Virtus Investment Advisers Increases Stake in U.S. Bancorp by 18.3%

Virtus Investment Advisers LLC has significantly increased its investment in U.S. Bancorp (NYSE: USB) by 18.3% during the second quarter of 2023. This information comes from the firm’s latest filing with the Securities and Exchange Commission (SEC). After acquiring an additional 5,382 shares, Virtus now holds a total of 34,713 shares in the financial services provider, valued at approximately $1.57 million.

The surge in Virtus Investment’s shareholding is part of a larger trend among institutional investors and hedge funds, many of whom have recently adjusted their positions in U.S. Bancorp. Notably, Norges Bank established a new position in the company during the same quarter, with an investment valued at about $971 million. Additionally, Level Four Advisory Services LLC raised its stake by 34.1%, now owning 8,273 shares worth around $374,000. Other firms like Northwestern Mutual Wealth Management Co. and Grantham Mayo Van Otterloo & Co. LLC have also increased their holdings in U.S. Bancorp.

The collective impact of these investments is notable, with hedge funds and institutional investors currently owning approximately 77.60% of U.S. Bancorp’s stock.

Recent Insider Trading Activity

In addition to institutional investments, recent insider trading has drawn attention. On October 20, 2023, Executive Vice President James L. Chosy sold 26,909 shares of U.S. Bancorp, with a total transaction value of $1,260,955.74. Following this sale, Chosy retains 226,375 shares valued at about $10.6 million, marking a 10.62% reduction in his ownership.

Chairman Andrew Cecere also sold a significant number of shares on the same day, offloading 140,445 shares for approximately $6.51 million. Post-transaction, he holds 1,360,414 shares, valued at around $63 million, which is a 9.36% decrease in his stake. Company insiders now collectively own 0.23% of the firm’s stock.

Financial Performance and Dividend Growth

U.S. Bancorp recently reported its quarterly earnings, revealing an earnings per share (EPS) of $1.22 for the third quarter, surpassing analysts’ expectations of $1.11 by $0.11. The company generated $7.34 billion in revenue, exceeding the anticipated $7.17 billion. This performance reflects a year-over-year revenue increase of 6.8%, compared to $1.03 EPS in the same quarter last year.

In a positive move for shareholders, U.S. Bancorp declared a quarterly dividend of $0.52, up from the previous $0.50. This dividend was paid on October 15, 2023, to investors who were on record as of September 30. The annualized dividend now stands at $2.08, yielding 4.2% with a payout ratio of 47.60%.

Wall Street analysts remain optimistic about U.S. Bancorp’s prospects. Several firms have issued reports affirming positive ratings. Morgan Stanley reaffirmed a “positive” rating, while The Goldman Sachs Group set a target price of $52.00 with a “neutral” rating. Evercore ISI raised its price objective to $54.00, and UBS Group increased its target from $49.00 to $50.00. Overall, analysts maintain an average rating of “Moderate Buy” for U.S. Bancorp, with a consensus target price of $54.45.

U.S. Bancorp continues to position itself as a robust player in the financial services sector, providing a range of services to individuals, businesses, and institutions across the United States.