Customers Bancorp, Inc (NYSE:CUBI) Short Interest Update

Key Points

• Short interest rose 20.4% in March to 2,440,020 shares (about 7.8% of the stock) with a days-to-cover ratio of 5.9, signaling increased bearish bets and potential trading pressure.
• The company authorized a $100.00 million share repurchase (up to 4% of shares) after reporting an earnings beat (EPS $2.06 vs. $2.04) and is trading around $77.38 with a market cap of $2.61 billion and a P/E of 12.48.
• Analysts hold a consensus of " Moderate Buy" with an average price target of $86.42, though ratings are mixed—Morgan Stanley cut its target to $83 while Raymond James reiterated a strong-buy at $95.

Customers Bancorp, Inc (NYSE:CUBI - Get Free Report) was the recipient of a large growth in short interest during the month of March. As of March 31st, there was short interest totaling 2,440,020 shares, a growth of 20.4% from the March 15th total of 2,026,657 shares. Currently, 7.8% of the company's stock are short sold. Based on an average daily volume of 414,449 shares, the days-to-cover ratio is currently 5.9 days.

Analysts Set New Price Targets

CUBI has been the topic of a number of research analyst reports. Morgan Stanley dropped their target price on shares of Customers Bancorp from $92.00 to $83.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 31st. TD Cowen reissued a "buy" rating on shares of Customers Bancorp in a research report on Monday, January 26th. Stephens upgraded Customers Bancorp from an "underweight" rating to an "equal weight" rating and set a $71.00 price objective on the stock in a research note on Monday, March 16th. Maxim Group set a $100.00 price objective on Customers Bancorp in a research report on Monday, January 26th. Finally, Raymond James Financial reiterated a "strong-buy" rating and set a $95.00 target price on shares of Customers Bancorp in a research note on Tuesday, January 6th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $86.42.

Customers Bancorp Stock Performance

NYSE CUBI traded up $1.77 on Friday, reaching $77.38. The stock had a trading volume of 427,479 shares, compared to its average volume of 352,134. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.00 and a quick ratio of 1.00. The company has a market cap of $2.61 billion, a P/E ratio of 12.48 and a beta of 1.57. The firm has a fifty day moving average of $70.45 and a two-hundred day moving average of $70.95. Customers Bancorp has a 1-year low of $43.67 and a 1-year high of $82.56.

Customers Bancorp (NYSE:CUBI - Get Free Report) last announced its earnings results on Thursday, January 22nd. The bank reported $2.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.04 by $0.02. Customers Bancorp had a net margin of 15.15% and a return on equity of 14.05%. The company had revenue of $236.90 million during the quarter, compared to analysts' expectations of $200.38 million. During the same quarter in the previous year, the business posted $1.36 earnings per share. On average, equities research analysts anticipate that Customers Bancorp will post 6.45 EPS for the current year.

Customers Bancorp announced that its board has authorized a share repurchase plan on Wednesday, February 11th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the bank to purchase up to 4% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Customers Bancorp

Large investors have recently added to or reduced their stakes in the stock. Arizona State Retirement System raised its holdings in Customers Bancorp by 1.8% in the 3rd quarter. Arizona State Retirement System now owns 8,879 shares of the bank's stock valued at $580,000 after acquiring an additional 155 shares in the last quarter. Lido Advisors LLC grew its holdings in shares of Customers Bancorp by 3.0% during the 4th quarter. Lido Advisors LLC now owns 6,135 shares of the bank's stock worth $412,000 after purchasing an additional 178 shares in the last quarter. Alliancebernstein L.P. increased its position in shares of Customers Bancorp by 0.5% in the third quarter. Alliancebernstein L.P. now owns 34,054 shares of the bank's stock worth $2,226,000 after purchasing an additional 182 shares during the period. MetLife Investment Management LLC increased its position in shares of Customers Bancorp by 1.3% in the fourth quarter. MetLife Investment Management LLC now owns 17,625 shares of the bank's stock worth $1,289,000 after purchasing an additional 230 shares during the period. Finally, Arax Advisory Partners raised its stake in Customers Bancorp by 218.9% in the fourth quarter. Arax Advisory Partners now owns 354 shares of the bank's stock valued at $26,000 after purchasing an additional 243 shares in the last quarter. Institutional investors and hedge funds own 89.29% of the company's stock.

Customers Bancorp Company Profile

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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