U.S. Bancorp (NYSE: USB) shares have advanced from $38 above $47 since the beginning of November, and the current price stands around $46.5. U.S. Bancorp’s board has approved the repurchase of up to $3B of the company’s outstanding common stock and the technical picture implies that the price may stabilize above $50 this January.
Fundamental analysis: Shares of this bank remain attractive for long-term oriented investors
U.S. Bancorp is an American bank holding company that provides banking, investment, mortgage, trust, and payment services products. According to analysts, banking stocks could rise at the beginning of the 2021 year as the Federal Reserve announced that it would allow share buybacks starting from January.
The biggest U.S. banks with enough capital to withstand losses would be permitted to pay out dividends and buy back stock on a limited basis. Following this Fed’s move, U.S. Bancorp’s board has approved the repurchase of up to $3B of the company’s outstanding common stock.
U.S. Bancorp is a stable bank with a good position in the market, and even with the COVID-19 pandemic, the business of this bank is going well.
U.S. Bancorp has reported Q3 results in October; total revenue has increased by 0.7% Y/Y to $5.96B while Q3 GAAP EPS was $0.99 (beats by $0.10). Total revenue has risen above the expectations (beats by $260M), and the bank has declared $0.42/share quarterly dividend which is in line with previous.
“Our mortgage banking business was particularly strong in the third quarter as we continued to support customers’ home financing and re-financing needs, and our payments businesses benefited from improving consumer spending activity as state and local economies continued to open,” said Andy Cecere, President & CEO.
The current dividend
