UBS Group (NYSE:UBS) Shares Gap Down Following Weak Earnings

UBS Group AG (NYSE:UBS) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $34.94, but opened at $32.94. UBS Group shares last traded at $32.63, with a volume of 2,196,391 shares changing hands.

The bank reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.31 by ($0.08). The company had revenue of $11.06 billion during the quarter, compared to analyst estimates of $10.90 billion. UBS Group had a return on equity of 4.69% and a net margin of 5.13%. The company’s revenue was up 1.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.09) earnings per share.

UBS Group Increases Dividend

The company also recently declared an annual dividend, which will be paid on Thursday, April 17th. Shareholders of record on Wednesday, April 16th will be paid a dividend of $0.90 per share. This is a positive change from UBS Group’s previous annual dividend of $0.23. This represents a yield of 2.1%. The ex-dividend date is Wednesday, April 16th. UBS Group’s dividend payout ratio (DPR) is presently 19.17%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. StockNews.com downgraded UBS Group from a “buy” rating to a “hold” rating in a research note on Wednesday, January 22nd. BNP Paribas upgraded shares of UBS Group from a “neutral” rating to an “outperform” rating in a research report on Friday, January 3rd. Finally, Kepler Capital Markets upgraded shares of UBS Group from a “hold” rating to a “buy” rating in a research report on Friday, January 10th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy”.

Hedge Funds Weigh In On UBS Group

A number of hedge funds have recently modified their holdings of UBS. Berbice Capital Management LLC acquired a new position in UBS Group in the 4th quarter worth approximately $27,000. Versant Capital Management Inc acquired a new stake in shares of UBS Group during the 4th quarter valued at about $40,000. Kohmann Bosshard Financial Services LLC acquired a new stake in UBS Group in the fourth quarter valued at approximately $41,000. Continuum Advisory LLC increased its position in UBS Group by 41.6% during the third quarter. Continuum Advisory LLC now owns 1,532 shares of the bank’s stock worth $49,000 after buying an additional 450 shares during the last quarter. Finally, FSC Wealth Advisors LLC acquired a new position in shares of UBS Group during the 3rd quarter valued at about $71,000.

UBS Group Price Performance

The firm has a market capitalization of $104.64 billion, a price-to-earnings ratio of 27.20 and a beta of 1.16. The stock’s 50 day moving average price is $32.45 and its two-hundred day moving average price is $31.36. The company has a debt-to-equity ratio of 3.87, a current ratio of 1.05 and a quick ratio of 1.05.

UBS Group Company Profile

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions.