Community Financial System (NYSE:CBU) Announces Earnings Results

Key Points

• Community Financial System exceeded earnings expectations, reporting quarterly EPS of $1.22 versus the $1.18 consensus estimate. Net margin was 21.26% and return on equity was 11.24%.
• The company increased its quarterly dividend to $0.49 per share from $0.47, implying annualized dividends of $1.96 and a 2.9% yield.
• Analyst sentiment is moderately positive, with a consensus “Moderate Buy” rating and a $69.75 target price. Institutional investors own 73.79% of shares, while two directors recently sold stock.

Community Financial System (NYSE:CBU - Get Free Report) announced its quarterly earnings results on Tuesday. The bank reported $1.22 EPS for the quarter, topping the consensus estimate of $1.18 by $0.04, Zacks reports. Community Financial System had a net margin of 21.26% and a return on equity of 11.24%.

Community Financial System Stock Performance

NYSE CBU opened at $66.65 on Tuesday. The company has a market cap of $3.50 billion, a P/E ratio of 16.18 and a beta of 0.77. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.77 and a current ratio of 0.77. The business's 50 day moving average price is $65.46 and its 200-day moving average price is $63.03. Community Financial System has a fifty-two week low of $51.12 and a fifty-two week high of $71.11.

Community Financial System Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.49 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.96 annualized dividend and a dividend yield of 2.9%. This is an increase from Community Financial System's previous quarterly dividend of $0.47. Community Financial System's dividend payout ratio is presently 45.63%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on CBU. Piper Sandler raised their price objective on Community Financial System from $62.00 to $66.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Wall Street Zen upgraded Community Financial System from a "sell" rating to a "hold" rating in a research report on Saturday. Raymond James Financial reissued a "strong-buy" rating and set a $75.00 price target on shares of Community Financial System in a research note on Thursday, April 30th. Finally, Weiss Ratings upgraded Community Financial System from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Community Financial System currently has an average rating of "Moderate Buy" and a consensus target price of $69.75.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Community Financial System

Large investors have recently made changes to their positions in the company. Bank of America Corp DE raised its position in Community Financial System by 132.9% in the 3rd quarter. Bank of America Corp DE now owns 636,257 shares of the bank's stock worth $37,310,000 after purchasing an additional 363,012 shares during the period. Basswood Capital Management L.L.C. purchased a new position in shares of Community Financial System during the second quarter valued at approximately $15,185,000. UBS Group AG grew its stake in shares of Community Financial System by 129.6% during the third quarter. UBS Group AG now owns 276,438 shares of the bank's stock valued at $16,210,000 after buying an additional 156,049 shares during the last quarter. Jane Street Group LLC grew its stake in shares of Community Financial System by 523.4% during the first quarter. Jane Street Group LLC now owns 145,719 shares of the bank's stock valued at $8,286,000 after buying an additional 122,343 shares during the last quarter. Finally, Balyasny Asset Management L.P. grew its stake in shares of Community Financial System by 25.3% during the second quarter. Balyasny Asset Management L.P. now owns 354,906 shares of the bank's stock valued at $20,184,000 after buying an additional 71,631 shares during the last quarter. 73.79% of the stock is owned by hedge funds and other institutional investors.

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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