Customers Bancorp, Inc. (NYSE:CUBI) experienced a significant surge in its share price, reaching a new 52-week high of $72.56 during trading on Thursday. The stock closed at $72.70, with a trading volume of 123,600 shares, up from the previous close of $70.95. This upward trend has sparked interest among investors, prompting discussions about whether it is a good time to buy.
Analysts’ Ratings and Price Targets
Several equities analysts have recently offered their insights on Customers Bancorp. On October 27, 2023, Weiss Ratings reaffirmed a “hold (C+)” rating. In the same period, B. Riley and Cowen both maintained “buy” ratings. Notably, DA Davidson raised its price target from $77.00 to $88.00, while TD Cowen increased its target from $89.00 to $95.00.
Overall, the consensus rating for Customers Bancorp stands at “Moderate Buy,” with an average target price of $82.88. There is one analyst with a “Strong Buy” rating, five with “Buy” ratings, and four rating the stock as a “Hold.”
Recent Financial Performance
Customers Bancorp recently reported its earnings for the quarter ending September 8, 2023. The bank achieved earnings per share (EPS) of $1.80, with a return on equity of 13.24% and a net margin of 12.43%. The company generated revenue of $206.82 million for the quarter. Analysts forecast an EPS of $6.45 for the current fiscal year.
Despite the positive financial news, Customers Bancorp’s stock dipped by 0.4% following the earnings report, indicating some volatility in investor sentiment.
Insider Transactions and Institutional Holdings
Recent insider trading activity at Customers Bancorp has raised eyebrows. On November 7, 2023, Director Bernard Bennett Banks sold 9,000 shares at an average price of $66.93, totaling approximately $602,370. Following this sale, Banks retained 7,524 shares valued at around $503,581, representing a 54.47% decrease in his holdings.
Additionally, Executive Vice President Philip Watkins sold 2,900 shares on November 24 for approximately $188,616. After this transaction, he owned 50,849 shares valued at about $3.3 million, marking a 5.40% decline in his position.
In the past 90 days, insiders have sold a total of 211,900 shares, worth around $14.6 million, while insiders currently hold 8.69% of the company’s stock.
Investor Activity and Market Outlook
Recent movements among large investors also reflect interest in Customers Bancorp. The Arizona State Retirement System increased its stake by 1.8% in the third quarter, now holding 8,879 shares valued at $580,000. Similarly, AllianceBernstein L.P. and Teacher Retirement System of Texas made modest increases to their positions during the same period.
Currently, institutional investors control 89.29% of Customers Bancorp’s stock, which suggests substantial confidence in the company’s future prospects.
As Customers Bancorp continues to navigate the financial landscape, analysts and investors alike will be closely monitoring its performance and market trends to determine the best course of action.
