The PNC Financial Services Group, Inc. (PNC) Gets A Bearish Analyst View From Macquarie

Executive Vice President Reilly Robert Q sold 24,710 shares in The PNC Financial Services Group, Inc. (NYSE:PNC) for $107,763 in transaction occurred on 2018/09/14. After making this transaction, the Executive Vice President owns a direct stake of 3,471,508 shares, worth $13,934,834, as per the last closing price. On 2018/07/19 Lyons Michael P., Executive Vice President at PNC, dumped 14,000 shares at an average price of $140.87 per share. The selling total is valued at $16,143,190.

Separately, it had been reported that some other PNC insiders also took part of the insider trading activity. Director, Pfinsgraff Martin had invested in 700 shares for $1,050 through a trade on 2018/07/18. Following this activity, the insider holds 99,505 shares worth $135,776 as of recent close. Wall Street’s most bullish The PNC Financial Services Group, Inc. (NYSE:PNC) analysts are predicting the share price to blow past $173 per share during the next 12 months. The current median share price forecast by them is $149, suggesting that the stock could increase 15.23% in that time frame. The average price target of $149.39 calls for a nearly 15.53% increase in the stock price.

The PNC Financial Services Group, Inc. (PNC) trading activity significantly improved as the volume at ready counter increased to 3,199,298 shares versus 2,660,810 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,333,500 shares. The share price dropped -0.15% in recent trade and currently has a stock-market value of $60.13B. The shares finished at $129.31, after trading as low as $125.39 earlier in the session. It hit an intraday high Thursday at $129.51. The stock is now 10.95% above against its bear-market low of $116.55 on October 24, 2018. It has retreated -26.51% since it’s 52-week high of $163.59 reached in February. Now the market price is down -9.21% on the year and down -10.38% YTD.

PNC’s 50 day simple moving average (SMA 50) price is $131.44 and its 200-day simple moving average (SMA 200) price is $142.72. The company’s stock currently has a total float of 460.42M shares. Its weekly volatility is hovering around 3.15% and felt 2.43% volatility in price over a month. On the upside, the share price will test short term resistance at around $130.75. On a downside, the stock is likely to find some support, which begins at $126.63. The failure to get near-term support could push it to $123.95.

It had seen a negative analyst call from Macquarie, which downgraded the stock from Outperform to Neutral on November 27. Analysts at Bernstein, shed their negative views on October 15 by lifting it fromMkt Perform to Outperform. Brokerage firm Barclays, looks cautious as they stick to prior recommendation of Equal Weight, in a call on January 02. However, they did change the target price from $139 to $168.

When looking at valuations, The PNC Financial Services Group, Inc. (PNC) has a cheap P/E of 13.36x as compared to industry average of 18.6x. Moreover, it trades for 11.22 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.28x price/book and 4.99x price/sales. Compared to others, The PNC Financial Services Group, Inc. is in a different league with regards to profitability, having net margins of 48%. To put some perspective around this, the industry’s average net margin is 33.03%. PNC’s ROE is 12.3%, which is also considerably worse than the industry’s ROE of 16.94%.

Shares of The PNC Financial Services Group, Inc. (PNC) have dropped -1.6% since the company’s last earnings report. Over the past 12 fiscal quarters, The PNC Financial Services Group, Inc. (NYSE:PNC) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 1 quarters (8%), whereas at 0 occasion EPS met analyst expectations. PNC last reported earnings on October 12, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $2.82 per share, -20.56% change on the same period last year. That was better than consensus for $2.72. Revenue for the recent quarter stood at $4.36 billion, up 6% on last year and above the $4.35 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $4.3 billion to $4.47 billion, which should be compared with $4.4 billion generated last year. EPS is seen in a range of $2.69 to $2.86, against the $2.48 reported a year ago.