Insider Selling: Customers Bancorp (NYSE:CUBI) Chairman Sells 50,000 Shares of Stock

Key Points

• Customers Bancorp Chairman Jay Sidhu sold 50,000 shares at an average price of $87.40, generating approximately $4.37 million. His remaining direct ownership fell 7.49% to 617,864 shares.
• CUBI recently exceeded earnings expectations, reporting $2.27 in quarterly EPS versus the $2.14 consensus and revenue of $240.24 million versus estimates of $237.18 million.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $94.36, while institutional investors own 89.29% of the stock.

Customers Bancorp, Inc (NYSE:CUBI - Get Free Report) Chairman Jay Sidhu sold 50,000 shares of the stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $87.40, for a total value of $4,370,000.00. Following the completion of the transaction, the chairman directly owned 617,864 shares of the company's stock, valued at approximately $54,001,313.60. This represents a 7.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Customers Bancorp Price Performance

CUBI stock traded up $2.20 during midday trading on Monday, reaching $86.36. The stock had a trading volume of 354,895 shares, compared to its average volume of 340,935. Customers Bancorp, Inc has a 52-week low of $63.44 and a 52-week high of $88.04. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 1.05. The company's fifty day simple moving average is $77.99 and its 200 day simple moving average is $75.90. The company has a market cap of $2.92 billion, a price-to-earnings ratio of 10.47 and a beta of 1.43.

Customers Bancorp (NYSE:CUBI - Get Free Report) last released its earnings results on Thursday, October 22nd. The bank reported $2.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.14 by $0.13. The business had revenue of $240.24 million during the quarter, compared to analyst estimates of $237.18 million. Customers Bancorp had a net margin of 19.11% and a return on equity of 13.73%. During the same quarter in the prior year, the firm earned $2.20 earnings per share. As a group, sell-side analysts predict that Customers Bancorp, Inc will post 8.55 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have commented on CUBI shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Customers Bancorp in a report on Friday, September 25th. DA Davidson set a $107.00 target price on Customers Bancorp in a report on Monday, October 26th. Keefe, Bruyette & Woods upped their price target on Customers Bancorp from $88.00 to $89.00 and gave the company a "market perform" rating in a research report on Monday, August 3rd. Morgan Stanley restated an "underweight" rating and issued a $97.00 price target on shares of Customers Bancorp in a research report on Monday, October 26th. Finally, Piper Sandler reaffirmed an "overweight" rating and issued a $102.00 price target (up from $92.00) on shares of Customers Bancorp in a report on Monday, October 26th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Customers Bancorp currently has a consensus rating of "Moderate Buy" and an average target price of $94.36.

Institutional Investors Weigh In On Customers Bancorp

A number of hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in Customers Bancorp during the second quarter worth about $385,165,000. Tieton Capital Management LLC purchased a new stake in shares of Customers Bancorp in the 2nd quarter valued at approximately $20,264,000. Bank of New York Mellon Corp acquired a new stake in shares of Customers Bancorp during the 2nd quarter worth approximately $16,369,000. Empowered Funds LLC acquired a new stake in shares of Customers Bancorp during the 2nd quarter worth approximately $12,505,000. Finally, Heartland Advisors Inc. purchased a new stake in shares of Customers Bancorp during the 2nd quarter valued at approximately $11,865,000. Hedge funds and other institutional investors own 89.29% of the company's stock.

Customers Bancorp Company Profile

Customers Bancorp, Inc is a bank holding company headquartered in Wyomissing, Pennsylvania. Through its principal subsidiary, Customers Bank, the company provides banking and financial services to businesses, entrepreneurs, professionals and consumers in the United States.

Customers Bank offers commercial and industrial lending, commercial real estate financing, small business lending, mortgage warehouse financing, venture banking and other specialized credit products. Its services also include business and consumer deposit accounts, cash management, treasury services, online banking and payment solutions.

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