Zacks Investment Research Upgrades Cullen/Frost Bankers (NYSE:CFR) to “Strong-Buy”

Cullen/Frost Bankers (NYSE:CFR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Tuesday, Zacks.com reports. The firm currently has a $128.00 price target on the bank’s stock. Zacks Investment Research‘s price target suggests a potential upside of 14.97% from the company’s current price.

According to Zacks, “Shares of Cullen/Frost have outperformed the industry over the past year. Also, the company displays an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Improving loan and deposit balances, along with efforts to enhance presence in the lucrative Texas markets through strategic acquisitions, seem encouraging and will likely support top-line growth in the quarters ahead. Further, the company's involvement in steady capital-deployment activities seems impressive and would enhance shareholders' value. However, significant exposure to real estate loan portfolios, rising expenses and worsening asset quality might hamper the company’s bottom-line growth. Nevertheless, manageable debt level makes Cullen/Frost less likely to default in case of any economic downturn.”

A number of other equities research analysts have also commented on the company. Truist upped their price target on Cullen/Frost Bankers from $96.00 to $111.00 in a research report on Monday, March 8th. Morgan Stanley upped their price target on Cullen/Frost Bankers from $85.00 to $90.00 and gave the company an “underweight” rating in a research report on Wednesday, March 24th. Finally, Truist Securities upped their target price on Cullen/Frost Bankers from $96.00 to $111.00 and gave the company a “hold” rating in a research report on Monday, March 15th. Five analysts have rated the stock with a sell rating, three have assigned a hold rating, one has given a buy rating and one has given a strong buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average target price of $88.00.

NYSE CFR opened at $111.33 on Tuesday. The business’s 50-day moving average price is $110.96 and its two-hundred day moving average price is $91.23. Cullen/Frost Bankers has a 12 month low of $55.53 and a 12 month high of $119.77. The firm has a market capitalization of $7.06 billion, a PE ratio of 20.93, a price-to-earnings-growth ratio of 2.13 and a beta of 1.56. The company has a current ratio of 0.72, a quick ratio of 0.72 and a debt-to-equity ratio of 0.06.

Cullen/Frost Bankers (NYSE:CFR) last released its quarterly earnings results on Wednesday, January 27th. The bank reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.10. Cullen/Frost Bankers had a return on equity of 6.68% and a net margin of 22.81%. The firm had revenue of $357.06 million for the quarter, compared to analyst estimates of $351.61 million. During the same quarter in the previous year, the company posted $1.60 EPS. As a group, analysts forecast that Cullen/Frost Bankers will post 3.43 earnings per share for the current fiscal year.

In other Cullen/Frost Bankers news, Director Carlos Alvarez sold 40,000 shares of the stock in a transaction that occurred on Tuesday, February 9th. The stock was sold at an average price of $99.12, for a total value of $3,964,800.00. Following the transaction, the director now owns 414,000 shares in the company, valued at $41,035,680. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Jerry Salinas sold 12,000 shares of the stock in a transaction that occurred on Tuesday, February 9th. The stock was sold at an average price of $98.75, for a total value of $1,185,000.00. Following the completion of the transaction, the chief financial officer now owns 32,206 shares in the company, valued at approximately $3,180,342.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 121,752 shares of company stock worth $12,463,335. Corporate insiders own 4.75% of the company’s stock.

A number of large investors have recently made changes to their positions in the business. CI Investments Inc. boosted its holdings in Cullen/Frost Bankers by 21.7% in the fourth quarter. CI Investments Inc. now owns 757 shares of the bank’s stock worth $66,000 after acquiring an additional 135 shares in the last quarter. Bahl & Gaynor Inc. raised its stake in shares of Cullen/Frost Bankers by 3.7% in the fourth quarter. Bahl & Gaynor Inc. now owns 4,380 shares of the bank’s stock worth $382,000 after purchasing an additional 155 shares during the last quarter. Public Employees Retirement System of Ohio raised its stake in shares of Cullen/Frost Bankers by 0.7% in the third quarter. Public Employees Retirement System of Ohio now owns 22,788 shares of the bank’s stock worth $1,457,000 after purchasing an additional 158 shares during the last quarter. Lincoln National Corp raised its stake in shares of Cullen/Frost Bankers by 4.8% in the fourth quarter. Lincoln National Corp now owns 4,359 shares of the bank’s stock worth $380,000 after purchasing an additional 200 shares during the last quarter. Finally, Azimuth Capital Management LLC raised its stake in shares of Cullen/Frost Bankers by 5.2% in the fourth quarter. Azimuth Capital Management LLC now owns 4,025 shares of the bank’s stock worth $351,000 after purchasing an additional 200 shares during the last quarter. Institutional investors and hedge funds own 81.39% of the company’s stock.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc operates as a bank holding company of Frost Bank, which engages in the provision of commercial and consumer banking services, as well as trust and investment management, mutual funds, investment banking, insurance, brokerage, leasing, asset-based lending, treasury management and item processing services.

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