5 Most Undervalued Dividend Stocks To Buy According To Analysts

3. The PNC Financial Services Group, Inc. (NYSE:PNC)

Number of Hedge Fund Holders: 52

Average Analyst Price Estimate: $198

American bank holding company The PNC Financial Services Group, Inc. (NYSE:PNC) ranks 3rd in our list of the best undervalued dividend stocks to buy now. The PNC Financial Services Group, Inc. (NYSE:PNC) recently bought a portfolio of capital commitments facilities from Signature Bridge Bank, N.A. for about $16.6 billion in total commitments.

As of the end of the second quarter of 2023, 52 hedge funds tracked by Insider Monkey had stakes in The PNC Financial Services Group, Inc. (NYSE:PNC). The biggest hedge fund stakeholder of The PNC Financial Services Group, Inc. (NYSE:PNC) was Dmitry Balyasny’s Balyasny Asset Management which owns an $120 million stake in the company.

Artisan Value Fund made the following comment about The PNC Financial Services Group, Inc. (NYSE:PNC) in its Q1 2023 investor letter:

“We are taking advantage of the current weakness in bank stocks. In Q1, we purchased The PNC Financial Services Group, Inc. (NYSE:PNC) and US Bancorp. These are banks we have known for years. They are well-managed and have solid capital positions and liquidity. At the end of Q1, we had an ~7% weighting in banks consisting of PNC, US Bancorp and Bank of America. All 3 are among the 10 largest US banks. We believe the range of probabilities and long-term outcomes are tilted in our favor at current prices but are proceeding with caution for several reasons. First, while we believe deposit-runs have likely burned themselves out, there is a non-zero risk these runs spread wider than our base case. Second, we expect more regulation in coming years which will increase the cost of doing business, potentially in exchange for higher FDIC limits. Third, at the very least we expect banks to cease buybacks for the rest of the year to build up liquidity and capital ratios. There is an increasingly more likely outcome that banks issue equity capital and preferred stock once markets stabilize. Fourth, with the banking system in shock, it will likely retrench, which will constrict capital to the US economy. Coupled with the “long and variable lags” of Fed policy, this will slow US economic growth beyond what private credit markets can make up.”