WEST READING, PA—Robert Neil Mackay, a director at Customers Bancorp, Inc. (NYSE:CUBI), has reported the sale of 4,000 shares of the company's common stock. The transaction, executed on November 20, 2024, was carried out at a price of $53.78 per share, totaling approximately $215,120.
Following this transaction, Mackay holds 4,567 shares directly. The sale was disclosed in a filing with the Securities and Exchange Commission, which was signed by Andrew Sachs under power of attorney on behalf of Mackay.
In other recent news, Customers Bancorp's third-quarter earnings report revealed an operating earnings per share (EPS) of $1.26, surpassing expectations. Despite a quarter-over-quarter decline in net interest margin (NIM) and increased expenses, the bank reported a net income of $43.8 million and a 16% annualized loan growth. Analysts from Stephens, Piper Sandler, and DA Davidson have adjusted their stock price targets for Customers Bancorp following the earnings report, with Stephens raising its target to $55.00, Piper Sandler lowering its target to $55.00, and DA Davidson reducing its target to $60.00.
The bank's deposit growth was strong, with new teams contributing to an increase of $1.1 billion in deposits during the quarter. However, regulatory concerns and charge-off activities have led analysts to maintain a cautious stance on the stock's rating. Amid these developments, Customers Bancorp continues its strategic shift towards becoming a specialized commercial bank.
Elevated compliance and technology expenses are expected to impact non-interest expenses in Q4. DA Davidson has lowered its 2025 earnings per share estimate for Customers Bancorp to $5.82 from $7.24, mainly due to a reduced net interest income forecast. Despite the current challenges, the firm sees potential for balance sheet growth in the second half of 2025. These are all recent developments in Customers Bancorp's strategic vision for the future.
InvestingPro Insights
As Robert Neil Mackay's recent sale of Customers Bancorp, Inc. (NYSE:CUBI) shares catches investor attention, it's worth examining some key financial metrics and insights provided by InvestingPro to gain a more comprehensive view of the company's current standing.
CUBI's stock has shown strong performance recently, with InvestingPro data indicating a notable 20.49% return over the last month. This positive momentum aligns with the company's longer-term performance, as InvestingPro Tips highlight a strong return over the last five years. However, potential investors should be aware that the stock price movements are quite volatile, which could explain why insiders like Mackay might choose to sell some of their holdings.
From a valuation perspective, CUBI trades at a P/E ratio of 8.71, suggesting the stock might be undervalued compared to its peers. The company's market capitalization stands at $1.73 billion, reflecting its mid-cap status in the banking sector. Despite the recent insider sale, InvestingPro Tips indicate that analysts predict the company will remain profitable this year, which could provide some reassurance to shareholders.
It's worth noting that InvestingPro offers additional insights, with 9 more tips available for CUBI, providing a deeper analysis for those considering an investment in the company. These tips could offer valuable context to Mackay's stock sale and help investors make more informed decisions.
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