Community Financial System, Inc. (NYSE:CBU) Plans Quarterly Dividend of $0.49

Key Points

• Community Financial System declared a quarterly dividend of $0.49 per share, payable on October 13 to stockholders of record on September 15. The new dividend is a 4.3% increase from the prior quarter and implies a dividend yield of about 2.9%.
• The company has raised its dividend for 33 straight years, and its payout appears well covered by earnings. Management and analysts point to a payout ratio of 39.7%, with future earnings expected to support the dividend comfortably.
• Community Financial System recently reported better-than-expected quarterly EPS of $1.15, topping estimates by $0.05, while revenue rose 8.7% year over year. However, revenue came in slightly below expectations, and several directors have also sold shares recently.

Community Financial System, Inc. (NYSE:CBU - Get Free Report) declared a quarterly dividend on Wednesday, July 22nd. Stockholders of record on Tuesday, September 15th will be paid a dividend of 0.49 per share by the bank on Tuesday, October 13th. This represents a c) annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, September 15th. This is a 4.3% increase from Community Financial System's previous quarterly dividend of $0.47.

Community Financial System has increased its dividend by an average of 0.0%annually over the last three years and has raised its dividend every year for the last 33 years. Community Financial System has a payout ratio of 39.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Community Financial System to earn $5.28 per share next year, which means the company should continue to be able to cover its $1.88 annual dividend with an expected future payout ratio of 35.6%.

Community Financial System Stock Performance

Shares of Community Financial System stock opened at $67.19 on Thursday. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.22. The firm has a market cap of $3.53 billion, a PE ratio of 16.31 and a beta of 0.77. Community Financial System has a 52 week low of $51.12 and a 52 week high of $71.11. The business's fifty day simple moving average is $65.18 and its 200-day simple moving average is $62.86.

Community Financial System (NYSE:CBU - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The bank reported $1.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.05. Community Financial System had a return on equity of 11.24% and a net margin of 21.26%.The company had revenue of $213.69 million for the quarter, compared to analyst estimates of $216.36 million. During the same quarter last year, the company earned $0.98 EPS. Community Financial System's revenue for the quarter was up 8.7% compared to the same quarter last year. Equities analysts forecast that Community Financial System will post 4.7 earnings per share for the current year.

Insider Activity at Community Financial System

In other Community Financial System news, Director Mark J. Bolus sold 12,191 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $67.00, for a total value of $816,797.00. Following the sale, the director owned 94,060 shares of the company's stock, valued at $6,302,020. This trade represents a 11.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Eric Stickels sold 2,000 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $63.98, for a total transaction of $127,960.00. Following the completion of the sale, the director owned 31,592 shares in the company, valued at $2,021,256.16. This represents a 5.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Community Financial System

Several institutional investors have recently bought and sold shares of CBU. IFP Advisors Inc lifted its stake in shares of Community Financial System by 507.0% in the 4th quarter. IFP Advisors Inc now owns 522 shares of the bank's stock valued at $30,000 after purchasing an additional 436 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Community Financial System by 38.4% in the second quarter. GAMMA Investing LLC now owns 541 shares of the bank's stock valued at $36,000 after purchasing an additional 150 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Community Financial System by 177.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 781 shares of the bank's stock valued at $44,000 after purchasing an additional 499 shares during the last quarter. Lipe & Dalton bought a new stake in shares of Community Financial System during the 4th quarter valued at approximately $52,000. Finally, Strs Ohio acquired a new position in shares of Community Financial System during the first quarter worth $102,000. Institutional investors own 73.79% of the company's stock.

About Community Financial System

Community Financial System NYSE: CBU is the bank holding company for Community Bank, National Association, a full-service commercial bank headquartered in DeWitt, New York. Through its principal subsidiary, the company offers a range of banking and financial services designed to meet the needs of both consumer and business clients. Its organizational structure centers on community-based banking operations supported by centralized technology, risk management and administrative functions.

The company's product offerings include deposit accounts, residential and commercial mortgage loans, commercial and consumer lending, treasury and cash management services, and electronic banking.

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