First Citizens BancShares (NASDAQ:FCNCA) Approves Share Repurchase Program

Key Points

• First Citizens BancShares approved a $1.20 billion share repurchase program, authorizing the bank to buy back up to 4.5% of its outstanding shares through open-market purchases.
• The bank reported quarterly EPS of $55.37, beating estimates of $46.18, while revenue reached $2.27 billion versus the $2.23 billion consensus forecast.
• First Citizens raised its quarterly dividend from $2.10 to $2.25 per share, equivalent to $9.00 annually and a 0.4% yield; analysts maintain a consensus “Hold” rating with a $2,344 price target.

First Citizens BancShares (NASDAQ:FCNCA - Get Free Report) announced that its board has initiated a share buyback plan on Friday, October 23rd, RTT News reports. The company plans to repurchase $1.20 billion in outstanding shares. This repurchase authorization allows the bank to purchase up to 4.5% of its stock through open market purchases. Share repurchase plans are typically an indication that the company's board believes its stock is undervalued.

First Citizens BancShares Price Performance

Shares of FCNCA stock traded down $30.23 during trading hours on Monday, reaching $2,345.61. The company's stock had a trading volume of 142,936 shares, compared to its average volume of 75,857. First Citizens BancShares has a fifty-two week low of $1,735.03 and a fifty-two week high of $2,429.96. The firm's 50 day simple moving average is $2,137.33 and its 200-day simple moving average is $2,061.06. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.59. The company has a market capitalization of $26.48 billion, a price-to-earnings ratio of 12.02, a PEG ratio of 1.76 and a beta of 0.58.

First Citizens BancShares (NASDAQ:FCNCA - Get Free Report) last posted its quarterly earnings results on Friday, October 23rd. The bank reported $55.37 EPS for the quarter, topping analysts' consensus estimates of $46.18 by $9.19. First Citizens BancShares had a return on equity of 12.49% and a net margin of 16.54%. The company had revenue of $2.27 billion during the quarter, compared to analysts' expectations of $2.23 billion. Sell-side analysts forecast that First Citizens BancShares will post 193.20 earnings per share for the current year.

First Citizens BancShares Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 30th will be given a $2.25 dividend. This is a boost from First Citizens BancShares's previous quarterly dividend of $2.10. This represents a $9.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Monday, November 30th. First Citizens BancShares's dividend payout ratio (DPR) is presently 4.49%.

Analysts Set New Price Targets

Several research analysts have recently commented on FCNCA shares. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and set a $2,300.00 target price on shares of First Citizens BancShares in a report on Thursday, July 9th. The Goldman Sachs Group lifted their price target on shares of First Citizens BancShares from $2,100.00 to $2,340.00 and gave the company a "neutral" rating in a research report on Tuesday, July 7th. JPMorgan Chase & Co. reiterated an "underweight" rating and issued a $2,200.00 price target (down from $2,300.00) on shares of First Citizens BancShares in a research note on Monday. Fundamental Research set a $2,350.00 price target on First Citizens BancShares in a research report on Wednesday, July 1st. Finally, Barclays increased their price target on First Citizens BancShares from $2,376.00 to $2,650.00 and gave the stock an "equal weight" rating in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $2,344.00.

Insider Transactions at First Citizens BancShares

In related news, Director Diane E. Morais bought 50 shares of the company's stock in a transaction dated Wednesday, August 19th. The stock was purchased at an average price of $2,168.11 per share, with a total value of $108,405.50. Following the completion of the acquisition, the director owned 100 shares of the company's stock, valued at $216,811. The trade was a 100.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Olivia Britton Holding sold 7,000 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $19.53, for a total transaction of $136,710.00. Following the completion of the sale, the insider owned 15,000 shares in the company, valued at approximately $292,950. The trade was a 31.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 14.63% of the company's stock.

About First Citizens BancShares

First Citizens BancShares, Inc is a bank holding company headquartered in Raleigh, North Carolina. Its principal subsidiary, First-Citizens Bank & Trust Company, provides banking and financial services to individuals, businesses, and institutions through a network of branches and digital banking channels.

The bank offers deposit accounts, consumer and residential lending, commercial and industrial loans, commercial real estate financing, equipment finance, treasury management, and payment services.

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