The only reason I can make sense of this is that the entire C-Suite is cashing in while the stock continues the sink and they’ll all ride off into the sunset as multi-millionaires after they’ve destroyed U.S. Bancorp.
1 reply
Apart from increasing costs, lack of diversification in loan portfolio amid an uncertain economy is likely to act as a headwind. Around 50.4% of USB’s loan portfolio comprises of commercial loans (commercial and commercial real estate lending) as of Jun 30.
Further, U.S. Bancorp continues to encounter investigations and lawsuits from the investors and regulators, leading to increased legal expenses and provisions in the near term.
Analysts also seem pessimistic regarding USB’s earnings growth prospects. The Zacks Consensus Estimate for 2023 and 2024 earnings has been revised marginally lower over the past seven days. USB currently carries a Zacks Rank #5 (Strong Sell).
Over the past six months, shares of USB have plunged 19.6% compared with the industry's decline of 5.7%.