Customers Bancorp, Inc. (NYSE:CUBI) achieved a new 52-week high during trading on Thursday, reaching a peak of $72.56 before closing at $72.6950. The trading volume for the day was approximately 123,600 shares, marking an increase from the previous closing price of $70.95. This rise has sparked discussion among investors regarding the potential for further growth.
Analysts Provide Insights on Stock Performance
Several analysts have recently provided their assessments of Customers Bancorp. On October 27, 2023, Weiss Ratings reaffirmed a “hold (C+)” rating for the company. In contrast, B. Riley and Cowen both maintained “buy” ratings for the stock. Notably, DA Davidson raised its price target from $77.00 to $88.00, also assigning a “buy” rating. Meanwhile, TD Cowen increased its price objective from $89.00 to $95.00, emphasizing a positive outlook for the company.
Overall, one analyst has issued a “Strong Buy” rating, five have rated it as “Buy,” and four have given it a “Hold” rating. According to MarketBeat, Customers Bancorp has a consensus rating of “Moderate Buy” with an average target price of $82.88.
Recent Earnings and Company Performance
Customers Bancorp reported its latest earnings results on September 8, 2023, revealing earnings per share of $1.80 for the quarter. The bank achieved a return on equity of 13.24% and a net margin of 12.43%, with quarterly revenue totaling $206.82 million. Analysts predict that the company will achieve earnings per share of $6.45 for the current fiscal year.
Despite the positive momentum in stock price, Customers Bancorp’s shares experienced a minor decline of 0.4% recently, prompting questions about the sustainability of its market performance.
Insider Transactions and Institutional Holdings
In related news, insider activity has been notable. On November 7, 2023, Director Bernard Bennett Banks sold 9,000 shares at an average price of $66.93, totaling approximately $602,370. Following this transaction, he retains 7,524 shares valued at roughly $503,581.32, marking a reduction of 54.47% in his position.
Furthermore, Executive Vice President Philip Watkins sold 2,900 shares on November 24, 2023, at an average price of $65.04, amounting to around $188,616. Post-sale, Watkins holds 50,849 shares valued at about $3,307,218.96, reflecting a 5.40% decrease in his stake.
In the past 90 days, insiders have sold a total of 211,900 shares worth $14,595,664. Currently, insiders own 8.69% of the company’s stock.
Recently, several large investors have adjusted their positions in Customers Bancorp. The Arizona State Retirement System increased its holdings by 1.8% during the third quarter, now owning 8,879 shares valued at $580,000. Other institutions, including AllianceBernstein L.P. and the Teacher Retirement System of Texas, have also made incremental increases to their positions.
Institutional investors collectively own 89.29% of Customers Bancorp, demonstrating strong confidence in the company’s future prospects.
Customers Bancorp operates as the bank holding company for Customers Bank, providing a variety of financial products and services to consumers and small to mid-sized businesses. The company’s offerings include various banking products, including commercial and consumer checking accounts, savings accounts, and time deposits.
As investors and analysts continue to monitor Customers Bancorp’s performance, the company appears poised for ongoing interest in the financial markets.
