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US Bancorp vice chair Shailesh Kotwal sells $1.74 million in stock

Published 22/10/2024, 07:48 am
USB
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MINNEAPOLIS—Shailesh M. Kotwal, Vice Chair of US Bancorp (NYSE:USB), recently sold 35,000 shares of the company's common stock. The shares were sold at a weighted average price of $49.744 per share, amounting to a total transaction value of approximately $1.74 million. Following this transaction, Kotwal retains ownership of 136,076 shares in the company. The sale was executed on October 17, according to the SEC filing.

In other recent news, U.S. Bancorp has been the subject of various financial firms' attention due to its robust earnings and revenue results. The company reported earnings per share (EPS) of $1.03 in both Q3 and Q4 of 2023, with total net revenue reaching $6.9 billion in Q3 2024. This strong financial performance has led to several firms adjusting their price targets for U.S. Bancorp. DA Davidson, Oppenheimer, Baird, RBC Capital Markets, and Stephens increased their targets to $54, $59, $54, $53, and $52 respectively, while JP Morgan maintained a neutral stance with a consistent $48 target.

U.S. Bancorp's third-quarter results showed growth in net interest income (NII), driven by net interest margin (NIM) expansion. However, the bank's fee income showed signs of weakness. The bank is expected to maintain stable NII in the fourth quarter. U.S. Bancorp has clarified its strategic focus on organic growth, forgoing large bank mergers and acquisitions.

The company has announced plans for modest share buybacks and continues to invest in technology, including AI initiatives, to support future growth. Successful partnerships with State Farm and Edward Jones are also expected to contribute to the company's growth trajectory. These are recent developments for U.S. Bancorp.

InvestingPro Insights

As U.S. Bancorp's Vice Chair Shailesh M. Kotwal reduces his stake, investors might find it valuable to consider additional context from InvestingPro's data and tips. The bank's current market capitalization stands at $74.75 billion, reflecting its significant presence in the financial sector.

U.S. Bancorp's P/E ratio of 14.66 suggests a relatively modest valuation compared to some peers in the banking industry. This valuation metric aligns with an InvestingPro Tip highlighting that U.S. Bancorp is a "Prominent player in the Banks industry." The company's price-to-book ratio of 1.44 further supports this assessment, indicating that the stock may be reasonably priced relative to its book value.

Investors seeking income might be particularly interested in U.S. Bancorp's dividend profile. The bank boasts a dividend yield of 4.07%, which is attractive in the current interest rate environment. More impressively, an InvestingPro Tip reveals that U.S. Bancorp "Has raised its dividend for 13 consecutive years" and "Has maintained dividend payments for 54 consecutive years." This long-standing commitment to shareholder returns could be reassuring for those concerned about the recent insider sale.

Despite the insider transaction, U.S. Bancorp's financial performance remains solid. The company reported a revenue of $24.9 billion over the last twelve months, with an operating income margin of 31.46%. An InvestingPro Tip notes that the company has been "Profitable over the last twelve months," which is crucial for maintaining its dividend track record and overall financial health.

It's worth noting that U.S. Bancorp has demonstrated strong price performance, with a 66.42% total return over the past year. This impressive gain suggests that the market has been optimistic about the bank's prospects, despite challenges in the broader banking sector.

For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 8 more tips available for U.S. Bancorp, providing a deeper understanding of the company's financial position and market outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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