First Republic Bank (FRC) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of First Republic Bank (NYSE:FRC) from a hold rating to a sell rating in a research report released on Tuesday morning.

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 research analysts also recently issued reports on the company. Stephens upgraded First Republic Bank from an equal weight rating to an overweight rating in a research note on Thursday, December 20th. Robert W. Baird assumed coverage on First Republic Bank in a research note on Thursday, December 20th. They set a neutral rating and a $92.00 price target for the company. Morgan Stanley cut their price target on First Republic Bank from $99.00 to $95.00 and set an equal weight rating for the company in a research note on Tuesday, December 11th. Royal Bank of Canada increased their price target on First Republic Bank to $102.00 and gave the stock a sector perform rating in a research note on Thursday, September 13th. They noted that the move was a valuation call. Finally, Piper Jaffray Companies reiterated a hold rating and set a $94.00 price target on shares of First Republic Bank in a research note on Tuesday, October 9th. One analyst has rated the stock with a sell rating, eleven have given a hold rating and five have issued a buy rating to the company’s stock. First Republic Bank presently has a consensus rating of Hold and a consensus target price of $99.19.

NYSE:FRC traded down $0.89 during trading on Tuesday, reaching $85.16. The company’s stock had a trading volume of 56,126 shares, compared to its average volume of 3,433,131. The company has a market capitalization of $13.76 billion, a PE ratio of 19.76, a price-to-earnings-growth ratio of 1.34 and a beta of 0.91. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.00 and a quick ratio of 1.00. First Republic Bank has a 12 month low of $79.42 and a 12 month high of $106.75.

First Republic Bank (NYSE:FRC) last announced its quarterly earnings data on Friday, October 12th. The bank reported $1.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.20 by ($0.01). The business had revenue of $768.83 million during the quarter, compared to the consensus estimate 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 quarter last year, the company earned $1.14 EPS. Sell-side analysts anticipate that First Republic Bank will post 4.76 earnings per share for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Capital Insight Partners LLC boosted its stake in First Republic Bank by 0.8% in the 4th quarter. Capital Insight Partners LLC now owns 15,707 shares of the bank’s stock worth $1,365,000 after purchasing an additional 125 shares during the period. Paradigm Asset Management Co. LLC boosted its stake in First Republic Bank by 5.7% in the 3rd quarter. Paradigm Asset Management Co. LLC now owns 6,500 shares of the bank’s stock worth $624,000 after purchasing an additional 350 shares during the period. Skandinaviska Enskilda Banken AB publ boosted its stake in First Republic Bank by 3.3% in the 3rd quarter. Skandinaviska Enskilda Banken AB publ now owns 21,687 shares of the bank’s stock worth $2,082,000 after purchasing an additional 700 shares during the period. Beese Fulmer Investment Management Inc. boosted its stake in First Republic Bank by 1.2% in the 3rd quarter. Beese Fulmer Investment Management Inc. now owns 64,131 shares of the bank’s stock worth $6,157,000 after purchasing an additional 739 shares during the period. Finally, Avitas Wealth Management LLC boosted its stake in First Republic Bank by 2.2% in the 3rd quarter. Avitas Wealth Management LLC now owns 34,796 shares of the bank’s stock worth $3,340,000 after purchasing an additional 749 shares during the period.

First Republic Bank Company Profile

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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