|Bid||104.65 x 900|
|Ask||104.65 x 1300|
|Day's Range||102.59 - 104.86|
|52 Week Range||79.41 - 161.79|
|Beta (5Y Monthly)||1.26|
|PE Ratio (TTM)||9.73|
|Forward Dividend & Yield||4.60 (4.46%)|
|Ex-Dividend Date||Apr. 15, 2020|
|1y Target Est||N/A|
On May 15, some of the world's best investors -- including the "Oracle of Omaha," Warren Buffett himself -- had to file their quarterly 13F forms with the Securities and Exchange Commission. It offers a window into what top investors have been buying, selling, and leaving alone. Here are three stocks that top investors have recently been buying, and some reasons why you might want to do the same.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. sold off most of its Goldman Sachs Group Inc. stake, a longtime holding that slumped nearly 33% during the first quarter as the global pandemic roiled financial markets.The company cut its investment in JPMorgan Chase & Co. by 3% in the first quarter. Buffett’s company has been a big investor in banks in the past, normally trying to keep many of those stakes below a 10% level often scrutinized by regulators.Key InsightsThe Goldman Sachs holding plunged 84% to 1.92 million shares, an investment currently valued at around $330 million, Berkshire said Friday in a filing.Buffett’s company exited a bet on Travelers Cos. and a wager on Phillips 66, a holding that had been valued at more than $25 million at the end of the year. Buffett’s long had ties to the oil refiner, even agreeing in 2013 to swap some shares for full ownership of a pipeline-services business.Berkshire cut its investment in Amazon.com Inc. by just 0.7% in the first quarter. The Amazon wager was a newer bet, disclosed in 2019 ahead of Berkshire’s annual meeting. The retailer has warned that it’s been spending more to maintain operations during the pandemic, moves that could weigh on profit.Berkshire did end up boosting one bank bet with an increased stake in PNC Financial Services Group Inc. In recent years, Buffett’s company has built stakes in a range of U.S. lenders, including PNC and Bank of America Corp.Get MoreEarlier in May, Buffett announced that Berkshire had fully exited its investments in four major U.S. airlines.For more on Berkshire’s 13F, click here.For more on 13F Filings, click here for our TOPLive blog.(Updates with details on other investments starting in second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Deutsche Bank's (DB) plans to launch its first-ever green bond is reflective of its efforts to meet investors' expectations, regarding the ESG space.
PNC Financial Services Group (NYSE: PNC), the holding company of PNC Bank, grabbed headlines by announcing its intention to sell its roughly $17 billion stake in BlackRock (NYSE: BLK), the world's largest asset manager. The bank, which has $412 billion in assets, will conduct the sale of its 34.8 million common and preferred shares of BlackRock (22.4% ownership) through a registered offering and buyback. BlackRock has agreed to repurchase $1.1 billion worth of its stock from PNC upon completion of the offering.
(Bloomberg) -- The last financial crisis reordered the U.S. banking hierarchy, forcing weakened firms to sell themselves to rivals that remain dominant to this day. PNC Financial Services Group Inc. is getting ready in case it happens again.PNC’s decision to cash out roughly $14 billion in BlackRock Inc. shares will position the Pittsburgh-based bank to be a much more aggressive buyer than it was in 2008, when it snapped up a regional rival. The cash PNC is raising exceeds the market value of almost every bank in the country that’s smaller than it is. It will wield more money than the distressed prices Bear Stearns Cos. and Lehman Brothers Holdings Inc.’s brokerage fetched in 2008.Read more: Citizens, Comerica, Regions among banks seen as PNC targetsWhether the coronavirus pandemic will inflict enough carnage to create such unusual situations is a big unknown. But PNC Chief Executive Officer William Demchak’s announcement this week that he’s preparing for “opportunities that history has shown can arise in disrupted markets” has captured the attention of the industry -- stirring talk that not only is his bank on the hunt but that others should be getting ready too.“This move by PNC is probably sending investment bankers into a tizzy preparing deal pitches every which way,” Wells Fargo & Co. analyst Mike Mayo said. “PNC has a war chest.”The bank hasn’t elaborated on its plans beyond statements on the sale of BlackRock shares. There’s no deal currently in the works, according to a person with knowledge of the situation.The last crisis cemented two tiers atop the country’s banking industry: A group of international titans led by JPMorgan Chase & Co. -- which pulled further ahead by paying just a couple billion dollars to buy Bear Stearns -- and a cluster of large regional lenders such as PNC.In between was Wells Fargo, a large regional bank that snapped up troubled rival Wachovia Corp. to more than double in size, vault to the top spot in U.S. deposits and enter 15 new states. In the decade that followed, takeovers were relatively rare and too small to shake up the status quo. Then came last year’s $28 billion combination of BB&T Corp. and SunTrust Banks Inc. to form Truist Financial Corp.That deal was widely seen within the industry as the start of a new wave of mergers and acquisitions that would finally build regional banks into national players. But doubts that regulators would go along left other firms watching and waiting. Weeks after the marriage was finalized, headlines about a deadly new coronavirus began emerging from China. Now, PNC is anticipating a different type of consolidation.Across the financial industry, banks are in uncharted territory, waiting to see whether letting consumers put off payments on credit cards and mortgages will be all the help they need to eventually make good on their debts once government lockdowns ease. If that doesn’t work, firms could face a tsunami of souring loans within months.Regional banks including Ohio’s Fifth Third Bancorp and Keycorp, Rhode Island’s Citizens Financial Group Inc., Alabama’s Regions Financial Corp. and Texas’s Comerica Inc. have all lost more than 45% of their market value this year, making them cheaper already.Many PossibilitiesPNC will likely hold its capital “while it watches the U.S. economy reopen and sees how fast the economy can rebound,” according to Marty Mosby, an analyst at Vining Sparks. “Once PNC management feels like things are solidifying, it will likely push forward with an offer to acquire one of the super regional banks.”But PNC’s announcement this week leaves open the possibility that it could look in other directions, potentially building out operations or acquiring new technology.“The press release could not have been more blunt about PNC’s desire to buy distressed assets,” said Mayo. “But that category -- distressed assets -- could contain a wide range of banks, nonbanks, fintech, problem loans, et cetera, et cetera.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Equity capital markets bankers who won roles on PNC Financial Services Group Inc.’s massive share sale are set to make up some of the revenue they’ve lost out on this year from scrapped initial public offerings.PNC is set to raise roughly $14 billion after selling as much as 34.4 million shares in BlackRock Inc., according to a statement on Tuesday, confirming an earlier Bloomberg News report. PNC priced 28.8 million shares of the asset manager at $420 apiece in the offering, while BlackRock also agreed to buy about 2.7 million shares from PNC for $414.96 each, the statement said. Underwriters have an option to purchase up to 2.88 million additional BlackRock shares from PNC in the next 30 days.The sale prices represent a discount ranging from 7.6% to 8.7% from BlackRock’s closing price of $454.44 on Tuesday. PNC will exit its entire 22% holdings in BlackRock if the underwriters fully exercise the option to buy additional shares. Shares of BlackRock were down 1.9% in post-market trading.The deal will be a $140 million fee bonanza for its bankers that are hungry for deals after anticipated listings in the pipeline like Airbnb Inc. dried up. That is about 1% of the deal size.At $14 billion, the BlackRock stake sale is the largest equity offering in the U.S. since Alibaba Group Holding Ltd.’s $25 billion IPO in 2014, according to data compiled by Bloomberg. The Chinese e-commerce giant set aside about $260 million in fees for advisers at the time, the data shows.Morgan Stanley, Citigroup Inc. and Evercore Inc., the lead underwriters for PNC, are expected to split over half of the fee pool, people with knowledge of the matter have said, asking for anonymity discussing private matters. Bank of America Corp., JPMorgan Chase & Co., Barclays Plc and Credit Suisse Group AG have also been added to the deal in a more junior capacity, the people said.A filing is expected later this week detailing the fees and all the banks that received roles on the deal, the people added.A representative for PNC declined to comment, while a representative for Evercore couldn’t immediately be reached for comment. Representatives for Citi, Morgan Stanley, Bank of America, Barclays, JPMorgan and Credit Suisse declined to comment on the fee and their involvement.Sellers of marketed follow-on offerings, such as the BlackRock share sale, usually set aside about 1% to 2% of the deal for advisers’ fee. These deals complete more quickly than IPOs but the investment banks risk not being able to sell the whole trade.To be sure, IPO fees are still more lucrative. Companies usually set aside 5% to 7% of the size of the offering for its advisers.Fundraising volume for U.S. IPOs dropped 32% on a year-over-year basis. Companies including trusts and special purpose acquisition vehicles have raised a combined $18.4 billion this year versus $27.3 billion from the same period last year.(Update with confirmation from official statement throughout the story)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The S&P 500 dropped 2% on Tuesday as investors took profits following a warning from the top U.S. infectious disease expert that premature moves to reopen the nation's economy could lead to novel coronavirus outbreaks and set back economic recovery. The index suffered its first decline in four sessions as investors weighed the potential for a second wave of virus infections against hopes that easing of stay-at-home restrictions could ignite a recovery in the U.S. economy, which has been severely damaged by the virus. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, told Congress that the virus, which has already killed 80,000 Americans, was not yet under control and that there would not likely be a treatment or vaccine in place by late August or early September.
PNC Financial Services Group (NYSE: PNC) is selling its stake in BlackRock (NYSE: BLK), the world's largest asset manager with about $6.5 trillion in assets under management. PNC bought into BlackRock for $240 million in 1995, and with its 22.4% ownership stake (34.8 million shares), it's the company's largest shareholder.
(Bloomberg Opinion) -- If you didn’t know that Pittsburgh-based PNC Financial Services Group Inc. owned 22% of the world’s biggest asset manager, you do now. The U.S. regional bank says it’s selling its entire holding in BlackRock Inc., worth $17 billion. Both absolutely and relative to the size of the company, it’s a jaw-dropping transaction that raises questions about what the asset manager’s share register will look like in future.PNC has judged that it has better opportunities for its capital than continuing to ride the shift toward passive investing (and market gains) that BlackRock stock has provided. After diving to $327 apiece during the March coronavirus rout, BlackRock’s shares closed on Monday at $493 — just shy of their 2019 high. PNC doubtless doesn’t want to risk seeing another market correction when it can sell at these levels.But for such a longstanding holder to be disposing of its entire stake sends a negative signal — even if PNC simply sees crisis-driven acquisition opportunities in its backyard. It is in both PNC’s and BlackRock’s interests to work together to get this mammoth deal done. BlackRock is issuing a prospectus. This up-to-date snapshot of the business ought to provide investors some comfort that they know what they need to know. BlackRock will buy $1.1 billion of the offering — a sign that it’s confident in itself and a move that usually boosts earnings per share.It’s not clear whether the three investment banks involved — Citigroup Inc., Morgan Stanley and Evercore Inc. — have guaranteed PNC a specific price on the block, or whether the terms will be the result of indicative orders now being placed by investors. A hard underwriting commitment would be a brave thing in these markets, but there’s a price for everything.Either way, much of the legwork of this transaction will have been done already. It’s hard to believe the protagonists would have announced this move unless they’d lined up some interested parties, starting with existing shareholders. This is an opportunity to snap up a big stake in BlackRock without pushing up its share price while you’re doing the buying, as would happen when acquiring in the market. That the shares barely budged in out-of-hours trading suggests the stock market isn’t anticipating indigestion.The sale necessarily starts out as a collaborative process. But as PNC will not remain a shareholder, its obligations are primarily to its own investors. Its priority has to be getting the best price for this transaction. BlackRock’s needs are somewhat different: It will want a supportive and varied set of incoming shareholders and a stable share price once the deal is done. There’s still potential for the two sides’ aims to collide on a transaction this size.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- PNC Financial Services Group Inc. is cashing out one of the financial industry’s most lucrative bets, selling off its BlackRock Inc. stake. The move will bolster the bank amid the coronavirus pandemic and allow it to seize opportunities to grow if rivals stumble.The Pittsburgh-based lender announced plans Monday to unload its roughly $17 billion holding in the world’s largest asset manager through a public offering. PNC is BlackRock’s largest shareholder, a relationship that began about 25 years ago when the bank bought the business from Blackstone Group Inc. Steve Schwarzman, Blackstone’s leader, went on to say selling that division was “a heroic mistake.”The decision to exit the investment now surprised some analysts after PNC long credited its BlackRock holding with diversifying earnings. But with banks across the industry facing the prospect of loan defaults, executives at PNC are positioning for another bet: That the firm can better withstand the turmoil and potentially make a major acquisition, according to people with direct knowledge of its strategy.“The sale of BlackRock shares likely signals that PNC is looking to make a sizable deal during a period of market disruption,” which is consistent with its past behavior, said Kyle Sanders, an analyst at Edward Jones.He pointed to the firm’s takeover of National City Corp. during the 2008 crisis, and said it’s probably hoping for another opportunity -- “likely another regional bank.”PNC currently holds 22% of BlackRock’s outstanding shares. The bank will exit the stake through a public secondary offering with BlackRock buying back $1.1 billion of the shares directly from the firm. Morgan Stanley, Citigroup Inc. and Evercore ISI are joint bookrunners.Now is the right time to “unlock the value of our investment,” PNC Chief Executive Officer William Demchak, who is also on BlackRock’s board, said in a statement. The move enhances PNC’s balance sheet and will leave the company “very well-positioned to take advantage of potential investment opportunities that history has shown can arise in disrupted markets.”The decision was prompted in part by the widening gap between PNC’s market value and BlackRock’s, according to one person familiar with the bank’s thinking.Shares of BlackRock were down less than 2% this year by Monday’s close of trading, compared with a 36% drop for PNC. The broader S&P Regional Banks Select Industry Index has lost 40% of its value this year.BlackRock fell an additional 2.3% at 6:50 p.m. in extended New York trading after the announcement.Still, the disposal isn’t likely to dent BlackRock’s business, said Jefferies analyst Dan Fannon. “Given that the BlackRock-PNC relationship was more financial, we do not believe this will have an impact on BlackRock’s long-term competitive positioning and outlook,” he wrote in a note to clients.Back when PNC purchased BlackRock, it was a mortgage securities division of Blackstone with about $23 billion in assets. Over the years, the firm branched well beyond those origins. It made a well-timed move into index-based investments, and swelled as passive investing became more popular in the wake of the global financial crisis of 2008. BlackRock oversaw about $6.5 trillion at the end of March.The deal comes as U.S. companies grapple with the fallout from widespread lockdowns that forced businesses to shutter, leaving banks with worries about the quality of their outstanding loans to consumers, home buyers, local businesses and corporations.Even with this year’s selloff, PNC’s stock has more than doubled since the end of 2008, when it bought National City for about $5 billion. In that time, it has far outperformed the broader KBW Bank Index tracking 24 of the nation’s largest lenders.“The bolstered capital levels reinforces PNC as a safe-haven bank that stands ready to capitalize, in our view,” wrote Herman Chan, an analyst at Bloomberg Intelligence.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do...
Investing.com - PNC Financial (NYSE:PNC) reported on Wednesday first quarter earnings that missed analysts' forecasts and revenue that topped expectations.