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PNC Financial Rewards Shareholders With Share Buyback Plan


The PNC Financial Services Group’s PNC board of directors has announced an additional share repurchase program of up to $900 million through the end of second-quarter 2019. This comes in addition to the $2 billion share repurchase program that was approved by the Federal Reserve as part of 2018 capital plan.

Such repurchases may be made in the open market, in privately negotiated transactions, or otherwise. Also, the timing and amount of repurchases will depend on market conditions and other factors.

Apart from share repurchases, PNC Financial keeps rewarding shareholders with dividend hikes. Since 2011, it has been raising its dividend annually. From paying 10 cents a share as quarterly dividend during the financial crisis, the company has come a long way in terms of its capital strength. The most recent dividend hike was in July 2018, wherein the company raised its dividend by 27% (from 75 cents to 95 cents per share).

Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the bank’s fundamentals and growth opportunities.

Revenue Growth: PNC Financial continues to make steady progress toward improving its top line. A rising rate environment aids interest income growth. The company's fee income witnessed a five-year CAGR (2013–2017) of 1.3%, with the increasing trend continuing in first three quarters of 2018.

The company’s projected sales growth (F1/F0) of 5.3% indicates constant upward momentum in revenues.

Earnings Per Share Strength: PNC Financial witnessed earnings growth of 6% over the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 9.4% promises rewards for investors in the long run.

Further, earnings are anticipated to display an upswing in the near term with the company’s projected EPS growth (F1/F0) of 26.5%. Also, PNC Financial delivered an average positive earnings surprise of 3.3% over the trailing four quarters.

Share Price Movement: PNC Financial shares have gained 1.3% in the past year compared with 3.8% growth recorded by the industry.

Stocks to Consider

Citigroup C has witnessed 1.5% upward estimate revision over the past 30 days. Also, the company’s shares have risen nearly 26% in the past two years. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

JPMorgan Chase JPM has witnessed upward estimate revision of 1.1% over the past 30 days. Additionally, the stock has jumped more than 45% in two years’ time. It currently carries a Zacks Rank #2.

U.S. Bancorp USB Zacks Consensus Estimate for current-year earnings has been revised slightly upward over the past 30 days. Also, the company’s shares have risen nearly 11.2% in the past two years. It carries a Zacks Rank of 2, at present.

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