Bank of New York Mellon Corp Makes New Investment in Community Financial System, Inc. $CBU

Key Points

• Bank of New York Mellon initiated a sizable position in Community Financial System, purchasing 544,140 shares worth about $36.5 million, or approximately 1.04% of the company. Institutional investors collectively own 73.79% of CBU.
• Community Financial System reported quarterly EPS of $1.16, slightly below the $1.18 analyst consensus, while revenue rose 12% year over year to $218.45 million. Shares recently opened at $63.15, compared with a consensus analyst price target of $71.50.
• The company increased its quarterly dividend from $0.47 to $0.49 per share, representing an annualized dividend of $1.96 and a 3.1% yield.

Bank of New York Mellon Corp bought a new stake in Community Financial System, Inc. (NYSE:CBU - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 544,140 shares of the bank's stock, valued at approximately $36,523,000. Bank of New York Mellon Corp owned approximately 1.04% of Community Financial System as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Community Financial System during the 4th quarter worth $38,993,000. Bank of America Corp DE lifted its stake in shares of Community Financial System by 132.9% in the third quarter. Bank of America Corp DE now owns 636,257 shares of the bank's stock valued at $37,310,000 after purchasing an additional 363,012 shares during the period. Basswood Capital Management L.L.C. acquired a new stake in shares of Community Financial System in the second quarter valued at about $15,185,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Community Financial System by 10,989.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 200,049 shares of the bank's stock worth $11,491,000 after buying an additional 198,245 shares in the last quarter. Finally, UBS Group AG boosted its holdings in Community Financial System by 129.6% during the third quarter. UBS Group AG now owns 276,438 shares of the bank's stock worth $16,210,000 after buying an additional 156,049 shares in the last quarter. 73.79% of the stock is owned by hedge funds and other institutional investors.

Community Financial System Stock Performance

Shares of CBU stock opened at $63.15 on Friday. 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 firm has a market capitalization of $3.32 billion, a price-to-earnings ratio of 14.65 and a beta of 0.78. Community Financial System, Inc. has a one year low of $53.46 and a one year high of $71.11. The company has a 50 day moving average price of $65.93 and a 200 day moving average price of $63.36.

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

Community Financial System Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 13th. Stockholders of record on Tuesday, September 15th will be issued a $0.49 dividend. This is a positive change from Community Financial System's previous quarterly dividend of $0.47. The ex-dividend date is Tuesday, September 15th. This represents a $1.96 dividend on an annualized basis and a dividend yield of 3.1%. Community Financial System's dividend payout ratio (DPR) is 43.62%.

Insider Transactions at Community Financial System

In other news, Director Eric Stickels sold 2,000 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $63.98, for a total transaction of $127,960.00. Following the completion of the sale, the director owned 31,592 shares in the company, valued at approximately $2,021,256.16. The trade was a 5.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Brenda M. Hall bought 476 shares of the company's stock in a transaction that occurred on Monday, August 24th. The shares were acquired at an average cost of $63.59 per share, with a total value of $30,268.84. Following the transaction, the director owned 515 shares in the company, valued at approximately $32,748.85. This represents a 1,220.51% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 1.15% of the company's stock.

Analyst Ratings Changes

Several research firms recently weighed in on CBU. Keefe, Bruyette & Woods dropped their price objective on Community Financial System from $70.00 to $68.00 and set a "market perform" rating for the company in a research note on Thursday, July 30th. Piper Sandler boosted their target price 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. Wall Street Zen raised Community Financial System from a "sell" rating to a "hold" rating in a report on Monday, August 10th. Finally, Weiss Ratings upgraded Community Financial System from a "buy (b-)" rating to a "buy (b)" rating in a research 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. Based on data from MarketBeat, Community Financial System currently has a consensus rating of "Moderate Buy" and a consensus target price of $71.50.

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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