National Pension Service Reduces Stock Position in First Citizens BancShares, Inc. (NASDAQ:FCNCA)

In a recent filing with the Securities and Exchange Commission, the National Pension Service announced a reduction in its stake in First Citizens BancShares, Inc. (NASDAQ:FCNCA). The service decreased its stock holdings by 12.0% during the third quarter, bringing its total ownership to 19,140 shares after selling 2,611 shares in that period. This means that the National Pension Service now holds 0.13% of the company, which is valued at approximately $35.2 million.

Additionally, other institutional investors have adjusted their positions in First Citizens BancShares recently. Emerald Advisers LLC bought a new stake worth $677,000 in the third quarter. Harbor Capital Advisors Inc. significantly increased its stake by 93.9%, owning 4,585 shares valued at about $8.44 million after acquiring an additional 2,220 shares. Janney Montgomery Scott LLC raised its holdings by 6.9%, adding 244 shares to its existing collection, totaling 3,760 shares valued at around $6.92 million. Furthermore, Emerald Mutual Fund Advisers Trust grew its position by 5.1%, now holding 986 shares worth approximately $1.82 million after buying an additional 48 shares. Lastly, US Bancorp DE increased its stake by 17.0%, now owning 654 shares valued at around $1.20 million. Overall, institutional investors collectively own about 61.18% of First Citizens BancShares stock.

First Citizens BancShares Stock Performance

The stock opened at $2,272.62 on the last trading day and has experienced a year range with a low of $1,363.97 and a high of $2,275.90. The company holds a market capitalization of $32.88 billion, a PE ratio of 13.02, and a beta of 0.80. Its 50-day moving average price is $1,946.57, while the 200-day moving average price is $1,848.89. Financial ratios reflect a debt-to-equity ratio of 1.72 and both a quick and current ratio of 1.08.

Recently, First Citizens BancShares reported its quarterly earnings on October 24th, revealing an earnings per share (EPS) of $45.87, which fell short of analysts' expectations of $47.40. The bank's revenue for the quarter was reported at $2.45 billion, exceeding analyst estimates of $2.36 billion. The bank achieved a net margin of 17.36% and a return on equity of 13.78%, despite the decrease in EPS compared to $55.92 earned in the same period last year. Analysts are forecasting an EPS of 189.06 for the current year.

Stock Buyback Program

On July 25th, the board of First Citizens BancShares approved a stock buyback program allowing the company to repurchase up to $3.5 billion in shares. This initiative to buy back 12.3% of its stock is often seen as an indication that the company believes its shares are currently undervalued.

Increased Dividend Declaration

In addition, the company recently announced an increase in its quarterly dividend, which will be paid on December 16th. Shareholders on record by November 29th will receive a dividend of $1.95, translating to an annualized dividend of $7.80 with a yield of 0.34%. This is an increase from the previous quarterly dividend of $1.64. The ex-dividend date is also set for November 29th, with a payout ratio of 4.47%.

Analyst Ratings

Several analysts have recently updated their ratings for FCNCA shares. Wedbush lowered its target price for the stock from $2,150.00 to $2,000.00, giving it a “neutral” rating. StockNews.com changed its stance from “hold” to “sell.” Meanwhile, Piper Sandler adjusted its target from $1,950.00 to $2,150.00, while Keefe, Bruyette & Woods raised their price objective from $2,100.00 to $2,300.00. JPMorgan Chase & Co. also decreased its target from $2,550.00 to $2,300.00. Currently, one analyst rates the stock as a sell, four as hold, and six as buy, with an average rating of “Hold” and a price target around $2,025.90.

Overall, First Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company, providing retail and commercial banking services to individual clients, businesses, and professionals. Its deposit offerings include various account types such as checking, savings, money market, and time deposit accounts.

Pension, Stocks, Dividend