Unusual Put Option Trade in US Bancorp Worth $716.15K

On May 11, 2023 at 09:50:20 ET an unusually large $716.15K block of Put contracts in U.S. Bancorp (USB) was sold, with a strike price of $35.00 / share, expiring in 8 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.40 sigmas above the mean, placing it in the 99.97th percentile of all recent large trades made in USB options.

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

What is the Fund Sentiment?

There are 2643 funds or institutions reporting positions in U.S. Bancorp. This is an increase of 58 owner(s) or 2.24% in the last quarter. Average portfolio weight of all funds dedicated to USB is 0.52%, an increase of 24.02%. Total shares owned by institutions increased in the last three months by 3.95% to 1,319,663K shares. The put/call ratio of USB is 1.64, indicating a bearish outlook.

Analyst Price Forecast Suggests 53.20% Upside

As of May 10, 2023, the average one-year price target for U.S. Bancorp is 45.12. The forecasts range from a low of 32.32 to a high of $70.35. The average price target represents an increase of 53.20% from its latest reported closing price of 29.45.

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

The projected annual revenue for U.S. Bancorp is 29,557MM, an increase of 26.32%. The projected annual non-GAAP EPS is 5.10.

What are Other Shareholders Doing?

Jpmorgan Chase holds 55,311K shares representing 3.61% ownership of the company. In it’s prior filing, the firm reported owning 59,026K shares, representing a decrease of 6.72%. The firm decreased its portfolio allocation in USB by 91.18% over the last quarter.

MUFG Bank holds 44,374K shares representing 2.89% ownership of the company.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 42,905K shares representing 2.80% ownership of the company. In it’s prior filing, the firm reported owning 39,850K shares, representing an increase of 7.12%. The firm increased its portfolio allocation in USB by 7.54% over the last quarter.

Price T Rowe Associates holds 32,757K shares representing 2.14% ownership of the company. In it’s prior filing, the firm reported owning 3,236K shares, representing an increase of 90.12%. The firm increased its portfolio allocation in USB by 975.19% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 31,257K shares representing 2.04% ownership of the company. In it’s prior filing, the firm reported owning 30,650K shares, representing an increase of 1.94%. The firm increased its portfolio allocation in USB by 1.62% over the last quarter.

U.S. Bancorp Declares $0.48 Dividend

On March 14, 2023 the company declared a regular quarterly dividend of $0.48 per share ($1.92 annualized). Shareholders of record as of March 31, 2023 received the payment on April 17, 2023. Previously, the company paid $0.48 per share.

At the current share price of $29.45 / share, the stock’s dividend yield is 6.52%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.52%, the lowest has been 2.33%, and the highest has been 6.46%. The standard deviation of yields is 0.81 (n=237).

The current dividend yield is 3.69 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.49. 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 0.14%, demonstrating that it has increased its dividend over time.

U.S. Bancorp. Background Information
(This description is provided by the company.)

U.S. Bancorp, with nearly 70,000 employees and $554 billion in assets as of Dec. 31, 2020, is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The Minneapolis-based bank blends its relationship teams, branches and ATM network with mobile and online tools that allow customers to bank how, when and where they prefer. U.S. Bank is committed to serving its millions of retail, business, wealth management, payment, commercial and corporate, and investment services customers across the country and around the world as a trusted financial partner, a commitment recognized by the Ethisphere Institute naming the bank one of the 2020 World’s Most Ethical Companies.

See all U.S. Bancorp regulatory filings.

This article originally appeared on Fintel

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