Virtus Investment Advisers Increases U.S. Bancorp Holdings by 18.3%

Virtus Investment Advisers LLC has increased its investment in U.S. Bancorp (NYSE: USB) by 18.3% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). Following the acquisition of an additional 5,382 shares, the firm now holds 34,713 shares of the financial services provider, valued at approximately $1.57 million.

Several other institutional investors have also adjusted their positions in U.S. Bancorp. Notably, Norges Bank acquired a new stake valued at around $971.3 million in the same quarter. Level Four Advisory Services LLC increased its holdings by 34.1%, bringing its total to 8,273 shares worth $374,000. Northwestern Mutual Wealth Management Co. raised its position by 6.7%, owning 227,511 shares valued at $10.30 million. Meanwhile, Grantham Mayo Van Otterloo & Co. LLC increased its stake by 3.7%, holding 16,569,422 shares valued at approximately $749.77 million. Korea Investment CORP also boosted its holdings by 16.6%, acquiring 1,411,243 shares worth around $63.86 million. Collectively, hedge funds and institutional investors control 77.60% of U.S. Bancorp’s stock.

In related news, U.S. Bancorp’s Executive Vice President, James L. Chosy, sold 26,909 shares on October 20, 2023, at an average price of $46.86, resulting in a total transaction value of $1.26 million. Following this transaction, Chosy retained 226,375 shares, valued at approximately $10.61 million, reflecting a 10.62% reduction in his ownership.

Additionally, Chairman Andrew Cecere sold 140,445 shares on the same day for an average price of $46.34, totaling $6.51 million. After this sale, Cecere held 1,360,414 shares, valued at about $63.04 million, marking a 9.36% decrease in his holdings. Company insiders, overall, own just 0.23% of U.S. Bancorp’s stock.

U.S. Bancorp’s stock experienced a slight increase of 0.2% recently. The company reported its quarterly earnings on October 16, 2023, revealing earnings per share (EPS) of $1.22, exceeding the consensus estimate of $1.11. The firm generated revenues of $7.34 billion, surpassing the projected $7.17 billion. U.S. Bancorp achieved a net margin of 16.89% and a return on equity of 13.34%, with revenues increasing by 6.8% year-over-year.

On October 15, 2023, U.S. Bancorp announced a quarterly dividend of $0.52, up from the previous $0.50. This dividend, payable to investors on record as of September 30, 2023, represents an annualized amount of $2.08 and yields 4.2%. The company currently maintains a payout ratio of 47.60%.

Market analysts have responded positively to U.S. Bancorp’s performance. Reports indicate that Morgan Stanley reaffirmed a “positive” rating for the stock, while The Goldman Sachs Group set a target price of $52.00 with a “neutral” rating. Evercore ISI raised its price objective from $49.00 to $54.00, while Deutsche Bank Aktiengesellschaft upgraded the stock from “hold” to “buy,” setting a target price of $52.50. UBS Group also increased its target from $49.00 to $50.00.

Overall, U.S. Bancorp’s stock is rated “Moderate Buy” with a consensus target price of $54.45, indicating a favorable outlook among analysts. The company, a significant player in the financial services sector, provides a range of services to individuals, businesses, and government entities across the United States.