United Bankshares Inc. [NASDAQ: UBSI] gained 2.50% or 0.64 points to close at $26.23 with a heavy trading volume of 5101639 shares. The company report on October 23, 2020 that United Bankshares, Inc. Announces Record Earnings for the Third Quarter of 2020.
United Bankshares, Inc. (NASDAQ: UBSI) (“United”), today reported earnings for the third quarter and the first nine months of 2020. Earnings for the third quarter of 2020 were a record $103.8 million, or $0.80 per diluted share, as compared to earnings of $66.0 million, or $0.65 per diluted share for the third quarter of 2019. Earnings for the first nine months of 2020 were $196.7 million, or $1.68 per diluted share, as compared to earnings of $196.8 million, or $1.93 per diluted share, for the first nine months of 2019.
Third quarter 2020 results produced an annualized return on average assets of 1.56%, an annualized return on average equity of 9.68% and an annualized return on average tangible equity of 16.94%, compared to annualized returns on average assets, average equity and average tangible equity of 1.33%, 7.79% and 14.16%, respectively, for the third quarter of 2019. For the nine months of 2020, United’s annualized return on average assets was 1.12%, the annualized return on average equity was 6.85% and the annualized return on average tangible equity was 12.19% compared to annualized returns on average assets, average equity and average tangible equity of 1.35%, 7.93% and 14.56%, respectively, for the first nine months of 2019.
It opened the trading session at $25.40, the shares rose to $26.34 and dropped to $25.40, the range by which the price of stock traded the whole day. The daily chart for UBSI points out that the company has recorded -7.93% loss over the past six months. However, it is still -33.35% lower than its most recent low trading price.
If we look at the average trading volume of 561.31K shares, UBSI reached to a volume of 5101639 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about United Bankshares Inc. [UBSI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UBSI shares is $30.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UBSI stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Boenning & Scattergood have made an estimate for United Bankshares Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 13, 2020. The new note on the price target was released on October 02, 2020, representing the official price target for United Bankshares Inc. stock. Previously, the target price had yet another raise to $28, while Piper Sandler analysts kept a Neutral rating on UBSI stock.
The Average True Range (ATR) for United Bankshares Inc. is set at 0.97, with the Price to Sales ratio for UBSI stock in the period of the last 12 months amounting to 4.29. The Price to Book ratio for the last quarter was 0.75, with the Price to Cash per share for the same quarter was set at 18.28.
Trading performance analysis for UBSI stock
United Bankshares Inc. [UBSI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.61. With this latest performance, UBSI shares gained by 18.15% in over the last four-week period, additionally sinking by -7.93% over the last 6 months – not to mention a drop of -33.66% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UBSI stock in for the last two-week period is set at 61.03, with the RSI for the last a single of trading hit 66.49, and the three-weeks RSI is set at 57.74 for United Bankshares Inc. [UBSI]. The present Moving Average for the last 50 days of trading for this stock 24.55, while it was recorded at 25.69 for the last single week of trading, and 27.16 for the last 200 days.
United Bankshares Inc. [UBSI]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and United Bankshares Inc. [UBSI] shares currently have an operating margin of +35.77. United Bankshares Inc.’s Net Margin is presently recorded at +28.61.
Return on Total Capital for UBSI is now 6.04, given the latest momentum, and Return on Invested Capital for the company is 6.21. Return on Equity for this stock inclined to 7.85, with Return on Assets sitting at 1.33. When it comes to the capital structure of this company, United Bankshares Inc. [UBSI] has a Total Debt to Total Equity ratio set at 67.60. Additionally, UBSI Total Debt to Total Capital is recorded at 40.33, with Total Debt to Total Assets ending up at 11.55. Long-Term Debt to Equity for the company is recorded at 40.94, with the Long-Term Debt to Total Capital now at 24.43.
Reflecting on the efficiency of the workforce at the company, United Bankshares Inc. [UBSI] managed to generate an average of $117,742 per employee.
United Bankshares Inc. [UBSI]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, United Bankshares Inc. posted 0.62/share EPS, while the average EPS was predicted by analysts to be reported at 0.61/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 1.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UBSI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for United Bankshares Inc. go to 8.00%.
An analysis of insider ownership at United Bankshares Inc. [UBSI]
There are presently around $2,244 million, or 67.30% of UBSI stock, in the hands of institutional investors. The top three institutional holders of UBSI stocks are: BLACKROCK INC. with ownership of 16,814,295, which is approximately 5.527% of the company’s market cap and around 0.80% of the total institutional ownership; VANGUARD GROUP INC, holding 12,433,537 shares of the stock with an approximate value of $326.13 million in UBSI stocks shares; and STATE STREET CORP, currently with $323.81 million in UBSI stock with ownership of nearly 33.505% of the company’s market capitalization.
Positions in United Bankshares Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 123 institutional holders increased their position in United Bankshares Inc. [NASDAQ:UBSI] by around 8,454,826 shares. Additionally, 160 investors decreased positions by around 9,774,940 shares, while 46 investors held positions by with 67,307,542 shares. The mentioned changes placed institutional holdings at 85,537,308 shares, according to the latest SEC report filing. UBSI stock had 37 new institutional investments in for a total of 831,822 shares, while 66 institutional investors sold positions of 5,866,883 shares during the same period.