WEST READING, PA—Glenn Hedde, President of Mortgage Warehouse Lending at Customers Bancorp, Inc. (NYSE:CUBI), recently sold a portion of his holdings in the company. According to a recent SEC filing, Hedde disposed of 5,002 shares of common stock on November 6, 2024. The transaction, executed at an average price of $53.6782 per share, totaled approximately $268,498.
Following this sale, Hedde retains ownership of 66,256 shares, which includes 15,084 restricted stock units. The sale was conducted in multiple trades, with prices ranging from $53.6733 to $53.8350.
Customers Bancorp, a state commercial bank headquartered in West Reading, Pennsylvania, continues to be a focal point in the financial sector. Investors often keep a close eye on insider transactions such as these for insights into the company's performance and leadership confidence.
In other recent news, Customers Bancorp has witnessed a range of developments. Following the company's third-quarter earnings report, Piper Sandler lowered the stock price target from $61.00 to $55.00, maintaining a neutral stance. The report revealed an earnings per share (EPS) of $1.31, with adjustments for non-recurring items suggesting a core EPS of $1.34. Despite complexities such as a shortfall in net interest income, the bank maintained its growth trajectory.
Simultaneously, Customers Bancorp was subject to an analyst rating adjustment by DA Davidson, which lowered its target price from $65 to $60, while maintaining a buy rating. This was primarily due to a reduced net interest income forecast, now expected to be $679 million. The firm also lowered its 2025 earnings per share estimate for Customers Bancorp to $5.82 from $7.24.
In addition, Customers Bancorp has announced a strategic shift towards becoming a specialized commercial bank. The bank reported a net income of $43.8 million and a 16% annualized loan growth. However, elevated compliance and technology expenses are expected to impact non-interest expenses in Q4. These are some of the recent developments at Customers Bancorp.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Customers Bancorp's financial position and market performance. The company's market capitalization stands at $1.71 billion, with a price-to-earnings ratio of 8.49, suggesting a relatively low valuation compared to earnings. This could be particularly interesting in light of Glenn Hedde's recent stock sale.
InvestingPro Tips highlight that Customers Bancorp has shown a significant return over the last week, with a 20.44% price increase, and a strong 22.24% return over the past month. This recent upward momentum might explain the timing of Hedde's decision to sell a portion of his holdings.
Despite these positive short-term returns, InvestingPro Tips also indicate that eight analysts have revised their earnings downwards for the upcoming period. This, coupled with the expectation that net income may drop this year, could signal some challenges ahead for the bank.
It's worth noting that Customers Bancorp remains profitable, with a revenue of $672.81 million over the last twelve months and an impressive operating income margin of 47.26%. However, the company does not pay a dividend to shareholders, which may influence investor sentiment and insider selling decisions.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Customers Bancorp, providing a deeper understanding of the company's financial health and market position.
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