Community Financial System, Inc. (NYSE:CBU) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst consensus is “Moderate Buy” for Community Financial System, with four hold ratings, one buy, and one strong buy. The average 12-month price target is $71.50 versus the reported share price of $62.55.
• The company’s latest quarterly results fell slightly short of expectations, reporting $1.16 in EPS versus the $1.18 consensus and revenue of $218.45 million versus $221.77 million expected. However, revenue increased 12% year over year.
• Community Financial System raised its quarterly dividend to $0.49 per share, implying an annualized dividend of $1.96 and a 3.1% yield; its payout ratio is 43.62%.

Shares of Community Financial System, Inc. (NYSE:CBU - Get Free Report) have received an average rating of "Moderate Buy" from the six analysts that are currently covering the company, Marketbeat reports. Four investment analysts have rated the stock with a hold recommendation, one has 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 $71.50.

Several analysts have recently commented on CBU shares. Weiss Ratings raised shares of Community Financial System from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, July 2nd. Keefe, Bruyette & Woods reduced their price objective on Community Financial System from $70.00 to $68.00 and set a "market perform" rating on the stock in a report on Thursday, July 30th. Wall Street Zen upgraded Community Financial System from a "sell" rating to a "hold" rating in a research report on Monday, August 10th. Finally, Piper Sandler lifted their price objective on Community Financial System from $66.00 to $71.00 and gave the stock a "neutral" rating in a research report on Monday, August 3rd.

Community Financial System Price Performance

NYSE CBU opened at $62.55 on Friday. Community Financial System has a twelve month low of $53.46 and a twelve month high of $71.11. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.77 and a current ratio of 0.77. The stock has a market capitalization of $3.29 billion, a PE ratio of 14.51 and a beta of 0.77. The stock has a 50-day simple moving average of $65.18 and a 200 day simple moving average of $63.16.

Community Financial System (NYSE:CBU - Get Free Report) last posted its earnings results on Tuesday, July 28th. The bank reported $1.16 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.18 by ($0.02). The firm had revenue of $218.45 million during the quarter, compared to the consensus estimate of $221.77 million. Community Financial System had a net margin of 21.79% and a return on equity of 11.47%. The business's revenue was up 12.0% on a year-over-year basis. During the same quarter last year, the firm posted $1.04 EPS. Research analysts anticipate that Community Financial System will post 4.58 EPS for the current year.

Community Financial System Increases Dividend

The firm also recently declared 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 is Tuesday, September 15th. This represents a $1.96 annualized dividend and a dividend yield of 3.1%. This is a positive change from Community Financial System's previous quarterly dividend of $0.47. Community Financial System's dividend payout ratio is presently 43.62%.

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 shares were sold at an average price of $67.00, for a total value of $816,797.00. Following the transaction, the director directly owned 94,060 shares of the company's stock, valued at approximately $6,302,020. This trade represents a 11.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Brenda M. Hall acquired 476 shares of Community Financial System stock in a transaction on Monday, August 24th. The stock was acquired at an average cost of $63.59 per share, for a total transaction of $30,268.84. Following the completion of the purchase, the director owned 515 shares of the company's stock, valued at approximately $32,748.85. The trade was a 1,220.51% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.15% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. IFP Advisors Inc grew its stake in shares of Community Financial System by 507.0% during the fourth quarter. IFP Advisors Inc now owns 522 shares of the bank's stock worth $30,000 after purchasing an additional 436 shares during the period. GAMMA Investing LLC lifted its stake in 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 buying an additional 150 shares during the period. Nykredit A S bought a new position in Community Financial System during the second quarter worth about $38,000. Public Employees Retirement System of Ohio bought a new position in Community Financial System during the second quarter worth about $44,000. Finally, EverSource Wealth Advisors LLC grew its position in shares of Community Financial System by 177.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 781 shares of the bank's stock worth $44,000 after buying an additional 499 shares during the period. Institutional investors and hedge funds own 73.79% of the company's stock.

About Community Financial System

Community Financial System, Inc NYSE: CBU is a diversified financial services company headquartered in DeWitt, New York. Formerly known as Community Bank System, Inc, the company changed its name in 2024 to reflect the broader range of services offered beyond traditional banking.

Through its Community Bank, N.A. subsidiary, the company provides personal and business banking services, including deposit accounts, consumer and commercial lending, mortgages, cash management, and electronic banking.

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