First Citizens BancShares (NASDAQ:FCNCA) Shares Gap Down Following Weak Earnings

First Citizens BancShares, Inc. (NASDAQ:FCNCA) shares gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2,082.60, but opened at $1,950.00. First Citizens BancShares shares last traded at $1,829.29, with a volume of 31,728 shares.

The bank reported $45.87 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $47.40 by ($1.53). The firm had revenue of $2.45 billion during the quarter, compared to the consensus estimate of $2.36 billion. First Citizens BancShares had a return on equity of 14.84% and a net margin of 18.19%. During the same quarter in the previous year, the firm earned $55.92 EPS.

First Citizens BancShares Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Friday, November 29th will be given a dividend of $1.95 per share. The ex-dividend date is Friday, November 29th. This represents a $7.80 annualized dividend and a dividend yield of 0.41%. This is an increase from First Citizens BancShares’s previous quarterly dividend of $1.64. First Citizens BancShares’s dividend payout ratio (DPR) is 3.64%.

First Citizens BancShares declared that its board has initiated a stock repurchase plan on Thursday, July 25th that allows the company to repurchase $3.50 billion in outstanding shares. This repurchase authorization allows the bank to repurchase up to 12.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Wedbush reduced their target price on First Citizens BancShares from $2,150.00 to $2,000.00 and set a “neutral” rating for the company in a report on Friday. JPMorgan Chase & Co. reduced their price objective on First Citizens BancShares from $2,550.00 to $2,300.00 and set an “overweight” rating for the company in a report on Friday. Barclays upped their target price on shares of First Citizens BancShares from $1,950.00 to $2,250.00 and gave the company an “equal weight” rating in a research note on Monday, July 29th. StockNews.com cut shares of First Citizens BancShares from a “hold” rating to a “sell” rating in a report on Monday, October 7th. Finally, Piper Sandler increased their price objective on shares of First Citizens BancShares from $1,950.00 to $2,150.00 and gave the company a “neutral” rating in a research report on Friday, July 26th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, First Citizens BancShares currently has a consensus rating of “Hold” and an average price target of $2,025.90.

Institutional Investors Weigh In On First Citizens BancShares

Several hedge funds and other institutional investors have recently modified their holdings of FCNCA. Capital Research Global Investors bought a new stake in First Citizens BancShares during the 1st quarter worth approximately $298,180,000. Vanguard Group Inc. raised its position in shares of First Citizens BancShares by 4.6% during the 1st quarter. Vanguard Group Inc. now owns 1,064,822 shares of the bank’s stock valued at $1,740,984,000 after purchasing an additional 47,167 shares during the period. Toronto Dominion Bank lifted its stake in shares of First Citizens BancShares by 3,577.5% during the 2nd quarter. Toronto Dominion Bank now owns 35,010 shares of the bank’s stock valued at $58,943,000 after buying an additional 34,058 shares in the last quarter. Zurich Insurance Group Ltd FI boosted its holdings in First Citizens BancShares by 225.2% in the 2nd quarter. Zurich Insurance Group Ltd FI now owns 42,159 shares of the bank’s stock worth $70,979,000 after buying an additional 29,194 shares during the period. Finally, Westfield Capital Management Co. LP increased its stake in First Citizens BancShares by 770.1% in the 1st quarter. Westfield Capital Management Co. LP now owns 27,713 shares of the bank’s stock worth $45,312,000 after buying an additional 24,528 shares in the last quarter. 61.18% of the stock is currently owned by hedge funds and other institutional investors.

First Citizens BancShares Trading Up 0.1 %

The stock has a fifty day simple moving average of $1,948.26 and a 200 day simple moving average of $1,824.36. The firm has a market capitalization of $27.34 billion, a P/E ratio of 10.45 and a beta of 0.81. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 1.72.

About First Citizens BancShares

First Citizens BancShares, Inc operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts.