U.S. Bancorp (USB) Looking Forward To Another Wild Ride

Analysts at Jefferies cut their rating on shares of U.S. Bancorp (NYSE:USB) from Buy to Hold in their opinion released on January 08. Barclays analysts again handed out a Overweight rating to USB stock but they lifted target price for the shares in a flash note to investors on January 02. The price target has been raised from $61 to $64. Barclays, analysts launched coverage of USB stock with a Overweight rating, according to their flash note to investors on January 02. Analysts at Citigroup downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to November 02.

By watching the trading activity of corporate insiders, it will become easier to get a sense of U.S. Bancorp (NYSE:USB)’s prospects. The earliest insider trade took place on 11/14/2018. Omaley David B parted with a total of 10.9 thousand shares of company at average share price of $53.66. The total for the sales was set at $585 thousand. After this transaction, the Director account balance stood at 201.89 thousand shares. The stock lost -11.59 percent since that insider sale. On 11/13/2018, Elmore John R., Vice Chairman, sold 19.42 thousand shares at a price per share of $53.59. This removed 1.04 million shares from the insider’s fortune and the stock saw a -11.48 percent retreat in value since the news became public. This transaction left 86.71 thousand shares in the Vice Chairman account. On 11/12/2018, EVP and Chief Credit Officer Runkel Mark G. performed a sale transaction worth $337.66 thousand. This sale at $53.2 each has eliminated 6.35 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -10.83 percent decrease since the transaction was reported. The insider now is left with 72.09 thousand shares remaining in the account. Cecere Andrew, who performs the Chairman, President and CEO job, sold 183.37 thousand shares for $9.71 million. The disposal occurred on 11/08/2018 was priced at $52.95 per share. The share price plunged -10.41 percent since the reporting date. Cecere Andrew now left with a stake of 720.82 thousand USB stock worth $34.2 million after the insider selling.

U.S. Bancorp (USB) is expected to jump by 14.88 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $64-month high price target. This represents a whopping 34.91 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $53.5, which represents a return potential of 12.77 percent when compared to the closing price of the stock of $47.44 on Friday, January 11. The lowest price target for the stock is $45 — slightly more than -5.14 percent from USB’s current share price.

The shares are currently floating around the first support level of $46.95. Below this, the next support is placed in the zone of $46.46. Till the time, the USB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 46.86 on daily chart, which may remain a cause for concern. If the price breaks below $46.46 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $47.74 mark may result into a pull-back move towards $48.04 level.

USB shares accumulated 0.13 points or 0.27 percent on Friday to $47.44 with a light trade volume of 5.2 million shares. After opening the session at $47.1, the shares went as high as $47.55 and as low as $46.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $77.3 billion and now has 1.63 billion shares outstanding. U.S. Bancorp (USB) stock has lost -5.35 percent of market value in 21 trading days.

USB stock has a trailing 3-year beta of 1.06, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.47 a share in the trailing twelve months. The stock’s value has surged 3.81 percent year to date (YTD) against a decline of -15.59 percent in 12 month’s time. The company’s shares still trade -18.91 percent away from its 1-year high of $58.50 and 9.97 percent up from 52-week low of $43.14. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of U.S. Bancorp (USB) are trading at a P/E ratio of 16.36 times earnings reported for the past 12 months. The industry USB operates in has an average P/E of 19.01. Its P/E ratio went as low as 11.25X and as high as 15.85 over the 5-year span. Further, it is sporting a 4.95 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.73. 0 percent is the gross profit margin for U.S. Bancorp and operating margin sits at 73.2 percent. Along with this, the net profit margin is 42.4 percent.