Zacks Investment Research Lowers BB&T Corporation (BBT) to Sell

Zacks Investment Research downgraded shares of BB&T Corporation (NYSE:BBT) from a hold rating to a sell rating in a research note released on Tuesday morning.

According to Zacks, “BB&T’s shares have outperformed the industry over the past three months. The performance was supported by the company’s impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters. Strategic acquisitions are persistently supporting the company expand footprint as well as fuel additional profitability and consistent growth in loans and deposits along with higher rates should further lead to an increase in revenues. Nevertheless, escalating costs owing to acquisitions and subsequent integrations are expected to hurt the bank’s bottom-line growth. The company’s exposure to risky loans also continues to be a near-term concern. Further, a stretched valuation indicates limited upside potential for the stock.”

Other analysts have also recently issued reports about the company. BMO Capital Markets reiterated a hold rating and issued a $49.00 price objective on shares of BB&T Corporation in a research note on Friday, July 21st. BidaskClub upgraded BB&T Corporation from a hold rating to a buy rating in a research note on Tuesday, August 8th. Hilliard Lyons cut BB&T Corporation from a buy rating to a hold rating and set a $51.00 price objective on the stock. in a research note on Friday, July 21st. Wells Fargo & Company began coverage on BB&T Corporation in a research note on Wednesday, August 9th. They issued a market perform rating and a $44.00 price objective on the stock. Finally, Jefferies Group LLC reiterated a hold rating and issued a $49.00 price objective on shares of BB&T Corporation in a research note on Friday, July 14th. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and five have assigned a buy rating to the stock. The stock has a consensus rating of Hold and an average price target of $48.00.

BB&T Corporation (BBT) opened at 46.85 on Tuesday. The stock has a 50 day moving average price of $45.79 and a 200-day moving average price of $44.86. The stock has a market capitalization of $37.86 billion, a P/E ratio of 17.49 and a beta of 1.07. BB&T Corporation has a one year low of $37.40 and a one year high of $49.88.

BB&T Corporation (NYSE:BBT) last announced its quarterly earnings data on Thursday, July 20th. The insurance provider reported $0.77 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.77. The business had revenue of $2.86 billion for the quarter, compared to analysts’ expectations of $2.89 billion. BB&T Corporation had a return on equity of 9.62% and a net margin of 19.57%. The company’s revenue for the quarter was up 2.4% compared to the same quarter last year. During the same period last year, the firm earned $0.71 earnings per share. Analysts anticipate that BB&T Corporation will post $2.81 earnings per share for the current year.

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BB&T Corporation declared that its Board of Directors has initiated a stock repurchase program on Wednesday, June 28th that permits the company to buyback $1.88 billion in outstanding shares. This buyback authorization permits the insurance provider to reacquire up to 5.2% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

In other BB&T Corporation news, EVP William Rufus Yates sold 28,515 shares of the firm’s stock in a transaction dated Wednesday, July 26th. The stock was sold at an average price of $47.07, for a total transaction of $1,342,201.05. Following the transaction, the executive vice president now owns 34,887 shares of the company’s stock, valued at $1,642,131.09. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider David Hudson Weaver sold 8,752 shares of the firm’s stock in a transaction dated Wednesday, August 16th. The stock was sold at an average price of $46.91, for a total value of $410,556.32. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 55,610 shares of company stock worth $2,618,364. Corporate insiders own 0.36% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of BB&T Corporation by 2.4% during the second quarter. Vanguard Group Inc. now owns 55,519,721 shares of the insurance provider’s stock worth $2,521,151,000 after buying an additional 1,325,018 shares during the last quarter. BlackRock Inc. grew its holdings in shares of BB&T Corporation by 0.8% during the second quarter. BlackRock Inc. now owns 47,713,735 shares of the insurance provider’s stock worth $2,166,682,000 after buying an additional 381,915 shares during the last quarter. Macquarie Group Ltd. grew its holdings in shares of BB&T Corporation by 1.7% during the second quarter. Macquarie Group Ltd. now owns 17,133,475 shares of the insurance provider’s stock worth $778,031,000 after buying an additional 291,257 shares during the last quarter. First Eagle Investment Management LLC grew its holdings in shares of BB&T Corporation by 3.5% during the second quarter. First Eagle Investment Management LLC now owns 16,158,157 shares of the insurance provider’s stock worth $733,742,000 after buying an additional 539,533 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of BB&T Corporation by 0.3% during the first quarter. Bank of America Corp DE now owns 12,766,336 shares of the insurance provider’s stock worth $570,655,000 after buying an additional 43,867 shares during the last quarter. 64.25% of the stock is currently owned by institutional investors.

BB&T Corporation Company Profile

BB&T Corporation is a financial holding company. The Company conducts its business operations primarily through its bank subsidiary, Branch Banking and Trust Company (Branch Bank), and other nonbank subsidiaries. Its segments include Community Banking, Residential Mortgage Banking, Dealer Financial Services, Specialized Lending, Insurance Holdings and Financial Services.

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