United Community Banks Receives Sell Rating Upgrade by StockNews.com

United Community Banks, Inc. UCBI has been upgraded to a "sell" rating by equity researchers at StockNews.com in a report issued to clients and investors on Friday. This revision represents a critical perspective on the bank's stock from the financial research firm which monitors various equities including those in the banking sector. The change follows several other analyses by different firms that have provided varying recommendations for United Community Banks.

Previously, Stephens increased their price target on United Community Banks from $31.00 to $33.00 and bestowed the company with an "overweight" rating. Conversely, DA Davidson lowered their price target from $31.50 to $30.00 while maintaining a "buy" rating. Ratings from Keefe, Bruyette & Woods shifted from an "outperform" rating to a "market perform" rating with a reduced target price of $30.00, down from $33.00. Piper Sandler also revised their outlook, moving from an "overweight" to a "neutral" rating and cutting their target price from $31.00 to $27.00. Truist Financial similarly reduced their price target on United Community Banks UCBI from $30.00 to $26.00, opting for a "hold" rating on the stock.

As it stands, United Community Banks holds a consensus rating of "Hold" and an average price target of $29.20, amalgamating views from various analysts and research institutions.

United Community Banks Stock Performance and Fundamentals

The shares of United Community Banks UCBI opened at $22.98 with the stock experiencing minor fluctuations. The company's 52-week range reveals a low of $20.37 and a high of $39.50, shedding light on the stock's volatility within that period. The 50-day moving average price is established at $24.60, while the 200-day moving average comes in at $25.39, which help investors in gauging the stock's momentum.

In terms of financial health, the bank shows a debt-to-equity ratio of 0.10, along with a current ratio and a quick ratio both at 0.80, indicating liquidity positions. The market capitalization currently stands at $2.73 billion with a P/E ratio of 10.54 and a beta of 1.01, signifying the stock's reactivity in relation to the market.

Earnings Highlights and Institutional Investment

In its recent earnings report, United Community Banks disclosed a quarterly EPS of $0.45, exceeding by a cent the consensus estimate of $0.44. The return on equity recorded was 9.33%, alongside a net margin of 20.05%. Revenues were reported at $355.12 million versus the expected $246.45 million. Compared to the same quarter in the previous year, the company had generated an EPS of $0.75, indicating a change in performance over time.

Hedge Funds and Institutional Holdings

United Community Banks has seen varied activity from hedge funds and institutional investors. Eagle Bay Advisors LLC increased its stake by 97.5%, now owning 960 shares valued at approximately $29,000. Beacon Capital Management LLC initiated a new position, investing around $26,000 in the firm. Belpointe Asset Management LLC, on the other hand, grew its shareholdings by 113.1%, currently with 1,385 shares worth nearly $39,000. Notable new investments include Carmel Capital Partners LLC's purchase valued at approximately $36,000, and State of Wyoming's 25.9% stake increase to 1,898 shares, worth about $47,000. Overall, institutional investors and hedge funds claim ownership of 80.99% of United Community Banks' equity.

Company Profile and Services

United Community Banks, Inc. functions as the financing holding entity for United Community Bank, which caters to a broad customer base including commercial, retail, government, education, energy, health care, and real estate sectors. Headquartered in Blairsville, Georgia, the company provides various banking products and services. Tailored deposit products offered include checking, savings, money market, and various types of deposit accounts that meet the diverse financial needs of its client base.

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