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

Customers Bancorp, Inc (NYSE:CUBI) shares rose 6.4% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $83.84 and last traded at $83.75. Approximately 157,416 shares were traded during mid-day 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, topping the consensus estimate of $2.14 by $0.13. Customers Bancorp had a return on equity of 13.80% and a net margin of 19.07%. The company had revenue of $240.24 million during the quarter, compared to analyst estimates of $237.18 million. During the same period in the previous year, the company earned $2.20 EPS.

Key Customers Bancorp News

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

A number of research firms have commented on CUBI. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Customers Bancorp in a research report on Friday, September 25th. Morgan Stanley cut Customers Bancorp from an “equal weight” rating to an “underweight” rating and boosted their price target for the stock from $88.00 to $89.00 in a report on Tuesday, September 8th. DA Davidson boosted their target price on shares of Customers Bancorp from $98.00 to $100.00 and gave the stock a “buy” rating in a research note on Monday, July 27th. Fundamental Research set a $94.00 price target on Customers Bancorp in a research note on Wednesday, July 1st. Finally, Keefe, Bruyette & Woods raised their price objective on Customers Bancorp from $88.00 to $89.00 and gave the company a “market perform” rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Customers Bancorp presently has a consensus rating of “Moderate Buy” and an average price target of $90.82.

Insiders Place Their Bets

In other Customers Bancorp news, Chairman Jay Sidhu sold 68,821 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $80.09, for a total transaction of $5,511,873.89. Following the sale, the chairman owned 667,757 shares of the company’s stock, valued at approximately $53,480,658.13. This represents a 9.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Over the last three months, insiders have sold 100,000 shares of company stock worth $7,981,084. Corporate insiders own 10.45% of the company’s stock.

Hedge Funds Weigh In On Customers Bancorp

A number of large investors have recently modified their holdings of CUBI. Contravisory Investment Management Inc. grew its holdings in shares of Customers Bancorp by 18.1% in the third quarter. Contravisory Investment Management Inc. now owns 4,084 shares of the bank’s stock valued at $302,000 after acquiring an additional 627 shares in the last quarter. GAMMA Investing LLC grew its stake in Customers Bancorp by 8.4% in the 3rd quarter. GAMMA Investing LLC now owns 2,132 shares of the bank’s stock valued at $158,000 after buying an additional 165 shares in the last quarter. Envestnet Portfolio Solutions Inc. raised 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 acquiring an additional 461 shares during the period. WINTON GROUP Ltd raised its holdings in Customers Bancorp by 43.7% during the 2nd quarter. WINTON GROUP Ltd now owns 29,848 shares of the bank’s stock valued at $2,361,000 after acquiring an additional 9,073 shares during the period. Finally, Integrated Wealth Concepts LLC purchased a new stake in shares of Customers Bancorp during the second quarter worth $71,000. 89.29% of the stock is currently owned by institutional investors.

Customers Bancorp Stock Up 6.9%

The stock has a fifty day moving average price of $77.40 and a 200 day moving average price of $77.04. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.00 and a quick ratio of 1.00. The stock has a market capitalization of $2.84 billion, a P/E ratio of 10.26 and a beta of 1.52.

Customers Bancorp Company Profile

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.