First Republic Bank (FRC) Reaches New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified First Republic Bank ( FRC) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified First Republic Bank as such a stock due to the following factors:

  • FRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.6 million.
  • FRC has traded 10,108 shares today.
  • FRC is trading at a new lifetime high.

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More details on FRC:

First Republic Bank, together with its subsidiaries, provides private banking, private business banking, real estate lending, and wealth management services to clients in metropolitan areas of the United States. It operates through two segments, Commercial Banking and Wealth Management. The stock currently has a dividend yield of 1%. FRC has a PE ratio of 21. Currently there are 7 analysts that rate First Republic Bank a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for First Republic Bank has been 699,300 shares per day over the past 30 days. First Republic has a market cap of $8.2 billion and is part of the financial sector and banking industry. Shares are up 13.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates First Republic Bank as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 1.1% when compared to the same quarter one year prior, going from $114.70 million to $115.91 million.
  • The gross profit margin for FIRST REPUBLIC BANK is currently very high, coming in at 89.39%. Regardless of FRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 25.20% trails the industry average.
  • FIRST REPUBLIC BANK' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, FIRST REPUBLIC BANK reported lower earnings of $3.07 versus $3.11 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $3.07).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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