Customers Bancorp, Inc (NYSE:CUBI) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Customers Bancorp, Inc (NYSE:CUBI) have earned a consensus rating of “Moderate Buy” from the twelve ratings firms that are covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, six have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $87.50.

Several equities research analysts have weighed in on the company. DA Davidson increased their price objective on Customers Bancorp from $91.00 to $93.00 and gave the stock a “buy” rating in a report on Monday, April 27th. Zacks Research cut Customers Bancorp from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 10th. JPMorgan Chase & Co. dropped their price objective on Customers Bancorp from $90.00 to $84.00 and set an “overweight” rating for the company in a report on Wednesday, April 1st. B. Riley Financial reiterated a “buy” rating on shares of Customers Bancorp in a report on Monday, January 26th. Finally, Morgan Stanley dropped their price objective on Customers Bancorp from $92.00 to $83.00 and set an “equal weight” rating for the company in a report on Tuesday, March 31st.

Customers Bancorp Price Performance

CUBI opened at $75.25 on Tuesday. The stock’s 50 day simple moving average is $72.93 and its 200 day simple moving average is $72.71. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.01 and a quick ratio of 1.01. Customers Bancorp has a 1 year low of $49.54 and a 1 year high of $82.56. The firm has a market cap of $2.55 billion, a price-to-earnings ratio of 9.55 and a beta of 1.52.

Customers Bancorp (NYSE:CUBI) last posted its quarterly earnings results on Thursday, April 23rd. The bank reported $1.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.88 by $0.09. Customers Bancorp had a return on equity of 14.12% and a net margin of 18.63%.The business had revenue of $225.40 million for the quarter, compared to analyst estimates of $223.51 million. During the same period last year, the company earned $1.54 EPS. Customers Bancorp’s revenue for the quarter was up 57.9% compared to the same quarter last year. As a group, analysts predict that Customers Bancorp will post 8.52 earnings per share for the current year.

Customers Bancorp announced that its board has authorized a stock repurchase program on Wednesday, February 11th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the bank to reacquire up to 4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Insider Activity at Customers Bancorp

In other Customers Bancorp news, CEO Samvir S. Sidhu acquired 1,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was acquired at an average price of $72.58 per share, for a total transaction of $72,580.00. Following the acquisition, the chief executive officer owned 521,714 shares in the company, valued at $37,866,002.12. This represents a 0.19% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Philip Watkins sold 3,000 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $75.67, for a total value of $227,010.00. Following the completion of the sale, the executive vice president owned 43,993 shares of the company’s stock, valued at approximately $3,328,950.31. This trade represents a 6.38% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 10.45% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Access Investment Management LLC raised its stake in Customers Bancorp by 15.7% during the third quarter. Access Investment Management LLC now owns 132,415 shares of the bank’s stock valued at $8,656,000 after buying an additional 18,000 shares during the last quarter. EJF Capital LLC purchased a new position in Customers Bancorp during the third quarter valued at $1,711,000. Fortress Investment Group LLC purchased a new position in Customers Bancorp during the third quarter valued at $2,860,000. Principal Financial Group Inc. raised its stake in Customers Bancorp by 23.4% during the third quarter. Principal Financial Group Inc. now owns 179,762 shares of the bank’s stock valued at $11,751,000 after buying an additional 34,081 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC raised its stake in Customers Bancorp by 5.8% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 421,852 shares of the bank’s stock valued at $31,428,000 after buying an additional 23,129 shares during the last quarter. Hedge funds and other institutional investors own 89.29% of the company’s stock.

About Customers Bancorp

Customers Bancorp, Inc (NYSE: CUBI) is a bank holding company headquartered in Phoenixville, Pennsylvania, and the parent of Customers Bank, a federally chartered institution. The company offers a full suite of commercial and consumer banking services, combining traditional deposit and lending products with modern digital banking platforms. As a publicly traded entity, Customers Bancorp focuses on delivering tailored financial solutions to mid‐market companies, small businesses, professionals and individuals across the United States.

Through its commercial banking division, the company provides term loans, lines of credit, real estate financing, asset‐based lending and treasury management services.