Zacks Investment Research cut shares of UBS (NYSE:UBS) from a hold rating to a strong sell rating in a report released on Tuesday morning.
According to Zacks, “Shares of UBS Group AG have underperformed the industry on the NYSE over the past three months. Though the company remains focused on building capital levels, global expansion and executing restructuring initiatives, its net interest income continues to remain under pressure due to persistent negative interest rates in the domestic economy. Also, strict regulatory framework is likely to keep costs elevated and impact profitability. Further, a considerable portion of its earnings continues to be affected by appreciation of the Swiss franc against other currencies. Moreover, a stretched valuation indicates limited upside potential in the stock.”
A number of other research firms have also commented on UBS. Barclays assumed coverage on shares of UBS in a research note on Tuesday, January 16th. They set an underweight rating for the company. Credit Suisse Group raised shares of UBS from a neutral rating to an outperform rating in a research report on Thursday, January 18th. JPMorgan Chase reissued a buy rating on shares of UBS in a research report on Wednesday, March 7th. Morgan Stanley reissued a buy rating on shares of UBS in a research report on Tuesday, February 13th. Finally, ValuEngine lowered shares of UBS from a buy rating to a hold rating in a research report on Monday, April 2nd. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and five have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average target price of $22.00.
UBS (NYSE:UBS) last posted its quarterly earnings data on Sunday, January 21st. The bank reported $0.17 EPS for the quarter. UBS had a net margin of 3.16% and a return on equity of 7.96%. The company had revenue of $7.31 billion during the quarter. sell-side analysts predict that UBS will post 1.7 EPS for the current year.
UBS announced that its board has initiated a share repurchase program on Monday, January 22nd that authorizes the company to repurchase shares. This repurchase authorization authorizes the bank to repurchase shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Dorsey & Whitney Trust CO LLC lifted its position in shares of UBS by 17.1% in the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 23,105 shares of the bank’s stock worth $425,000 after purchasing an additional 3,371 shares in the last quarter. Private Advisor Group LLC lifted its position in shares of UBS by 19.7% in the third quarter. Private Advisor Group LLC now owns 20,872 shares of the bank’s stock worth $356,000 after purchasing an additional 3,438 shares in the last quarter. Engineers Gate Manager LP lifted its position in shares of UBS by 2.1% in the third quarter. Engineers Gate Manager LP now owns 167,958 shares of the bank’s stock worth $2,880,000 after purchasing an additional 3,444 shares in the last quarter. Advisor Group Inc. lifted its position in shares of UBS by 21.6% in the fourth quarter. Advisor Group Inc. now owns 21,543 shares of the bank’s stock worth $396,000 after purchasing an additional 3,825 shares in the last quarter. Finally, US Bancorp DE lifted its position in shares of UBS by 11.5% in the fourth quarter. US Bancorp DE now owns 37,498 shares of the bank’s stock worth $690,000 after purchasing an additional 3,869 shares in the last quarter. 36.72% of the stock is owned by institutional investors and hedge funds.
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UBS Group AG, together with its subsidiaries, provides financial advice and solutions worldwide. It operates through five divisions: Wealth Management, Wealth Management Americas, Personal & Corporate Banking, Asset Management, and Investment Bank. The Wealth Management division offers advisory and financial services to wealthy private clients.
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