Zacks Investment Research Upgrades TCF Financial (TCF) to Buy

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Zacks Investment Research upgraded shares of TCF Financial (NYSE:TCF) from a hold rating to a buy rating in a research report report published on Wednesday. Zacks Investment Research currently has $29.00 price target on the bank’s stock.

According to Zacks, “Shares of TCF Financial have outperformed the industry over the past six months. Also, the company has a decent earnings surprise history, surpassing the Zacks Consensus Estimate for earnings in two of the trailing four quarters. The company’s second-quarter 2018 earnings witnessed top-line strength. Furthermore, margin pressure seems to be easing. The quarter also witnessed continued rise in loans and deposits, along with lower provisions. The company’s increasing loans and strong deposit mix will likely continue to aid profitability. Also, it has been benefiting from improving credit quality in consumer real estate portfolio and has witnessed enhanced profitability ratios as well, which keeps us encouraged. However, TCF Financial’s revenues continue to be hurt by the persistently declining banking fees over the last few years. Nevertheless, its several ongoing initiatives, including digital strategy, remains a tailwind.”

TCF has been the topic of a number of other research reports. Royal Bank of Canada restated a buy rating and set a $27.00 target price on shares of TCF Financial in a research note on Tuesday, April 24th. DA Davidson cut shares of TCF Financial from a buy rating to a neutral rating in a research report on Thursday, May 3rd. They noted that the move was a valuation call. ValuEngine upgraded shares of TCF Financial from a buy rating to a strong-buy rating in a research report on Monday, April 23rd. Barclays lifted their price objective on shares of TCF Financial from $22.00 to $23.00 and gave the company an equal weight rating in a research report on Wednesday, April 11th. Finally, BMO Capital Markets cut shares of TCF Financial from an outperform rating to a market perform rating and set a $28.00 price objective on the stock. in a research report on Thursday, June 7th. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating and four have given a buy rating to the company. The stock has a consensus rating of Hold and an average target price of $25.71.

TCF Financial traded down $0.07, reaching $25.39, on Wednesday, according to MarketBeat.com. 968,987 shares of the stock were exchanged, compared to its average volume of 1,379,669. TCF Financial has a one year low of $14.58 and a one year high of $27.34. The stock has a market cap of $4.27 billion, a price-to-earnings ratio of 21.16, a PEG ratio of 1.68 and a beta of 1.04. The company has a current ratio of 1.01, a quick ratio of 1.00 and a debt-to-equity ratio of 0.67.

TCF Financial (NYSE:TCF) last released its earnings results on Friday, July 27th. The bank reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.03. TCF Financial had a net margin of 19.04% and a return on equity of 11.81%. The company had revenue of $364.90 million for the quarter, compared to analysts’ expectations of $361.56 million. During the same quarter last year, the business earned $0.33 EPS. The firm’s revenue was up 6.8% compared to the same quarter last year. sell-side analysts forecast that TCF Financial will post 1.84 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 4th. Stockholders of record on Wednesday, August 15th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 2.36%. The ex-dividend date is Tuesday, August 14th. TCF Financial’s payout ratio is currently 50.00%.

In other news, CFO Brian W. Maass sold 12,236 shares of TCF Financial stock in a transaction that occurred on Thursday, August 2nd. The shares were sold at an average price of $25.74, for a total transaction of $314,954.64. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 2.34% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in the company. Citigroup Inc. grew its holdings in shares of TCF Financial by 5.9% in the first quarter. Citigroup Inc. now owns 864,356 shares of the bank’s stock valued at $19,717,000 after purchasing an additional 47,771 shares in the last quarter. Mackay Shields LLC purchased a new position in TCF Financial during the first quarter worth $4,931,000. James Investment Research Inc. boosted its stake in TCF Financial by 1,136.0% during the second quarter. James Investment Research Inc. now owns 90,540 shares of the bank’s stock worth $2,229,000 after buying an additional 83,215 shares during the period. Foresters Investment Management Company Inc. boosted its stake in TCF Financial by 1.1% during the first quarter. Foresters Investment Management Company Inc. now owns 528,500 shares of the bank’s stock worth $12,055,000 after buying an additional 5,500 shares during the period. Finally, Principal Financial Group Inc. boosted its stake in TCF Financial by 9.0% during the first quarter. Principal Financial Group Inc. now owns 1,901,195 shares of the bank’s stock worth $43,366,000 after buying an additional 156,444 shares during the period. Hedge funds and other institutional investors own 85.32% of the company’s stock.

TCF Financial Company Profile

TCF Financial Corporation operates as the holding company for TCF National Bank that provides various financial products and services in the United States and Canada. It operates through Consumer Banking, Wholesale Banking, and Enterprise Services segments. The company offers checking, savings, and money market accounts; certificates of deposits; and individual retirement accounts.

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