Basswood Capital Management L.L.C. Purchases New Stake in Community Financial System, Inc. $CBU

Key Points

• Basswood Capital Management acquired 321,017 shares of Community Financial System, worth approximately $21.5 million, giving it a 0.61% stake. Institutional investors and hedge funds collectively own 73.79% of the company.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $71.50, compared with a recent price of $63.16.
• Community Financial System raised its quarterly dividend from $0.47 to $0.49 per share, equivalent to a $1.96 annualized payout and a 3.1% yield. The company’s latest quarterly earnings slightly missed estimates, although revenue increased 12% year over year.

Basswood Capital Management L.L.C. acquired a new stake in shares of Community Financial System, Inc. (NYSE:CBU - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 321,017 shares of the bank's stock, valued at approximately $21,547,000. Basswood Capital Management L.L.C. owned about 0.61% of Community Financial System at the end of the most recent reporting period.

Other hedge funds also recently added to or reduced their stakes in the company. IFP Advisors Inc increased its position in shares of Community Financial System by 507.0% in the 4th quarter. IFP Advisors Inc now owns 522 shares of the bank's stock worth $30,000 after purchasing an additional 436 shares during the last quarter. GAMMA Investing LLC lifted its position in shares of Community Financial System by 38.4% during the second quarter. GAMMA Investing LLC now owns 541 shares of the bank's stock worth $36,000 after purchasing an additional 150 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of Community Financial System by 177.0% during the second quarter. EverSource Wealth Advisors LLC now owns 781 shares of the bank's stock worth $44,000 after purchasing an additional 499 shares during the last quarter. Strs Ohio acquired a new position in Community Financial System in the first quarter worth about $102,000. Finally, Manning & Napier Advisors LLC acquired a new position in Community Financial System in the second quarter worth about $116,000. 73.79% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Wall Street Zen upgraded Community Financial System from a "sell" rating to a "hold" rating in a research note on Monday, August 10th. Piper Sandler lifted 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. Raymond James Financial reiterated a "strong-buy" rating and issued a $75.00 target price on shares of Community Financial System in a research report on Thursday, April 30th. Weiss Ratings upgraded Community Financial System from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, July 2nd. Finally, Keefe, Bruyette & Woods dropped their price target on Community Financial System from $70.00 to $68.00 and set a "market perform" rating on the stock in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $71.50.

Community Financial System Trading Up 0.4%

NYSE CBU opened at $63.16 on Thursday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.77 and a current ratio of 0.77. 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 simple moving average of $65.89 and a 200-day simple moving average of $63.38. The firm has a market capitalization of $3.32 billion, a PE ratio of 14.65 and a beta of 0.78.

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

Community Financial System Increases Dividend

The business 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. This represents a $1.96 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Tuesday, September 15th. This is a positive change from Community Financial System's previous quarterly dividend of $0.47. Community Financial System's payout ratio is currently 43.62%.

Insider Buying and Selling

In related news, Director Mark J. Bolus sold 12,191 shares of the company's stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $67.00, for a total transaction of $816,797.00. Following the completion of the transaction, the director directly owned 94,060 shares in the company, valued at $6,302,020. This represents a 11.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Brenda M. Hall acquired 476 shares of the stock in a transaction that occurred on Monday, August 24th. The shares were bought at an average price of $63.59 per share, with a total value of $30,268.84. Following the completion of the purchase, the director owned 515 shares in the company, valued at $32,748.85. The trade was a 1,220.51% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 1.15% of the company's stock.

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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