JPMorgan Chase & Co. Reduces Price Target for First Citizens BancShares to $2,300.00

On October 29, 2024, JPMorgan Chase & Co. announced a reduction in its price target for First Citizens BancShares (NASDAQ:FCNCA) from $2,550.00 to $2,300.00. This information was revealed in a report published on Friday morning, where JPMorgan maintained an overweight rating for the bank's stock.

Other financial analysts have also weighed in on First Citizens BancShares. Wedbush lowered its price target for the shares from $2,150.00 to $2,000.00 and assigned a neutral rating. Jefferies Financial Group initiated coverage on the company back on July 9, 2024, issuing a buy rating with a target price of $2,005.00. Meanwhile, Piper Sandler increased their price target from $1,950.00 to $2,150.00, also maintaining a neutral rating in late July. Barclays adjusted its target from $1,950.00 to $2,250.00 and gave an equal weight rating. Finally, Keefe, Bruyette & Woods set its target price at $2,300.00 while rating the stock as outperform. Collectively, five analysts have given the stock a hold rating and six have issued a buy rating. According to data from MarketBeat.com, the stock is currently ranked as a Moderate Buy with an average target price of $2,025.90.

Recent Stock Performance of First Citizens BancShares

On Friday, NASDAQ:FCNCA was opened at $1,926.03. The stock has experienced a one-year low of $1,339.10 and a high of $2,174.80. First Citizens BancShares holds a market capitalization of $27.99 billion, a P/E ratio of 10.69, and a beta of 0.81. Its current financial ratios include a debt-to-equity ratio of 1.72, a quick ratio of 1.08, and a current ratio of 1.08. The company's 50-day and 200-day simple moving averages are $1,948.26 and $1,827.43 respectively.

Recently, First Citizens BancShares released its quarterly earnings report on October 24, 2024, revealing earnings per share of $45.87 for the quarter. This fell short of analysts' expectations of $47.40 by $1.53. The company's revenue for this period was $2.45 billion, surpassing the anticipated $2.36 billion. The bank recorded a net margin of 18.19% and a return on equity of 14.84%. In the same quarter the previous year, they reported earnings per share of $55.92. Analysts predict that First Citizens BancShares will achieve an earnings per share of 198.72 for the current fiscal year.

Dividend Announcement

First Citizens BancShares has also announced an increase in its quarterly dividend, which is set to be paid on December 16, 2024. Stockholders of record on November 29, 2024, will receive $1.95 per share, which translates to an annualized dividend of $7.80 and a yield of 0.40%. This marks an increase from the previous dividend of $1.64. The ex-dividend date is also set for November 29, 2024, with a payout ratio of 4.33%.

Stock Buyback Program

In July 2024, First Citizens BancShares' board approved a stock repurchase plan, allowing the company to buy back up to $3.50 billion in its shares. This plan authorizes the bank to repurchase as much as 12.3% of its shares through open market purchases. Generally, such buyback initiatives suggest that a company's board believes the stock is undervalued.

Institutional Investors' Actions

Several institutional investors have made noticeable changes to their stakes in First Citizens BancShares recently. ORG Partners LLC and LRI Investments LLC acquired new stakes in the first quarter of 2024 valued at $29,000 and $33,000, respectively. V Square Quantitative Management LLC and Gradient Investments LLC also took new positions. Additionally, GAMMA Investing LLC increased its stake by 129.6% during the third quarter, now holding 62 shares valued at $114,000. Currently, 61.18% of the stock is controlled by hedge funds and other institutional investors.

Overview of First Citizens BancShares

First Citizens BancShares, Inc. operates as a holding company for First-Citizens Bank & Trust Company, which provides retail and commercial banking services targeting individuals, businesses, and professionals. The various products offered by the company include checking accounts, savings accounts, money market, and time deposit accounts.

Finance, Stocks, Banking