U.S. Bancorp Stock Brushes Off Analyst Praise

The security sports an over 65% year-over-year lead

Digital Content Manager
Apr 8, 2021 at 11:03 AM
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The shares of U.S. Bancorp (NYSE:USB) are down 0.6% to trade at $56.47 at last check, despite J.P. Morgan Securities upgrading the equity to "overweight" from "neutral." The analyst in question said the company could greatly benefit from consumer spending recovering, as 16% of its total revenues comes from card-related fees. USB also earned a target-price hike from Compass Point to $59 from $52 earlier today. Separately, the bank named John C. Stern as president of U.S. Bank Global Corporate Trust and Custody. 

On the charts, U.S. Bancorp is within reach of its March 18, annual high of $57.02. The security has been getting support from the 20-day moving average since early February, which, alongside the $53 level, served as a net for shares during their March pullback. In the last nine months, USB has added 65.4%.

Analysts were skeptical towards the equity coming into today, with nine of the 15 in question carrying a tepid "hold" or worse rating, while six said "strong buy." Meanwhile, the 12-month consensus price target of $59.13 represents a 5.1% premium to the stock's current perch. 

That skepticism is echoed in the options pits, where puts are being picked up at a quicker-than-usual clip. This is per the equity's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 80th percentile of its annual range.

Now looks like a great time to weigh in on USB's next move with options. The security's Schaeffer's Volatility Index (SVI) of 31% stands in the 21st percentile of the past 12 months, meaning U.S. Bancorp stock sports affordably priced premiums at this time.

 

 

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