BankUnited (NYSE:BKU) Stock Rating Upgraded by Zacks Investment Research

BankUnited (NYSE:BKU) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday, Zacks.com reports. The firm presently has a $27.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price target suggests a potential upside of 17.34% from the company’s current price.

According to Zacks, “BankUnited's earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company’s solid loan and deposit balances, and efforts to strengthen fee-income sources are expected to continue to aid profitability. Also, the company's strategy to increase low-cost deposits will likely provide further support to revenue growth. However, margin pressure, owing to near-zero interest rates, the company’s significant exposure toward loans that carry higher amounts of risk and persistently increasing operating expenses mainly due to technology investments remain major near-term concerns and make us apprehensive about its growth prospects. Nevertheless, given the company's earnings strength, its capital deployments look sustainable. Shares of BankUnited have underperformed the industry so far this year.”

BKU has been the topic of a number of other research reports. Piper Sandler raised shares of BankUnited from a “neutral” rating to an “overweight” rating and upped their target price for the company from $22.00 to $27.00 in a research report on Thursday, July 30th. Royal Bank of Canada reaffirmed a “buy” rating and issued a $25.00 target price on shares of BankUnited in a research report on Thursday, July 30th. Wedbush upped their target price on shares of BankUnited from $19.00 to $21.00 and gave the company a “neutral” rating in a research report on Thursday, July 30th. ValuEngine cut shares of BankUnited from a “hold” rating to a “sell” rating in a research report on Monday, August 3rd. Finally, Bank of America upgraded shares of BankUnited from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $24.00 to $30.00 in a research note on Monday, June 8th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. BankUnited presently has a consensus rating of “Buy” and a consensus target price of $28.42.

Shares of BKU stock traded down $0.23 on Wednesday, hitting $23.01. 667 shares of the stock traded hands, compared to its average volume of 2,137,418. The firm’s 50-day moving average price is $22.62 and its two-hundred day moving average price is $20.51. BankUnited has a twelve month low of $13.47 and a twelve month high of $37.60. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.89 and a current ratio of 0.89. The stock has a market capitalization of $2.15 billion, a PE ratio of 10.81, a PEG ratio of 5.01 and a beta of 1.38.

BankUnited (NYSE:BKU) last posted its earnings results on Wednesday, July 29th. The financial services provider reported $0.80 EPS for the quarter, beating the Zacks’ consensus estimate of $0.21 by $0.59. BankUnited had a net margin of 15.86% and a return on equity of 7.57%. The company had revenue of $228.69 million for the quarter, compared to analysts’ expectations of $217.68 million. During the same quarter in the prior year, the company posted $0.81 earnings per share. On average, equities research analysts anticipate that BankUnited will post 1.75 EPS for the current fiscal year.

Several hedge funds have recently added to or reduced their stakes in BKU. Captrust Financial Advisors purchased a new stake in shares of BankUnited during the second quarter worth approximately $28,000. Private Advisor Group LLC purchased a new stake in shares of BankUnited during the second quarter worth approximately $35,000. Canada Pension Plan Investment Board increased its stake in shares of BankUnited by 183.4% during the second quarter. Canada Pension Plan Investment Board now owns 1,859 shares of the financial services provider’s stock worth $38,000 after buying an additional 1,203 shares during the period. CWM Advisors LLC purchased a new stake in shares of BankUnited during the first quarter worth approximately $41,000. Finally, Procyon Private Wealth Partners LLC increased its stake in shares of BankUnited by 93.5% during the first quarter. Procyon Private Wealth Partners LLC now owns 2,515 shares of the financial services provider’s stock worth $47,000 after buying an additional 1,215 shares during the period. Hedge funds and other institutional investors own 97.35% of the company’s stock.

BankUnited Company Profile

BankUnited, Inc operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States. The company offers deposit products, such as checking, money market deposit, savings accounts, and certificates of deposit; and treasury management services.

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