Reassessing The Changing Outlook For People’s United Financial Inc. (PBCT)


    SSgA Funds Management, Inc. recently announced the acquisition of new stake in People’s United Financial Inc. (NASDAQ:PBCT). The institutional investor has increased its shareholding in the Financial company by 6.83% to 50.65 million shares with purchase of 3.24 million shares. This fresh investment now brings its stake to 11.93% valued currently at $546.53 million. In addition, Dimensional Fund Advisors LP raised its holdings by 25349.0 to 11.04 million shares. And Invesco Capital Management LLC has lifted its position by 5.17% or 0.47 million shares – to 9.49 million shares.

    With over 3.8 million People’s United Financial Inc. (PBCT) shares trading Tuesday and a closing price of $10.56 on the day, the dollar volume was approximately $40.13 million. The shares have shown a negative weekly performance of -2.31% and its price on 09/01/20 lost nearly -0.19%. Currently, there are 417.90M common shares owned by the public and among those 415.57M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for PBCT have a consensus price objective of $12.23. The analysts have set the share’s price value over the next 12 months at a high of $13.50 and a low of $10.50 should the stock experience a downside. Incidentally, analysts’ outlook for the People’s United Financial Inc. stock is 2.90 for the next 12 months. The average price target is 13.65% above its last price level and an upside to the estimated low will see the stock lose -0.57% over that period. But an upside of 21.78% will see the stock hit the forecast high price target while mean target price for the stock is $12.50.

    Insiders at the company have transacted a total of 76 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 49 of these insider trades were purchases, accounting for 823,496 shares. Insider sales of the common stock occurred on 27 occasions, with total insider shares sold totaling 501,561 shares.

    The top 3 mutual fund holders in People’s United Financial Inc. are SPDR S&P Dividend ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. SPDR S&P Dividend ETF owns 25.22 million shares of the company’s stock, all valued at over $272.16 million. The company sold 7730.0 shares recently to bring their total holdings to about 5.94% of the shares outstanding. Vanguard Total Stock Market Index sold 6442.0 shares to see its total holdings shrink to 12.04 million shares valued at over $129.91 million and representing 2.84% of the shares outstanding. Vanguard Small Cap Index Fund sold 76223.0 shares to bring its total holdings to over 10.55 million shares at a value of $113.87 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.49% of the shares outstanding.

    Shares of People’s United Financial Inc. (NASDAQ: PBCT) opened at $10.55, down -$0.03 from a prior closing price of $10.58. However, the script later closed the day at $10.56, down -0.19%. The company’s stock has a 5-day price change of -2.31% and -13.37% over the past three months. PBCT shares are trading -37.51% year to date (YTD), with the 12-month market performance down to -25.95% lower. It has a 12-month low price of $9.37 and touched a high of $17.22 over the same period. Currently, 3.8 million shares have been traded, compared to an average intraday trading volume of 4.27 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -3.38%, -5.35%, and -20.65% respectively.

    Institutional ownership of People’s United Financial Inc. (NASDAQ: PBCT) shares accounts for 77.80% of the company’s 417.90M shares outstanding. Mutual fund holders own 29.51%, while other institutional holders and individual stakeholders account for 47.24% and 1.90% respectively.

    It has a market capitalization of $4.50B and a beta (3y monthly) value of 1.19. The stock’s trailing 12-month PE ratio is 9.19, while the earnings-per-share (ttm) stands at $1.15. The company has a PEG of 0.67 and the debt-to-equity ratio at 0.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.80% over the week and 3.25% over the month.

    Analysts forecast that People’s United Financial Inc. (PBCT) will achieve an EPS of $0.29 for the current quarter, $0.26 for the next quarter and $0.96 for 2021. The lowest estimate earnings-per-share for the quarter is $0.24 while analysts give the company a high EPS estimate of $0.37. Comparatively, EPS for the current quarter was $0.34 a year ago. Earnings per share for the fiscal year are expected to increase by 0.80%, and -12.64% over the next financial year. EPS should grow at an annualized rate of 13.73% over the next five years, compared to 8.70% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate People’s United Financial Inc. (PBCT) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 13 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the PBCT, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Sector Perform rating for the stock in a research note on June 24, 2020, with the firm’s price target at $14. Compass Point coverage for the People’s United Financial Inc. (PBCT) stock in a research note released on April 14, 2020 offered a Neutral rating with a price target of. DA Davidson was of a view on January 17, 2020 that the stock is Neutral, while Raymond James gave the stock Mkt Perform rating on November 26, 2019, issuing a price target of. Stephens on their part issued Equal-Weight rating on October 29, 2019.


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