Community Financial System, Inc. $CBU Shares Newly Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 246,960 shares of Community Financial System worth approximately $16.6 million, giving it a 0.47% stake. Institutional investors and hedge funds collectively own 73.79% of the company.
• Community Financial System missed quarterly expectations, reporting $1.16 in EPS versus the $1.18 consensus and revenue of $218.45 million versus $221.77 million expected, though revenue rose 12% year over year.
• The company raised its quarterly dividend from $0.47 to $0.49 per share, implying an annualized dividend of $1.96 and a 3.2% yield. Analysts maintain a “Moderate Buy” consensus with a $71.50 target price.

Bank of America Corp DE bought a new stake in Community Financial System, Inc. (NYSE:CBU - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 246,960 shares of the bank's stock, valued at approximately $16,576,000. Bank of America Corp DE owned approximately 0.47% of Community Financial System at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of the company. IFP Advisors Inc grew its position in shares of Community Financial System by 507.0% in the fourth quarter. IFP Advisors Inc now owns 522 shares of the bank's stock valued at $30,000 after purchasing an additional 436 shares during the period. GAMMA Investing LLC grew its holdings in Community Financial System by 38.4% in the 2nd quarter. GAMMA Investing LLC now owns 541 shares of the bank's stock valued at $36,000 after buying an additional 150 shares during the period. Manning & Napier Advisors LLC acquired a new position in shares of Community Financial System during the 2nd quarter valued at about $116,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Community Financial System during the 2nd quarter worth about $124,000. Finally, Wealthcare Capital Partners LLC acquired a new stake in shares of Community Financial System in the second quarter worth approximately $201,000. 73.79% of the stock is owned by institutional investors and hedge funds.

Community Financial System Stock Up 0.3%

Shares of Community Financial System stock opened at $60.84 on Friday. The company has a fifty day moving average price of $64.17 and a 200 day moving average price of $63.20. The company has a current ratio of 0.77, a quick ratio of 0.77 and a debt-to-equity ratio of 0.29. Community Financial System, Inc. has a twelve month low of $53.46 and a twelve month high of $71.11. The stock has a market cap of $3.20 billion, a price-to-earnings ratio of 14.12 and a beta of 0.77.

Community Financial System (NYSE:CBU - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The bank reported $1.16 EPS for the quarter, missing analysts' consensus estimates 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 company had revenue of $218.45 million for the quarter, compared to analyst estimates of $221.77 million. During the same quarter in the prior year, the firm earned $1.04 EPS. The company's revenue for the quarter was up 12.0% compared to the same quarter last year. Equities research analysts forecast that Community Financial System, Inc. will post 4.58 earnings per share for the current fiscal 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 paid a dividend of $0.49 per share. This is an increase from Community Financial System's previous quarterly dividend of $0.47. This represents a $1.96 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Tuesday, September 15th. Community Financial System's payout ratio is 45.48%.

Insider Activity at Community Financial System

In other news, Director Brenda M. Hall purchased 476 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was acquired at an average cost of $63.59 per share, with a total value of $30,268.84. Following the acquisition, the director owned 515 shares in the company, valued at approximately $32,748.85. This trade represents a 1,220.51% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 1.15% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Keefe, Bruyette & Woods cut their price target on shares of Community Financial System from $70.00 to $68.00 and set a "market perform" rating on the stock in a research note on Thursday, July 30th. Piper Sandler increased 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 research report on Monday, August 10th. Finally, Weiss Ratings upgraded Community Financial System from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $71.50.

About Community Financial System

Community Financial System, Inc NYSE: CBU is a diversified financial services company headquartered in DeWitt, New York. Formerly known as Community Bank System, Inc, the company changed its name in 2024 to reflect the broader range of services offered beyond traditional banking.

Through its Community Bank, N.A. subsidiary, the company provides personal and business banking services, including deposit accounts, consumer and commercial lending, mortgages, cash management, and electronic banking.

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