The PNC Financial Services Group, Inc. (NYSE:PNC) Plans Dividend Increase – $1.60 Per Share

The PNC Financial Services Group, Inc. (NYSE:PNC) declared a quarterly dividend on Tuesday, July 2nd, Wall Street Journal reports. Stockholders of record on Monday, July 15th will be given a dividend of 1.60 per share by the financial services provider on Monday, August 5th. This represents a $6.40 annualized dividend and a dividend yield of 4.06%. The ex-dividend date of this dividend is Monday, July 15th. This is a boost from The PNC Financial Services Group’s previous quarterly dividend of $1.55.

The PNC Financial Services Group has increased its dividend by an average of 9.9% per year over the last three years and has increased its dividend every year for the last 13 years. The PNC Financial Services Group has a payout ratio of 43.3% indicating that its dividend is sufficiently covered by earnings. Analysts expect The PNC Financial Services Group to earn $14.18 per share next year, which means the company should continue to be able to cover its $6.20 annual dividend with an expected future payout ratio of 43.7%.

The PNC Financial Services Group Stock Performance

Shares of NYSE PNC traded down $1.05 during mid-day trading on Wednesday, hitting $157.79. The company had a trading volume of 914,084 shares, compared to its average volume of 1,885,177. The stock has a market cap of $62.79 billion, a price-to-earnings ratio of 13.33, a PEG ratio of 2.22 and a beta of 1.15. The firm’s 50 day simple moving average is $155.21 and its two-hundred day simple moving average is $153.02. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.85 and a quick ratio of 0.85. The PNC Financial Services Group has a 12 month low of $109.40 and a 12 month high of $162.24.

The PNC Financial Services Group (NYSE:PNC) last announced its quarterly earnings results on Tuesday, April 16th. The financial services provider reported $3.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.09 by $0.01. The PNC Financial Services Group had a net margin of 16.05% and a return on equity of 11.64%. The company had revenue of $5.15 billion during the quarter, compared to the consensus estimate of $5.19 billion. During the same quarter in the previous year, the company posted $3.98 earnings per share. The company’s revenue for the quarter was down 8.2% compared to the same quarter last year. As a group, equities research analysts forecast that The PNC Financial Services Group will post 12.63 earnings per share for the current year.

Analysts Set New Price Targets

Several research firms have recently issued reports on PNC. Wells Fargo & Company increased their price target on The PNC Financial Services Group from $185.00 to $194.00 and gave the stock an “overweight” rating in a research note on Thursday, March 28th. The Goldman Sachs Group upped their price target on shares of The PNC Financial Services Group from $151.00 to $168.00 and gave the company a “neutral” rating in a report on Monday, April 1st. Keefe, Bruyette & Woods restated an “underperform” rating and issued a $152.00 price target on shares of The PNC Financial Services Group in a research report on Wednesday, April 17th. Jefferies Financial Group boosted their target price on The PNC Financial Services Group from $162.00 to $164.00 and gave the stock a “hold” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. decreased their price objective on shares of The PNC Financial Services Group from $163.50 to $163.00 and set an “overweight” rating for the company in a research note on Wednesday, May 1st. Two analysts have rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, The PNC Financial Services Group currently has a consensus rating of “Hold” and an average price target of $158.56.

Insider Activity at The PNC Financial Services Group

In other news, EVP Richard Kevin Bynum sold 850 shares of the firm’s stock in a transaction dated Tuesday, May 7th. The stock was sold at an average price of $155.87, for a total transaction of $132,489.50. Following the completion of the sale, the executive vice president now directly owns 3,502 shares of the company’s stock, valued at approximately $545,856.74. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, EVP Richard Kevin Bynum sold 850 shares of the stock in a transaction on Tuesday, May 7th. The shares were sold at an average price of $155.87, for a total transaction of $132,489.50. Following the transaction, the executive vice president now owns 3,502 shares in the company, valued at approximately $545,856.74. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO William S. Demchak sold 641 shares of The PNC Financial Services Group stock in a transaction on Friday, June 28th. The shares were sold at an average price of $153.08, for a total transaction of $98,124.28. Following the completion of the sale, the chief executive officer now directly owns 567,682 shares of the company’s stock, valued at approximately $86,900,760.56. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,132 shares of company stock valued at $328,809. Insiders own 0.42% of the company’s stock.

About The PNC Financial Services Group

The PNC Financial Services Group, Inc operates as a diversified financial services company in the United States. It operates through three segments: Retail Banking, Corporate & Institutional Banking, and Asset Management Group segments. The company's Retail Banking segment offers checking, savings, and money market accounts, as well as time deposit; residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans, and personal and small business loans and lines of credit; and brokerage, insurance, and investment and cash management services.