Customers Bancorp (NYSE:CUBI) Downgraded to Underweight Rating by Morgan Stanley

Key Points

• Morgan Stanley downgraded Customers Bancorp from “equal weight” to “underweight,” while maintaining an $89 price target, implying approximately 10.1% upside from the prior close.
• Despite the downgrade, analysts remain broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $90.77.
• Customers Bancorp beat quarterly EPS estimates, reporting $2.05 versus the expected $2.00, while revenue increased 10.2% year over year to $227.28 million. Insiders have recently sold 100,000 shares, though institutional investors own 89.29% of the company.

Customers Bancorp (NYSE:CUBI - Get Free Report) was downgraded by Morgan Stanley from an "equal weight" rating to an "underweight" rating in a research report issued on Tuesday, Marketbeat reports. They presently have a $89.00 price target on the bank's stock. Morgan Stanley's price objective would suggest a potential upside of 10.13% from the stock's previous close.

CUBI has been the subject of several other research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Customers Bancorp in a report on Monday, June 29th. Keefe, Bruyette & Woods raised their target price on shares of Customers Bancorp from $88.00 to $89.00 and gave the company a "market perform" rating in a research note on Monday, August 3rd. JPMorgan Chase & Co. lifted their target price on shares of Customers Bancorp from $86.00 to $94.00 and gave the company an "overweight" rating in a research report on Wednesday, July 1st. Piper Sandler upped their price objective on Customers Bancorp from $86.00 to $92.00 and gave the stock an "overweight" rating in a report on Friday, June 26th. Finally, Fundamental Research set a $94.00 target price on shares of Customers Bancorp in a report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $90.77.

Customers Bancorp Price Performance

NYSE:CUBI opened at $80.81 on Tuesday. The firm has a market capitalization of $2.73 billion, a price-to-earnings ratio of 9.85 and a beta of 1.47. Customers Bancorp has a 52-week low of $59.34 and a 52-week high of $84.38. The stock has a fifty day moving average of $79.14 and a 200 day moving average of $75.27. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.00 and a current ratio of 1.00.

Customers Bancorp (NYSE:CUBI - Get Free Report) last announced its earnings results on Thursday, July 23rd. The bank reported $2.05 earnings per share for the quarter, topping analysts' consensus estimates of $2.00 by $0.05. Customers Bancorp had a return on equity of 13.80% and a net margin of 19.07%.The business had revenue of $227.28 million for the quarter, compared to analyst estimates of $229.24 million. During the same period in the prior year, the company earned $1.80 EPS. The company's quarterly revenue was up 10.2% compared to the same quarter last year. On average, research analysts expect that Customers Bancorp will post 8.43 EPS for the current fiscal year.

Insiders Place Their Bets

In other Customers Bancorp news, Chairman Jay Sidhu sold 68,821 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $80.09, for a total value of $5,511,873.89. Following the completion of the transaction, the chairman owned 667,757 shares in the company, valued at approximately $53,480,658.13. This represents a 9.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold 100,000 shares of company stock valued at $7,981,084 over the last 90 days. 10.45% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Customers Bancorp

Several hedge funds have recently bought and sold shares of CUBI. Royal Bank of Canada increased its stake in shares of Customers Bancorp by 11.5% during the first quarter. Royal Bank of Canada now owns 5,344 shares of the bank's stock valued at $269,000 after purchasing an additional 553 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Customers Bancorp by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 17,625 shares of the bank's stock worth $885,000 after purchasing an additional 786 shares in the last quarter. Millennium Management LLC grew its stake in shares of Customers Bancorp by 71.4% in the 1st quarter. Millennium Management LLC now owns 274,730 shares of the bank's stock worth $13,791,000 after buying an additional 114,430 shares during the last quarter. Jones Financial Companies Lllp purchased a new stake in shares of Customers Bancorp in the 1st quarter worth approximately $37,000. Finally, Creative Planning bought a new position in Customers Bancorp during the 2nd quarter valued at approximately $250,000. Institutional investors own 89.29% of the company's stock.

Customers Bancorp Company Profile

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.

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