Research Analysts Adjust Expectations for Customers Bancorp's FY2025 Earnings

On January 27th, DA Davidson analysts revised their earnings per share (EPS) forecast for Customers Bancorp, Inc. (NYSE:CUBI). The updated prediction is now set at $6.95 for the fiscal year 2025, a notable increase from their previous estimate of $5.67. This adjustment reflects positive expectations regarding the bank's performance and growth in the upcoming year. Alongside this upward forecast, DA Davidson maintains a “Buy” rating on Customers Bancorp shares, setting a target price of $71.00.

The current consensus estimate among analysts for Customers Bancorp's full-year earnings stands at approximately $5.63 per share. This represents a common benchmark among market participants regarding the bank’s ability to generate earnings.

Other Analyst Recommendations

In the broader context of market analysis, Customers Bancorp has received attention from several other investment firms. Piper Sandler, for instance, reduced its target price for the stock from $61.00 to $55.00, labeling it with a “neutral” rating on November 4th. On the same day, B. Riley increased its price target for Customers Bancorp from $78.00 to $80.00, affirming a “buy” rating. Maxim Group followed suit, also raising its price expectation from $75.00 to $80.00 with a “buy” recommendation. Additionally, StockNews.com upgraded its rating from “sell” to “hold” on December 1st. Meanwhile, Stephens issued an “equal weight” rating with a target price of $58.00 on January 24th.

Across the board, six analysts have currently rated Customers Bancorp with a hold recommendation, while four analysts suggest a buy, and one has issued a strong buy rating. According to MarketBeat.com, the overall average rating for the stock is noted as a “Moderate Buy,” with a consensus target price around $64.00.

Current Trading Status

As of Wednesday, Customers Bancorp shares opened at $57.15. The bank has a market capitalization totaling $1.79 billion and boasts a price-to-earnings (P/E) ratio of 9.28. Over the last year, the stock has fluctuated between a low of $42.31 and a high of $68.49. Analyzing its moving averages reveals a fifty-day average price of $51.66, with a 200-day average of $51.12. Financial ratios show a debt-to-equity ratio of 0.78, a quick ratio of 0.92, and a current ratio of 0.93.

Recent Earnings Performance

On January 23rd, Customers Bancorp reported its quarterly earnings results, revealing an EPS of $1.36, above analysts’ predictions of $1.21. This performance highlights the bank’s robust operational capacity, reflecting a net margin of 15.22% and a return on equity of 13.55%.

Insider Transactions

Insider trading activity has also been noted, with Director Robert Neil Mackay selling 4,000 shares on November 20th for an average price of $53.78. This transaction totaled around $215,120. Following the sale, Mackay holds 4,567 shares presently valued at nearly $245,613. Another insider, Glenn Hedde, divested 5,002 shares on November 6th at a price of $53.68, amounting to $268,507.36. After these sales, Hedde retains 66,256 shares worth approximately $3,556,622. Notably, in the last quarter, insiders sold a total of 112,255 shares, amounting to $6,347,039 in value, with corporate insiders holding about 6.92% of the company’s stock.

Institutional Investment Changes

Recent activity from institutional investors shows some shifts in their stakes in Customers Bancorp. Basswood Capital Management acquired a new stake during the third quarter valued at approximately $26,000. R Squared Ltd joined in with a new position worth about $42,000 in the fourth quarter. Additionally, GAMMA Investing LLC expanded its investment by 21.7% during the third quarter, now owning 1,580 shares worth around $73,000. KBC Group NV also increased its position by 82.8% in the fourth quarter, bringing its total to 1,495 shares valued at $73,000. Furthermore, Quest Partners LLC raised its stake by 143.4%, now holding 1,633 shares valued at $76,000. Overall, institutional investors own about 89.29% of the stock, indicating significant institutional confidence in the bank's prospects.

Company Overview

Customers Bancorp, Inc. operates as the parent company of Customers Bank, providing various financial products and services to individual consumers and small to mid-sized businesses. The bank offers a range of deposit banking products, including commercial and consumer checking accounts, savings accounts, and time deposit accounts.

Banking, Earnings, Investment