Sell-side analyst favorite U.S. Bancorp received much love from hedge funds in the third quarter. The stock saw $169 million worth of buying, with Viking Global Investors, Maverick Capital and Ken Griffin's Citadel being among the notable buyers.
The bank saw strong lending trends in the third quarter, driving a net income growth of 40% year-over-year to $1.273 billion or 64 cents per share. Average total loans increased 5% over the corresponding quarter of the previous year- 4.5% excluding acquisitions.US Bancorp is gaining market share in corporate loans as foreign banks reduce their U.S. exposure, notably in the syndicated loan market. The bank also ranks among the highest on profitability metrics with a return on assets of 3%. Shares are down 6% year-to-date but the stock is a relative outperformer in the banking space. 22 analysts rate the stock a buy or outperform, 12 maintain a hold rating while two analysts have an underperform or sell rating.