Kerrie D. MacPherson, a director at Community Financial System, Inc. (NYSE:CBU), recently acquired additional shares of the company’s common stock. The transaction, dated November 5, involved the purchase of 320 shares at an average price of $62.195 per share, totaling $19,902. Following this acquisition, MacPherson now holds 3,302 shares of Community Financial System. The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Community Bank System (NYSE:) has been in the spotlight due to several key developments. The bank’s shares were upgraded from Market Perform to Strong Buy by Raymond (NS:) James, reflecting a positive outlook for the company’s financial future. This was primarily attributed to an optimistic view of the bank’s earnings prospects, with an expected acceleration of revenue growth in 2025, driven by net interest margin expansion and fee income growth.
Community Bank System reported steady growth in its third-quarter earnings, with pre-provision net revenue rising to $1.29 per share, marking an 11.2% increase year-over-year. Earnings per share also slightly increased to $0.83, despite a modest decrease from the previous quarter. These earnings were influenced by an increased provision for credit losses and a rise in performance-based compensation expenses.
The bank’s three fee-based businesses—Employee Benefits, Insurance, and Wealth Management—were highlighted as contributors to the strong growth outlook. In addition, Community Bank System’s total operating revenues reached $189.1 million, a 7.8% increase year-over-year, indicating a strategic pursuit of growth opportunities.
In terms of expansion, the bank opened its first new branch in Syracuse, with 17 more locations in progress. Despite a rise in nonperforming loans to $62.8 million, the company’s asset quality remains strong. Looking ahead, Community Bank System’s executives project an improvement in net interest income in Q4 and a continued rise into 2025.
InvestingPro Insights
The recent insider purchase by Kerrie D. MacPherson aligns with several positive indicators for Community Bank System, Inc. (NYSE:CBU). According to InvestingPro data, the company’s stock has shown significant momentum, with a 34.63% price total return over the past six months and a 47.49% return over the last year. This performance has brought CBU’s stock price to 98.57% of its 52-week high, trading at $62.2 as of the last close.
InvestingPro Tips highlight that CBU has raised its dividend for 27 consecutive years, demonstrating a strong commitment to shareholder returns. This is particularly noteworthy given the company’s current dividend yield of 2.96%. Additionally, CBU has maintained dividend payments for an impressive 41 consecutive years, which may be attractive to income-focused investors.
The company’s financial health appears robust, with a market capitalization of $3.72 billion and revenue of $706.34 million over the last twelve months. CBU’s profitability is also noteworthy, with an operating income margin of 34.16% for the same period.
While the stock is trading at a P/E ratio of 22.67, which may seem high, it’s important to note that three analysts have revised their earnings upwards for the upcoming period. This could suggest potential for future growth and may justify the current valuation.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for CBU, which could provide further context for the company’s financial position and market performance.
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