Customers Bancorp (NYSE:CUBI) faced a downgrade from analysts at Wall Street Zen, shifting from a “buy” rating to a “hold” rating as detailed in a report released on November 24, 2023. This adjustment reflects a growing divergence in analyst opinions regarding the bank’s stock performance, following a series of mixed evaluations from various financial institutions.
In a contrasting move, TD Cowen raised its target price for Customers Bancorp from $89.00 to $95.00 while maintaining a “buy” rating on October 27. Meanwhile, B. Riley also reaffirmed a “buy” rating on the same day. Weiss Ratings, however, issued a “hold (c+)” rating, which adds to the varied recommendations surrounding the stock. As a result, Customers Bancorp has garnered a consensus rating of “Moderate Buy” and a target price of $83.67, according to MarketBeat.com.
Performance and Earnings Overview
Customers Bancorp recently announced its earnings results on September 8, 2023, reporting earnings per share (EPS) of $1.80 for the quarter, alongside revenue of $206.82 million. The bank’s performance exhibited a net margin of 12.43% and a return on equity of 13.24%. Analysts predict that Customers Bancorp will achieve an EPS of $6.45 for the current fiscal year, indicating a cautious outlook for the company’s profitability.
Despite these figures, the stock has experienced fluctuations, dropping 0.2% in response to the recent downgrade. This decline highlights the tension between varying analyst perspectives and market sentiment.
Insider Trading Activity
Recent insider trading activity has also drawn attention. Executive Vice President Philip Watkins sold 2,900 shares of Customers Bancorp on November 24 at an average price of $65.04, totaling approximately $188,616. Following this sale, Watkins retained 50,849 shares valued at about $3.3 million, marking a 5.40% decrease in his holdings.
Additionally, Director Bernard Bennett Banks sold 9,000 shares on November 7 at an average price of $66.93, resulting in a total transaction value of $602,370. Post-sale, Banks owned 7,524 shares valued at approximately $503,581, reflecting a significant 54.47% reduction in his stake.
Over the past ninety days, insiders have sold a total of 211,900 shares worth $14.6 million, indicating a notable trend in insider trading activity. Currently, insiders hold around 6.92% of the company’s stock.
Institutional Investor Activity
Institutional investors have also played a significant role in shaping the ownership landscape of Customers Bancorp. Deutsche Bank AG increased its stake in the bank by 21.4% in the first quarter, now holding 86,358 shares valued at approximately $4.34 million. Other notable investments include Connor Clark & Lunn Investment Management Ltd.’s new stake worth about $558,000 and Nuveen LLC’s significant purchase valued at $26.65 million.
Public Sector Pension Investment Board raised its stake by 54.3%, now owning 112,092 shares valued at $5.63 million. Russell Investments Group Ltd. also increased its holdings by 5.2%, bringing its total to 80,652 shares worth approximately $4.05 million. Currently, institutional investors own around 89.29% of Customers Bancorp’s stock, underscoring the confidence of larger entities in the bank’s future.
As analysts continue to evaluate Customers Bancorp’s market position, the mixed ratings and recent stock performance suggest that investors should remain vigilant in monitoring upcoming developments.
