Insider Selling: Customers Bancorp (NYSE:CUBI) Chairman Sells 60,315 Shares of Stock

Key Points

• Customers Bancorp Chairman Jay Sidhu sold 60,315 shares on May 27 at an average price of $76.23, totaling about $4.6 million. After the sale, he still held 767,557 shares, representing a 7.29% reduction in his stake.
• CUBI shares slipped about 1% in Thursday trading to $75.39, while the company continued to trade near its recent range with a market cap of $2.55 billion and a P/E ratio of 9.57.
• The bank reported stronger-than-expected quarterly results, with EPS of $1.97 topping estimates and revenue rising 57.9% from a year ago. Customers Bancorp also has a $100 million stock buyback authorization and a consensus analyst rating of Moderate Buy.

Customers Bancorp, Inc (NYSE:CUBI - Get Free Report) Chairman Jay Sidhu sold 60,315 shares of the stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $76.23, for a total value of $4,597,812.45. Following the sale, the chairman owned 767,557 shares of the company's stock, valued at approximately $58,510,870.11. The trade was a 7.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Customers Bancorp Stock Down 1.0%

Shares of CUBI traded down $0.73 during trading hours on Thursday, hitting $75.39. The stock had a trading volume of 222,896 shares, compared to its average volume of 378,333. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.01 and a quick ratio of 1.01. The firm has a 50 day simple moving average of $73.37 and a 200-day simple moving average of $72.84. The firm has a market capitalization of $2.55 billion, a P/E ratio of 9.57 and a beta of 1.52. Customers Bancorp, Inc has a 1-year low of $49.54 and a 1-year high of $82.56.

Customers Bancorp (NYSE:CUBI - Get Free Report) last issued its earnings results on Thursday, April 23rd. The bank reported $1.97 EPS for the quarter, beating the consensus estimate of $1.88 by $0.09. The company had revenue of $225.40 million during the quarter, compared to the consensus estimate of $223.51 million. Customers Bancorp had a return on equity of 14.12% and a net margin of 18.63%.The firm's revenue for the quarter was up 57.9% compared to the same quarter last year. During the same period last year, the business posted $1.54 EPS. Sell-side analysts predict that Customers Bancorp, Inc will post 8.52 EPS for the current fiscal year.

Customers Bancorp announced that its Board of Directors has approved a stock buyback plan on Wednesday, February 11th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the bank to repurchase up to 4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Customers Bancorp

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in Customers Bancorp by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 2,221,339 shares of the bank's stock valued at $162,424,000 after acquiring an additional 66,031 shares during the period. Dimensional Fund Advisors LP grew its position in Customers Bancorp by 3.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,942,989 shares of the bank's stock worth $134,859,000 after acquiring an additional 65,954 shares in the last quarter. State Street Corp grew its position in Customers Bancorp by 1.8% in the fourth quarter. State Street Corp now owns 1,832,570 shares of the bank's stock worth $133,998,000 after acquiring an additional 32,449 shares in the last quarter. American Century Companies Inc. grew its position in Customers Bancorp by 7.9% in the third quarter. American Century Companies Inc. now owns 945,825 shares of the bank's stock worth $61,829,000 after acquiring an additional 69,200 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in Customers Bancorp by 3,074.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 871,596 shares of the bank's stock worth $63,732,000 after acquiring an additional 844,141 shares in the last quarter. Institutional investors own 89.29% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on CUBI. Morgan Stanley cut their price target on Customers Bancorp from $92.00 to $83.00 and set an "equal weight" rating for the company in a research note on Tuesday, March 31st. Zacks Research downgraded Customers Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 10th. Weiss Ratings upgraded Customers Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 2nd. Piper Sandler reiterated an "overweight" rating and set a $86.00 price target (up from $82.00) on shares of Customers Bancorp in a research note on Monday, April 27th. Finally, Hovde Group lifted their price target on Customers Bancorp from $80.00 to $86.00 and gave the company a "market perform" rating in a research note on Tuesday, April 28th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $87.50.

About Customers Bancorp

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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