Community Trust Bancorp (NASDAQ:CTBI) Shares Gap Down Following Weak Earnings

Key Points

• Community Trust Bancorp shares fell sharply after the bank reported quarterly earnings of $1.43 per share, missing analyst expectations of $1.65. Revenue was also slightly below estimates at $79.70 million versus $80.20 million.
• The stock opened at $71.87 after previously closing at $75.30 and later traded around $69.21, an approximately 8.4% decline. The company has a $1.25 billion market capitalization and a price-to-earnings ratio of 11.60.
• Despite the earnings miss, analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $81.50. Institutional investors own 60.20% of the company, while an insider recently sold shares worth approximately $307,515.

Community Trust Bancorp, Inc. (NASDAQ:CTBI - Get Free Report) shares gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $75.30, but opened at $71.87. Community Trust Bancorp shares last traded at $69.2080, with a volume of 18,608 shares.

The financial services provider reported $1.43 earnings per share for the quarter, missing the consensus estimate of $1.65 by ($0.22). Community Trust Bancorp had a net margin of 25.55% and a return on equity of 12.52%. The business had revenue of $79.70 million during the quarter, compared to analyst estimates of $80.20 million.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CTBI. Piper Sandler raised their price target on shares of Community Trust Bancorp from $76.00 to $81.00 and gave the company a "neutral" rating in a research note on Thursday, July 16th. Weiss Ratings raised shares of Community Trust Bancorp from a "buy (a-)" rating to a "buy (a)" rating in a report on Thursday, October 8th. Finally, Raymond James Financial started coverage on shares of Community Trust Bancorp in a research report on Tuesday, September 1st. They set an "outperform" rating and a $82.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Community Trust Bancorp currently has an average rating of "Moderate Buy" and a consensus target price of $81.50.

Insiders Place Their Bets

In other Community Trust Bancorp news, Director Franky Minnifield sold 3,900 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $78.85, for a total value of $307,515.00. Following the completion of the transaction, the director owned 8,320 shares of the company's stock, valued at $656,032. This represents a 31.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Community Trust Bancorp

Several large investors have recently bought and sold shares of CTBI. Integrated Wealth Concepts LLC acquired a new position in Community Trust Bancorp in the 2nd quarter valued at approximately $37,000. Quantbot Technologies LP bought a new position in shares of Community Trust Bancorp during the second quarter valued at $40,000. USA Financial Formulas bought a new position in shares of Community Trust Bancorp during the third quarter valued at $71,000. Nisa Investment Advisors LLC raised its stake in shares of Community Trust Bancorp by 36.3% during the third quarter. Nisa Investment Advisors LLC now owns 1,359 shares of the financial services provider's stock valued at $102,000 after acquiring an additional 362 shares during the last quarter. Finally, Farther Finance Advisors LLC lifted its holdings in shares of Community Trust Bancorp by 8.5% during the third quarter. Farther Finance Advisors LLC now owns 1,819 shares of the financial services provider's stock worth $135,000 after purchasing an additional 142 shares during the period. 60.20% of the stock is currently owned by institutional investors.

Community Trust Bancorp Trading Down 8.4%

The company has a market cap of $1.25 billion, a price-to-earnings ratio of 11.60 and a beta of 0.54. The business's fifty day moving average price is $76.14 and its 200 day moving average price is $71.87. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.94 and a quick ratio of 0.94.

About Community Trust Bancorp

Community Trust Bancorp, Inc is a bank holding company headquartered in Pikeville, Kentucky. Through its principal subsidiary, Community Trust Bank, the company provides banking and financial services to individuals, businesses and organizations.

Its products and services include checking and savings accounts, certificates of deposit, consumer and mortgage loans, commercial lending, agricultural financing and other credit products. Community Trust also offers trust and wealth-management services, investment products, insurance and digital banking tools.

Community Trust Bank traces its history to 1903 and has developed a regional banking network serving communities primarily throughout eastern and central Kentucky, as well as portions of southern West Virginia.

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