Customers Bancorp (NYSE:CUBI) Shares Up 6.4% Following Better-Than-Expected Earnings

Key Points

• Customers Bancorp shares rose 6.4% after the bank reported third-quarter EPS of $2.27, beating the $2.14 consensus estimate, while revenue of $240.24 million also exceeded expectations.
• Profitability remained solid, with a 19.07% net margin and 13.80% return on equity; the stock trades at roughly 10.26 times earnings.
• Analyst sentiment is favorable, with a consensus “Moderate Buy” rating and an average price target of $90.82, although insiders have sold 100,000 shares over the past 90 days.

Customers Bancorp, Inc (NYSE:CUBI - Get Free Report)'s share price rose 6.4% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $83.84 and last traded at $83.75. Approximately 157,416 shares changed hands during trading, a decline of 53% from the average session volume of 335,758 shares. The stock had previously closed at $78.73.

The bank reported $2.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.14 by $0.13. Customers Bancorp had a net margin of 19.07% and a return on equity of 13.80%. The business had revenue of $240.24 million for the quarter, compared to analyst estimates of $237.18 million. During the same quarter in the prior year, the business posted $2.20 EPS.

Customers Bancorp News Roundup

Here are the key news stories impacting Customers Bancorp this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Customers Bancorp reported earnings of $2.27 per share, above the $2.14–$2.15 analyst consensus and up from $2.20 a year earlier. Revenue reached $240.24 million, also ahead of the $237.18 million estimate. Customers Bancorp Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Profitability remained solid. The bank posted a 13.80% return on equity and a 19.07% net margin, while reports also indicated that third-quarter core earnings and revenue increased. These results support the view that operating performance remains resilient. Customers Bancorp Q3 Core Earnings and Revenue Rise
• Positive Sentiment: Brokerage sentiment is constructive. Sell-side brokerages collectively rate CUBI a “Moderate Buy,” providing additional support for the stock following the earnings beat. Customers Bancorp Stock Rated Moderate Buy
• Neutral Sentiment: Investors will likely focus on the conference call and detailed quarterly metrics for evidence that the earnings improvement can continue, including how reported operating measures compared with Wall Street forecasts and the year-ago period. Customers Bancorp Reports Third-Quarter Results

Analysts Set New Price Targets

Several brokerages have recently weighed in on CUBI. Weiss Ratings restated a "buy (b)" rating on shares of Customers Bancorp in a report on Friday, September 25th. DA Davidson raised their target price on Customers Bancorp from $98.00 to $100.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. Piper Sandler lifted their price target on Customers Bancorp from $86.00 to $92.00 and gave the company an "overweight" rating in a report on Friday, June 26th. JPMorgan Chase & Co. dropped their price target on Customers Bancorp from $96.00 to $92.00 and set an "overweight" rating on the stock in a research report on Thursday, October 1st. Finally, TD Cowen reduced their price objective on Customers Bancorp from $94.00 to $91.00 and set a "buy" rating for the company in a research note on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $90.82.

Insider Activity at Customers Bancorp

In other news, Chairman Jay Sidhu sold 68,821 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $80.09, for a total transaction of $5,511,873.89. Following the completion of the sale, the chairman directly owned 667,757 shares of the company's stock, valued at $53,480,658.13. This trade represents a 9.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In the last 90 days, insiders have sold 100,000 shares of company stock worth $7,981,084. Insiders own 10.45% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Contravisory Investment Management Inc. grew its stake in shares of Customers Bancorp by 18.1% in the 3rd quarter. Contravisory Investment Management Inc. now owns 4,084 shares of the bank's stock valued at $302,000 after purchasing an additional 627 shares during the period. GAMMA Investing LLC lifted its holdings in Customers Bancorp by 8.4% during the 3rd quarter. GAMMA Investing LLC now owns 2,132 shares of the bank's stock valued at $158,000 after purchasing an additional 165 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in Customers Bancorp by 6.9% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 7,104 shares of the bank's stock valued at $562,000 after purchasing an additional 461 shares during the last quarter. WINTON GROUP Ltd boosted its position in Customers Bancorp by 43.7% in the second quarter. WINTON GROUP Ltd now owns 29,848 shares of the bank's stock valued at $2,361,000 after buying an additional 9,073 shares in the last quarter. Finally, Integrated Wealth Concepts LLC bought a new stake in Customers Bancorp during the second quarter worth about $71,000. 89.29% of the stock is owned by institutional investors.

Customers Bancorp Trading Up 6.9%

The company has a market cap of $2.84 billion, a price-to-earnings ratio of 10.26 and a beta of 1.52. The company's fifty day moving average price is $77.40 and its two-hundred day moving average price is $77.04. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.01.

About Customers Bancorp

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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