Customers Bancorp (NYSE:CUBI) has been downgraded from a “buy” to a “hold” rating by analysts at Wall Street Zen, according to a research report released on Saturday. This change reflects a cautious outlook for the company amidst a landscape of mixed analyst opinions.
Several other financial institutions have provided varying assessments of Customers Bancorp. On October 27, TD Cowen raised its price target for the stock from $89.00 to $95.00, maintaining a “buy” rating. Similarly, B. Riley also reiterated a “buy” rating on the same day. In contrast, Weiss Ratings assigned a “hold (c+)” rating on December 8, while National Bankshares set a target price of $89.00 in a report on September 24. Morgan Stanley commenced coverage of Customers Bancorp on December 8, assigning an “equal weight” rating with a price target of $90.00.
The current consensus on Customers Bancorp from analysts indicates a “Moderate Buy” rating, with an average target price of $83.67. Out of the ratings issued, one analyst has classified the stock as a Strong Buy, five have issued Buy ratings, and five have assigned Hold ratings.
Recent Financial Performance and Insider Activity
Customers Bancorp recently announced its earnings results for the quarter ending September 8. The bank reported earnings per share (EPS) of $1.80 and revenue amounting to $206.82 million. The organization posted a net margin of 12.43% and a return on equity of 13.24%. Analysts project that Customers Bancorp will achieve an EPS of $6.45 for the current fiscal year.
In terms of insider trading, Executive Vice President Philip Watkins sold 2,900 shares on November 24 for an average price of $65.04, totaling $188,616.00. Following this transaction, Watkins retained 50,849 shares with an approximate value of $3,307,218.96. Additionally, Director Bernard Bennett Banks sold 9,000 shares on November 7, generating $602,370.00 at an average price of $66.93. This sale reduced his holdings to 7,524 shares valued at around $503,581.32. In total, insiders have sold 211,900 shares worth $14,595,664 over the past ninety days, representing 6.92% of the company’s stock owned by insiders.
Institutional Investors and Market Insights
Recent activity among institutional investors reflects a significant interest in Customers Bancorp. Deutsche Bank AG increased its stake by 21.4% during the first quarter, now owning 86,358 shares valued at $4,335,000 after acquiring an additional 15,248 shares. Connor Clark & Lunn Investment Management Ltd. entered the market with a new stake worth approximately $558,000 during the same quarter.
Nuveen LLC made a substantial investment by purchasing shares valued at around $26,652,000, while the Public Sector Pension Investment Board raised its holdings by 54.3%, owning 112,092 shares worth $5,627,000. Russell Investments Group Ltd. also increased its stake by 5.2%, now holding 80,652 shares valued at $4,049,000. Overall, institutional investors own 89.29% of Customers Bancorp’s stock.
Customers Bancorp operates as the bank holding company for Customers Bank, providing a range of financial products and services to individual consumers, as well as small and middle-market businesses. The bank offers various deposit banking products, including commercial and consumer checking accounts, both interest-bearing and non-interest-bearing demand accounts, as well as savings and time deposit accounts.
As analysts continue to monitor the stock’s performance, it remains crucial for investors to consider these insights and ratings as part of their investment strategies.
