Oppenheimer analyst Chris Kotowski maintained a Hold rating on PNC Financial (NYSE: PNC) today. The company’s shares closed on Friday at $124.26, close to its 52-week low of $121.61.
Kotowski observed:
“. . . that the market would think PNC should be worth 5.6% less after it reported another solid quarter that beat our and consensus estimates. Let us be clear, we do not have a dog in this hunt given our basically neutral view on the stock. It is a fine company that is doing well and too cheap relative to the market, but pretty fairly priced and well understood relative to other banks. But the fact that the market would sell the stock off by 5.6% betrays a simplistic linear thought process that holds that slow loan growth = slow earnings growth. Focus instead on returns. A company with a 15.75% ROTCE and a <30% dividend payout generates a lot of capital to drive earnings higher."
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 9.8% and a 61.5% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Fidus Investment Corporation.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for PNC Financial with a $160.50 average price target.
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Based on PNC Financial’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $5.11 billion and net profit of $1.38 billion. In comparison, last year the company earned revenue of $4.63 billion and had a net profit of $1.11 billion.
Based on the recent corporate insider activity of 123 insiders, corporate insider sentiment is negative on the stock. Last month, Robert Reilly, the EVP of PNC sold 24,710 shares for a total of $3,471,261.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
PNC Financial Services Group, Inc. engages in the provision of diversified financial services, including retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-backed lending; wealth management and asset management.
