Wall Street Zen Downgrades Community Financial System (NYSE:CBU) to Sell

Key Points

• Wall Street Zen downgraded Community Financial System from “hold” to “sell,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $70.25.
• 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; revenue nonetheless increased 12% year over year.
• The stock opened at $64.67, below the $70.25 consensus target, while two company directors recently sold shares. Institutional investors continue to hold a substantial 73.79% stake.

Community Financial System (NYSE:CBU - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Sunday.

A number of other brokerages have also issued reports on CBU. Weiss Ratings raised Community Financial System from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, July 2nd. Raymond James Financial reissued a "strong-buy" rating and issued a $75.00 price objective on shares of Community Financial System in a research note on Thursday, April 30th. Keefe, Bruyette & Woods cut their price objective on Community Financial System from $70.00 to $68.00 and set a "market perform" rating for the company in a report on Thursday. Finally, Piper Sandler raised their target price on Community Financial System from $62.00 to $66.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $70.25.

Community Financial System Stock Performance

Shares of CBU stock opened at $64.67 on Friday. The stock has a 50 day simple moving average of $65.58 and a 200-day simple moving average of $63.11. The company has a market cap of $3.40 billion, a price-to-earnings ratio of 15.00 and a beta of 0.77. Community Financial System has a 12-month low of $51.12 and a 12-month high of $71.11. The company has a current ratio of 0.76, a quick ratio of 0.77 and a debt-to-equity ratio of 0.29.

Community Financial System (NYSE:CBU - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The bank reported $1.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.18 by ($0.02). Community Financial System had a net margin of 21.79% and a return on equity of 11.47%. The company had revenue of $218.45 million during the quarter, compared to the consensus estimate of $221.77 million. During the same quarter last year, the business earned $1.04 earnings per share. The company's revenue was up 12.0% on a year-over-year basis. On average, equities analysts forecast that Community Financial System will post 4.64 EPS for the current year.

Insider Buying and Selling at Community Financial System

In other news, Director Mark J. Bolus sold 12,191 shares of the stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $67.00, for a total transaction of $816,797.00. Following the completion of the sale, the director owned 94,060 shares in the company, valued at approximately $6,302,020. This represents a 11.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Eric Stickels sold 2,000 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $63.98, for a total value of $127,960.00. Following the sale, the director directly owned 31,592 shares of the company's stock, valued at approximately $2,021,256.16. This represents a 5.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.15% of the stock is currently owned by corporate insiders.

Institutional Trading of Community Financial System

Several institutional investors and hedge funds have recently bought and sold shares of the stock. IFP Advisors Inc raised its stake in Community Financial System by 507.0% during the 4th 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 boosted its position in shares of Community Financial System by 38.4% in the second quarter. GAMMA Investing LLC now owns 541 shares of the bank's stock worth $36,000 after buying an additional 150 shares during the period. EverSource Wealth Advisors LLC grew its holdings in shares of Community Financial System by 177.0% during the second quarter. EverSource Wealth Advisors LLC now owns 781 shares of the bank's stock valued at $44,000 after buying an additional 499 shares in the last quarter. Lipe & Dalton purchased a new position in shares of Community Financial System during the fourth quarter valued at $52,000. Finally, Strs Ohio acquired a new position in Community Financial System during the first quarter valued at $102,000. Institutional investors and hedge funds own 73.79% of the company's stock.

Community Financial System Company Profile

Community Financial System NYSE: CBU is the bank holding company for Community Bank, National Association, a full-service commercial bank headquartered in DeWitt, New York. Through its principal subsidiary, the company offers a range of banking and financial services designed to meet the needs of both consumer and business clients. Its organizational structure centers on community-based banking operations supported by centralized technology, risk management and administrative functions.

The company's product offerings include deposit accounts, residential and commercial mortgage loans, commercial and consumer lending, treasury and cash management services, and electronic banking.

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