Erste Asset Management GmbH has increased its stake in Citizens Financial Group, Inc. (NYSE: CFG) by 14.6% in the third quarter of 2023, according to a recent 13F filing with the Securities and Exchange Commission. The firm now holds 93,740 shares of the bank’s stock, valued at approximately $5,029,000 following the acquisition of an additional 11,963 shares during the quarter.
This move comes as part of a broader trend among institutional investors, with several hedge funds adjusting their positions in Citizens Financial Group. For instance, True Wealth Design LLC has significantly increased its stake by 891.5% during the third quarter, now owning 585 shares worth $31,000 after purchasing an additional 526 shares. Similarly, Capital A Wealth Management LLC grew its position by 3,970.0% in the second quarter, owning 814 shares valued at $36,000.
Other notable changes include State of Wyoming acquiring a new position valued at $39,000 and Kestra Investment Management LLC increasing its position by 2,703.0%, now holding 925 shares worth $41,000. Overall, institutional investors currently own 94.90% of Citizens Financial Group’s stock.
Analysts Show Confidence in Citizens Financial Group
Several brokerages have recently issued positive reports on Citizens Financial Group. New Street Research set a target price of $73.00 for the stock, while DA Davidson raised its price objective from $65.00 to $73.00, maintaining a “buy” rating. The Goldman Sachs Group reiterated a “buy” rating with the same target price of $73.00, and Jefferies Financial Group has set an even higher target of $80.00.
Raymond James Financial adjusted its rating from “strong-buy” to “outperform” and raised its target from $62.00 to $66.00. Overall, one equities research analyst has rated the stock as a Strong Buy, while eighteen have issued Buy ratings and two have rated it as Hold. According to MarketBeat, the consensus rating for Citizens Financial Group stands at “Moderate Buy” with an average target price of $68.77.
Recent Performance and Dividend Announcement
The stock of Citizens Financial Group opened at $60.07 on the most recent trading day. With a market capitalization of $25.53 billion, the bank has a P/E ratio of 15.52 and a PEG ratio of 0.49. The company’s debt-to-equity ratio is 0.46, while the quick and current ratios stand at 0.84 and 0.85, respectively.
Over the past year, Citizens Financial Group has experienced a low of $32.60 and a high of $68.79. On January 21, 2024, the bank reported earnings of $1.13 per share for the quarter, surpassing analysts’ expectations of $1.11. The company’s revenue for the quarter reached $2.16 billion, in line with projections. This represents an 8.6% increase in revenue year-over-year, compared to $0.85 EPS during the same quarter last year. Analysts forecast that Citizens Financial Group will post $3.92 earnings per share for the current fiscal year.
The bank has also announced a quarterly dividend of $0.46 per share, paid on February 18, 2024, to investors of record as of February 4, 2024. This dividend represents an annualized amount of $1.84, yielding 3.1%, with a payout ratio of 47.55%.
Citizens Financial Group, Inc., headquartered in Providence, Rhode Island, provides a wide range of banking and financial services. The company operates primarily through its subsidiary, Citizens Bank, and serves customers via branches, ATMs, and digital platforms.
Investors and analysts remain optimistic about the bank’s future prospects as it adapts to changing market conditions and continues to grow its presence in the financial sector.
