the company. Finally, Stephens raised First Republic Bank from an equal weight rating to an overweight rating in a research report on Thursday, December 20th. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and five have assigned a buy rating to the company. First Republic Bank currently has an average rating of Hold and an average price target of $99.19.
First Republic Bank (NYSE:FRC) last announced its quarterly earnings data on Friday, October 12th. The bank reported $1.19 EPS for the quarter, missing the Zacks’ consensus estimate of $1.20 by ($0.01). The business had revenue of $768.83 million during the quarter, compared to analysts’ expectations of $765.80 million. First Republic Bank had a net margin of 24.05% and a return on equity of 11.47%. During the same period in the prior year, the firm earned $1.14 EPS. On average, research analysts anticipate that First Republic Bank will post 4.76 earnings per share for the current fiscal year.
A number of institutional investors have recently modified their holdings of FRC. Capital Research Global Investors acquired a new position in First Republic Bank in the third quarter valued at $675,106,000. Capital International Investors acquired a new position in shares of First Republic Bank during the third quarter worth about $462,618,000. Bank of America Corp DE lifted its stake in shares of First Republic Bank by 72.2% during the second quarter. Bank of America Corp DE now owns 3,428,956 shares of the bank’s stock worth $331,887,000 after purchasing an additional 1,437,779 shares in the last quarter. Select Equity Group L.P. lifted its stake in shares of First Republic Bank by 44.7% during the third quarter. Select Equity Group L.P. now owns 2,858,783 shares of the bank’s stock worth $274,443,000 after purchasing an additional 882,986 shares in the last quarter. Finally, BlackRock Inc. lifted its stake in shares of First Republic Bank by 6.5% during the third quarter. BlackRock Inc. now owns 12,082,935 shares of the bank’s stock worth $1,159,962,000 after purchasing an additional 733,112 shares in the last quarter.
About First Republic Bank
First Republic Bank, together with its subsidiaries, provides private banking, private business banking, real estate lending, and wealth management services to clients in metropolitan areas of the United States. It operates through two segments, Commercial Banking and Wealth Management. The company offers deposit products, such as checking, money market checking, savings, and passbook deposits, as well as certificates of deposit.
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