Customers Bancorp Downgraded to Market Perform by Keefe, Bruyette & Woods

Customers Bancorp (NYSE:CUBI) has seen its stock rating downgraded by Keefe, Bruyette & Woods from an "outperform" to a "market perform" rating. This change was announced in a report released on Monday, leading to a revision of the bank's price target from $57.00 to $52.00. According to this new target price, there is a potential upside of 13.84% based on the current share price.

In recent months, other analysts have also weighed in on Customers Bancorp. DA Davidson increased its target on the bank's stock from $71.00 to $79.00 and classified it with a "buy" rating. On the other hand, Hovde Group adjusted its rating from "outperform" to "market perform" with a price objective of $49.00. Additionally, Raymond James reduced its price target, decreasing it from $80.00 to $70.00 while maintaining a "strong-buy" rating. B. Riley shared a similar sentiment to DA Davidson, bumping its price target to $78.00 with a "buy" rating as of late July. Meanwhile, Wedbush downgraded Customers Bancorp from "outperform" to a "neutral" rating and set a new price target of $53.00. Currently, three analysts recommend holding the stock, while the ratings include three "buy" calls and one "strong buy". MarketBeat data shows an average rating of "Moderate Buy" for the stock, with an average target price of $62.57.

Current Market Performance

As of Monday, Customers Bancorp's stock opened at $45.68. Its stock price is trending below both its 50-day moving average of $47.26 and its 200-day moving average of $48.92. Over the past year, customers Bancorp's stock has fluctuated, reaching a low of $40.46 and a high of $68.49. The company holds a market cap of $1.45 billion and has a price-to-earnings (P/E) ratio of 7.42.

Financial Results

Customers Bancorp recently released its earnings report for the third quarter on October 31. The bank posted an earnings per share (EPS) of $1.34, which fell short of analysts' expectations that averaged $1.43. Total revenue for the quarter came in at $167.10 million, significantly less than the expected $191.61 million. The company's net margin was recorded at 15.22% and return on equity at 13.79%. These results represented a decline in revenue of 23.2% year-over-year. In the same quarter last year, the bank reported earnings of $2.59 per share. Analysts predict that Customers Bancorp's EPS for the current year will be about 6.11.

Insider Activity

In related news, the CEO of Customers Bancorp, Samvir S. Sidhu, purchased 2,500 shares in a transaction on August 13, at an average price of $45.53 per share. This transaction cost approximately $113,825. After this purchase, the CEO holds a total of 144,504 shares of the bank, valued at around $6.58 million. Insider ownership of the company stands at 6.92%.

Institutional Investments

Several institutional investors recently adjusted their holdings in Customers Bancorp as well. Ridgewood Investments LLC invested in the bank during the second quarter, while GAMMA Investing LLC increased its ownership by 21.7% in the third quarter after buying additional shares. CWM LLC also raised its stake in Customers Bancorp by 14.2%. Overall, institutional investors control about 89.29% of the bank's stock.

About Customers Bancorp

Customers Bancorp is the parent company of Customers Bank, which provides a variety of financial solutions for individual consumers as well as small and medium-sized businesses. The bank offers a range of deposit products, including commercial and consumer checking accounts, savings accounts, and time deposits.

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