Kevin Cummings, a director at Citizens Financial Group Inc . (NYSE:CFG), recently executed a notable stock transaction. On December 30, 2022, Cummings sold 4,254 shares of common stock at a price of $39.32 per share, amounting to a total sale of $167,267. This transaction was conducted through his 401K account, leaving him with no remaining shares in this particular holding.
Additionally, on November 13, 2024, Cummings acquired 124.295 shares of common stock, credited as restricted stock units related to the company's dividend payments. These units were granted under the Amended & Restated Citizens Financial Group, Inc. 2014 Non-Employee Directors Compensation Plan. Following these transactions, Cummings holds 466,008.877 shares directly and 57,916 shares indirectly through an IRA.
In other recent news, Citizens Financial Group reported a solid third-quarter performance with an underlying net income of $392 million and earnings per share at $0.79. Despite a 2.9% decrease in net interest income, the company expects a rebound in the fourth quarter. DA Davidson, RBC Capital, and Citi all provided positive outlooks on Citizens Financial Group. DA Davidson raised the price target to $48.00 and reaffirmed a Buy rating, despite a slight decrease in the company's net interest income. RBC Capital upgraded the stock target to $45, highlighting the company's strategic moves and strong capital position. Citi maintained a Buy rating, focusing on the company's robust capital position and expected increase in net interest income. In other recent developments, the company saw significant growth in its private banking sector, with deposits rising to $5.6 billion, up from $4 billion in the previous quarter. The company also returned $516 million to shareholders through share repurchases and dividends this quarter.
InvestingPro Insights
As we examine Kevin Cummings' recent transactions in Citizens Financial Group Inc. (NYSE:CFG), it's worth considering some key financial metrics and insights from InvestingPro that provide context to the company's current position.
Citizens Financial Group has demonstrated strong performance in the market, with InvestingPro data showing a remarkable 78.2% price total return over the past year. This robust growth is further emphasized by the stock trading near its 52-week high, at 96.69% of that peak. These figures align with an InvestingPro Tip highlighting the company's strong return over the last three months, suggesting a positive momentum that investors like Cummings may be considering in their trading decisions.
From a valuation perspective, CFG's P/E ratio stands at 18.25, with an adjusted P/E ratio of 17.68 for the last twelve months as of Q3 2024. This relatively moderate valuation is complemented by a price-to-book ratio of 0.9, indicating that the stock may be trading below its book value. Investors should note that CFG offers a dividend yield of 3.61%, with an InvestingPro Tip pointing out that the company has maintained dividend payments for 11 consecutive years, potentially appealing to income-focused shareholders.
While these metrics paint a generally positive picture, it's important to note that InvestingPro Tips also flag some challenges. The company suffers from weak gross profit margins, and 8 analysts have revised their earnings downwards for the upcoming period. These factors may influence insider trading decisions and should be considered alongside the positive indicators.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 9 more tips available for Citizens Financial Group. This deeper dive could provide valuable context for understanding insider transactions like those of Kevin Cummings.
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