Zacks Research Downgrades Customers Bancorp (NYSE:CUBI) to Hold

Key Points

• Zacks Research downgraded Customers Bancorp (CUBI) from "strong‑buy" to "hold"; ratings are mixed across analysts but the MarketBeat consensus remains a Moderate Buy with an average target of $88.18.
• In the most recent quarter CUBI reported $2.06 EPS (beating $2.04) and $236.9M in revenue (above estimates), with a 15.15% net margin and 14.05% ROE; analysts project about 6.45 EPS for the fiscal year.
• The board approved a $100 million share repurchase program (up to ~4% of shares), indicating management believes the stock may be undervalued.

Customers Bancorp (NYSE:CUBI - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the stock. Wall Street Zen downgraded shares of Customers Bancorp from a "buy" rating to a "hold" rating in a research report on Sunday, January 25th. JPMorgan Chase & Co. initiated coverage on shares of Customers Bancorp in a research report on Friday, March 6th. They set an "overweight" rating and a $90.00 target price on the stock. TD Cowen restated a "buy" rating on shares of Customers Bancorp in a research note on Monday, January 26th. DA Davidson upped their target price on Customers Bancorp from $93.00 to $95.00 and gave the company a "buy" rating in a report on Monday, January 26th. Finally, Weiss Ratings raised Customers Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $88.18.

Customers Bancorp Trading Down 0.6%

NYSE CUBI opened at $66.59 on Tuesday. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.76. The business has a fifty day simple moving average of $74.36 and a 200 day simple moving average of $70.62. Customers Bancorp has a 12 month low of $40.75 and a 12 month high of $82.56. The firm has a market capitalization of $2.28 billion, a P/E ratio of 10.74 and a beta of 1.66.

Customers Bancorp (NYSE:CUBI - Get Free Report) last posted its earnings results on Thursday, January 22nd. The bank reported $2.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.04 by $0.02. The firm had revenue of $236.90 million during the quarter, compared to analyst estimates of $200.38 million. Customers Bancorp had a net margin of 15.15% and a return on equity of 14.05%. During the same quarter in the prior year, the business posted $1.36 EPS. On average, analysts predict that Customers Bancorp will post 6.45 EPS for the current fiscal year.

Customers Bancorp announced that its board has initiated a share repurchase program on Wednesday, February 11th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the bank to reacquire up to 4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CUBI. Arax Advisory Partners increased its stake in shares of Customers Bancorp by 218.9% during the 4th quarter. Arax Advisory Partners now owns 354 shares of the bank's stock worth $26,000 after purchasing an additional 243 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Customers Bancorp in the 3rd quarter worth approximately $29,000. Jones Financial Companies Lllp purchased a new position in Customers Bancorp in the first quarter valued at approximately $37,000. Transamerica Financial Advisors LLC lifted its stake in Customers Bancorp by 216.0% in the fourth quarter. Transamerica Financial Advisors LLC now owns 591 shares of the bank's stock valued at $43,000 after purchasing an additional 404 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its holdings in Customers Bancorp by 63.1% during the third quarter. Farther Finance Advisors LLC now owns 672 shares of the bank's stock valued at $44,000 after purchasing an additional 260 shares during the period. 89.29% of the stock is currently owned by hedge funds and other institutional investors.

Customers Bancorp Company Profile

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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