BankUnited (BKU) Rating Increased to Buy at Zacks Investment Research

BankUnited (NYSE:BKU) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday, Zacks.com reports. The brokerage currently has a $38.00 target price on the financial services provider’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 12.36% from the company’s current price.

According to Zacks, “Shares of BankUnited have outperformed the industry over the past six months. The company has an impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate in three of the trailing four quarters. The company’s first-quarter 2019 results reflected lower expenses and higher non-interest income. Consistent growth in loans and deposits, and efforts to strengthen fee income sources are expected to continue driving revenues in the quarters ahead. Moreover, efficient capital deployment activities reflect a strong balance sheet position. However, continued margin pressure (despite higher interest rates) remains a major near-term concern for the company. Also, increasing expenses are expected to hurt its bottom-line growth to an extent. Further, the company’s considerable exposure to residential mortgage loans is a concern.”

Several other research analysts have also recently issued reports on the company. ValuEngine raised BankUnited from a “sell” rating to a “hold” rating in a research report on Wednesday, May 1st. Barclays cut BankUnited from an “overweight” rating to an “underweight” rating and lifted their target price for the company from $35.75 to $37.00 in a research report on Friday, April 26th. Sandler O’Neill cut BankUnited from a “buy” rating to a “hold” rating in a research report on Wednesday, April 24th. Finally, Stephens cut BankUnited from an “overweight” rating to an “equal weight” rating in a research report on Wednesday, March 6th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and three have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $38.67.

Shares of NYSE:BKU traded up $0.32 during mid-day trading on Friday, hitting $33.82. 37,185 shares of the company traded hands, compared to its average volume of 805,671. The stock has a market cap of $3.39 billion, a price-to-earnings ratio of 14.33, a PEG ratio of 1.38 and a beta of 1.11. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 1.72. BankUnited has a 12-month low of $28.05 and a 12-month high of $44.97.

BankUnited (NYSE:BKU) last announced its earnings results on Wednesday, April 24th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.64 by $0.01. The company had revenue of $227.16 million for the quarter, compared to analysts’ expectations of $219.03 million. BankUnited had a return on equity of 10.30% and a net margin of 19.06%. During the same quarter in the previous year, the firm earned $0.77 earnings per share. As a group, equities research analysts expect that BankUnited will post 2.82 earnings per share for the current year.

Hedge funds have recently bought and sold shares of the business. Bank of Montreal Can boosted its position in BankUnited by 114.4% in the first quarter. Bank of Montreal Can now owns 283,957 shares of the financial services provider’s stock worth $9,484,000 after purchasing an additional 151,499 shares during the last quarter. Strs Ohio boosted its position in BankUnited by 19.1% in the fourth quarter. Strs Ohio now owns 784,821 shares of the financial services provider’s stock worth $23,497,000 after purchasing an additional 125,975 shares during the last quarter. HAP Trading LLC purchased a new position in BankUnited in the fourth quarter worth $890,000. Shoals Capital Management LP purchased a new position in BankUnited in the fourth quarter worth $12,725,000. Finally, Southside Capital LLC purchased a new position in BankUnited in the fourth quarter worth $4,046,000. 98.10% of the stock is currently owned by institutional investors and hedge funds.

About BankUnited

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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