On March 16, 2023 at 13:11:39 ET an unusually large $2,397.00K block of Call contracts in First Republic Bank (FRC) was sold, with a strike price of $22.50 / share, expiring in 1 days (on March 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.44 sigmas above the mean, placing it in the 98.17 percentile of all recent large trades made in FRC options.

This trade was first picked up on Fintel’s real time Unusual Option Trades tool, where unusual option trades are highlighted.

Analyst Price Forecast Suggests 371.82% Upside

As of March 16, 2023, the average one-year price target for First Republic Bank is $147.02. The forecasts range from a low of $97.97 to a high of $194.25. The average price target represents an increase of 371.82% from its latest reported closing price of $31.16.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for First Republic Bank is $6,050MM, an increase of 5.07%. The projected annual non-GAAP EPS is $7.13.

What is the Fund Sentiment?

There are 1493 funds or institutions reporting positions in First Republic Bank. This is an increase of 54 owner(s) or 3.75% in the last quarter. Average portfolio weight of all funds dedicated to FRC is 0.34%, a decrease of 10.57%. Total shares owned by institutions increased in the last three months by 3.32% to 210,935K shares. The put/call ratio of FRC is 0.87, indicating a bullish outlook.

What are Large Shareholders Doing?

Capital International Investors holds 10,243K shares representing 5.50% ownership of the company. In it’s prior filing, the firm reported owning 12,204K shares, representing a decrease of 19.14%. The firm decreased its portfolio allocation in FRC by 27.88% over the last quarter.

Alecta Pensionsforsakring, Omsesidigt holds 7,116K shares representing 3.82% ownership of the company. In it’s prior filing, the firm reported owning 6,616K shares, representing an increase of 7.03%. The firm decreased its portfolio allocation in FRC by 2.77% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 5,559K shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 5,441K shares, representing an increase of 2.12%. The firm decreased its portfolio allocation in FRC by 11.91% over the last quarter.

Royal Bank Of Canada holds 5,535K shares representing 2.97% ownership of the company. In it’s prior filing, the firm reported owning 5,659K shares, representing a decrease of 2.25%. The firm decreased its portfolio allocation in FRC by 16.82% over the last quarter.

Select Equity Group holds 5,005K shares representing 2.69% ownership of the company. In it’s prior filing, the firm reported owning 5,262K shares, representing a decrease of 5.15%. The firm decreased its portfolio allocation in FRC by 4.25% over the last quarter.

First Republic Bank Declares $0.27 Dividend

On January 13, 2023 the company declared a regular quarterly dividend of $0.27 per share ($1.08 annualized). Shareholders of record as of January 26, 2023 received the payment on February 9, 2023. Previously, the company paid $0.27 per share.

At the current share price of $31.16 / share, the stock’s dividend yield is 3.47%. Looking back five years and taking a sample every week, the average dividend yield has been 0.69%, the lowest has been 0.40%, and the highest has been 3.46%. The standard deviation of yields is 0.23 (n=237).

The current dividend yield is 12.12 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.12. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.42%, demonstrating that it has increased its dividend over time.

First Republic Bank Background Information
(This description is provided by the company.)

Founded in 1985, First Republic and its subsidiaries offer private banking, private business banking and private wealth management, including investment, trust and brokerage services. First Republic specializes in delivering exceptional, relationship-based service and offers a complete line of products, including residential, commercial and personal loans, deposit services, and wealth management. Services are offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach and San Diego, California; Portland, Oregon; Boston, Massachusetts; Palm Beach, Florida; Greenwich, Connecticut; New York, New York; and Jackson, Wyoming. First Republic is a constituent of the S&P 500 Index and KBW Nasdaq Bank Index.

This article originally appeared on Fintel

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