Customers Bancorp, Inc (NYSE:CUBI) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twelve analysts collectively rate Customers Bancorp “Moderate Buy,” with six buys, one strong buy, four holds and one sell. The average 12-month price target is $91.36 versus a recent share price of $77.20.
• Quarterly results exceeded expectations: Customers Bancorp reported adjusted earnings of $2.05 per share, topping estimates by $0.05, while revenue rose 10.2% year over year to $227.28 million.
• Ownership activity was mixed: Chairman Jay Sidhu sold 68,821 shares worth approximately $5.5 million, while institutional investors—including BlackRock and Wellington Management—held or increased substantial positions. Institutions and hedge funds own 89.29% of the stock.

Shares of Customers Bancorp, Inc (NYSE:CUBI - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the twelve analysts that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell rating, four have assigned a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $91.36.

Several brokerages have commented on CUBI. Fundamental Research set a $94.00 target price on shares of Customers Bancorp in a research report on Wednesday, July 1st. DA Davidson raised their price target on Customers Bancorp from $98.00 to $100.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. Weiss Ratings reiterated a "buy (b)" rating on shares of Customers Bancorp in a report on Monday, June 29th. Keefe, Bruyette & Woods increased their target price on Customers Bancorp from $88.00 to $89.00 and gave the company a "market perform" rating in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. increased their target price on Customers Bancorp from $86.00 to $94.00 and gave the company an "overweight" rating in a research note on Wednesday, July 1st.

Insider Activity at Customers Bancorp

In other news, Chairman Jay Sidhu sold 68,821 shares of the company's stock in a transaction dated 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 sale, the chairman directly owned 667,757 shares of the company's stock, valued at $53,480,658.13. This represents a 9.34% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Over the last three months, insiders sold 100,000 shares of company stock valued at $7,981,084. Corporate insiders own 10.45% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in Customers Bancorp in the second quarter worth $385,165,000. Wellington Management Group LLP boosted its position in shares of Customers Bancorp by 3.8% during the second quarter. Wellington Management Group LLP now owns 4,035,500 shares of the bank's stock worth $319,208,000 after purchasing an additional 145,956 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Customers Bancorp by 3.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,942,989 shares of the bank's stock valued at $134,859,000 after buying an additional 65,954 shares during the period. Assenagon Asset Management S.A. increased its position in shares of Customers Bancorp by 213.0% in the 1st quarter. Assenagon Asset Management S.A. now owns 778,789 shares of the bank's stock valued at $54,056,000 after buying an additional 529,987 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in shares of Customers Bancorp by 9.5% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 461,956 shares of the bank's stock valued at $32,776,000 after buying an additional 40,104 shares in the last quarter. Institutional investors and hedge funds own 89.29% of the company's stock.

Customers Bancorp Stock Up 0.2%

Shares of NYSE:CUBI opened at $77.20 on Monday. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.00 and a quick ratio of 1.00. The stock has a market cap of $2.61 billion, a price-to-earnings ratio of 9.41 and a beta of 1.47. The company has a 50 day moving average of $79.29 and a 200-day moving average of $76.07. Customers Bancorp has a one year low of $59.34 and a one year high of $84.38.

Customers Bancorp (NYSE:CUBI - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The bank reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.00 by $0.05. Customers Bancorp had a net margin of 19.07% and a return on equity of 13.80%. 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 business posted $1.80 earnings per share. Customers Bancorp's revenue was up 10.2% compared to the same quarter last year. On average, sell-side analysts forecast that Customers Bancorp will post 8.44 earnings per share for the current year.

About Customers Bancorp

Customers Bancorp, Inc is a bank holding company headquartered in Wyomissing, Pennsylvania. Through its principal subsidiary, Customers Bank, the company provides banking services to businesses, institutions, professionals and individual consumers.

Customers Bank offers commercial and industrial lending, commercial real estate loans, small business financing, residential and consumer loans, deposit accounts, cash-management services and other treasury-management solutions. The bank also operates specialty and digital banking businesses designed to support technology companies, venture-backed businesses, financial institutions and other commercial clients.

Customers Bancorp was established in 2009 and has developed from a regional banking organization into a bank with both Mid-Atlantic operations and nationally oriented specialty-finance and digital capabilities.

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