Customers Bancorp, Inc (NYSE:CUBI) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Customers Bancorp has a consensus analyst rating of “Moderate Buy”, with an average 12-month price target of $87.50 from the 12 firms covering the stock.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.97 versus estimates of $1.88, while revenue rose 57.9% year over year to $225.4 million.
• Customers Bancorp also announced a $100 million share repurchase plan, and insider activity included CEO Samvir S. Sidhu buying 1,000 shares while EVP Philip Watkins sold 3,000 shares.

Customers Bancorp, Inc (NYSE:CUBI - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twelve research firms that are presently covering the company, MarketBeat Ratings reports. Five research analysts have rated the stock with 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 objective among brokers that have issued ratings on the stock in the last year is $87.50.

Several equities analysts have recently commented on CUBI shares. Weiss Ratings upgraded Customers Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 2nd. JPMorgan Chase & Co. reduced their price objective on Customers Bancorp from $90.00 to $84.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 1st. Piper Sandler reiterated an "overweight" rating and set a $86.00 price objective (up from $82.00) on shares of Customers Bancorp in a research report on Monday, April 27th. Morgan Stanley reduced their price objective on Customers Bancorp from $92.00 to $83.00 and set an "equal weight" rating on the stock in a research report on Tuesday, March 31st. Finally, TD Cowen reiterated a "buy" rating on shares of Customers Bancorp in a research report on Monday, January 26th.

Insider Activity

In other news, CEO Samvir S. Sidhu acquired 1,000 shares of Customers Bancorp stock in a transaction dated Tuesday, May 12th. The shares were purchased at an average cost of $72.58 per share, for a total transaction of $72,580.00. Following the transaction, the chief executive officer owned 521,714 shares of the company's stock, valued at $37,866,002.12. This trade represents a 0.19% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Philip Watkins sold 3,000 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $75.67, for a total value of $227,010.00. Following the transaction, the executive vice president owned 43,993 shares in the company, valued at $3,328,950.31. This trade represents a 6.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 10.45% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Customers Bancorp

Several institutional investors and hedge funds have recently bought and sold shares of CUBI. Arax Advisory Partners grew its position in Customers Bancorp by 218.9% during the 4th quarter. Arax Advisory Partners now owns 354 shares of the bank's stock worth $26,000 after acquiring an additional 243 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new position in Customers Bancorp during the 3rd quarter worth approximately $29,000. Bessemer Group Inc. grew its position in Customers Bancorp by 78.4% during the 1st quarter. Bessemer Group Inc. now owns 528 shares of the bank's stock worth $37,000 after acquiring an additional 232 shares during the last quarter. Jones Financial Companies Lllp bought a new position in Customers Bancorp during the 1st quarter worth approximately $37,000. Finally, Transamerica Financial Advisors LLC grew its position in Customers Bancorp by 216.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 591 shares of the bank's stock worth $43,000 after acquiring an additional 404 shares during the last quarter. 89.29% of the stock is currently owned by institutional investors.

Customers Bancorp Price Performance

Shares of NYSE CUBI opened at $75.25 on Tuesday. The firm has a market capitalization of $2.55 billion, a P/E ratio of 9.55 and a beta of 1.52. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.81. The stock's 50-day simple moving average is $72.93 and its two-hundred day simple moving average is $72.71. Customers Bancorp has a twelve month low of $49.54 and a twelve month high of $82.56.

Customers Bancorp (NYSE:CUBI - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The bank reported $1.97 EPS for the quarter, beating the consensus estimate of $1.88 by $0.09. The firm had revenue of $225.40 million for the quarter, compared to analyst estimates of $223.51 million. Customers Bancorp had a return on equity of 14.12% and a net margin of 18.63%.The company's revenue was up 57.9% on a year-over-year basis. During the same period in the prior year, the company earned $1.54 EPS. As a group, equities analysts anticipate that Customers Bancorp will post 8.52 EPS for the current fiscal year.

Customers Bancorp declared that its Board of Directors has approved a stock repurchase plan on Wednesday, February 11th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the bank to repurchase up to 4% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its shares are undervalued.

About Customers Bancorp

Customers Bancorp, Inc NYSE: CUBI is a bank holding company headquartered in Phoenixville, Pennsylvania, and the parent of Customers Bank, a federally chartered institution. The company offers a full suite of commercial and consumer banking services, combining traditional deposit and lending products with modern digital banking platforms. As a publicly traded entity, Customers Bancorp focuses on delivering tailored financial solutions to mid‐market companies, small businesses, professionals and individuals across the United States.

Through its commercial banking division, the company provides term loans, lines of credit, real estate financing, asset‐based lending and treasury management services.

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