Citizens Financial Group, Inc. (CFG) Stock Too Hot to Handle

Analysts at Citigroup upped their rating on shares of Citizens Financial Group, Inc. (NYSE:CFG) from Neutral to Buy in their opinion released on January 09. RBC Capital Mkts analysts bumped their recommendation on CFG stock from Sector Perform to Outperform in a separate flash note to investors on January 02. Analysts at Barclays are sticking to their Equal Weight recommendation. However, on January 02, they lifted target price for these shares to $41 from $51. Analysts at Barclays, made their first call for the stock with a Equal Weight rating, according to a research note that dated back to January 02.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Citizens Financial Group, Inc. (NYSE:CFG)’s prospects. The earliest insider trade took place on 11/21/2018. Subramaniam Shivan S. gathered a total of 3 thousand shares of company at average share price of $35.32. The total for the purchase was set at $105.96 thousand. After this transaction, the Director account balance stood at 38.96 thousand shares. The stock lost -2.66 percent since that insider purchase. On 10/23/2018, Koch Charles John, Director, purchased 14 thousand shares at a price per share of $36.32. This added 508.48 thousand shares to the insider’s fortune and the stock saw a -5.34 percent retreat in value since the news became public. This transaction left 49.94 thousand shares in the Director account. On 06/05/2018, Controller Black Randall J performed a sale transaction worth $32.86 thousand. This sale at $41.49 each has eliminated 0.79 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -17.14 percent decrease since the transaction was reported. The insider now is left with 34.26 thousand shares remaining in the account. Watson Wendy A., who performs the Director job, sold 4 thousand shares for $161.24 thousand. The disposal occurred on 12/01/2017 was priced at $40.31 per share. The share price plunged -14.71 percent since the reporting date. Watson Wendy A. now left with a stake of 12.92 thousand CFG stock worth $445.89 thousand after the insider selling.

Citizens Financial Group, Inc. (CFG) is expected to jump by 21.23 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $53 price as 12-month high target. This represents a whopping 53.53 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $40, which represents a return potential of 15.87 percent when compared to the closing price of the stock of $34.52 on Wednesday, February 06. The lowest price target for the stock is $36 — slightly more than 4.29 percent from CFG’s current share price.

The shares are currently floating around the first support level of $34.29. Below this, the next support is placed in the zone of $34.06. Till the time, the CFG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 55.98 on daily chart, which may remain a cause for concern. If the price breaks below $34.06 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $34.71 mark may result into a pull-back move towards $34.89 level.

CFG shares accumulated 0.14 points or 0.41 percent on Wednesday to $34.52 with a light trade volume of 3.455 million shares. After opening the session at $34.25, the shares went as high as $34.665 and as low as $34.25, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.4 billion and now has 475.96 million shares outstanding. Citizens Financial Group, Inc. (CFG) stock has gained 7.84 percent of market value in 21 trading days.

CFG stock has a trailing 3-year beta of 1.46, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.46 a share in the trailing twelve months. The stock’s value has surged 16.11 percent year to date (YTD) against a decline of -20.97 percent in 12 month’s time. The company’s shares still trade -26.49 percent away from its 1-year high of $46.96 and 24.98 percent up from 52-week low of $27.62. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Citizens Financial Group, Inc. (CFG) are trading at a P/E ratio of 11.11 times earnings reported for the past 12 months. The industry CFG operates in has an average P/E of 18.6. Its P/E ratio went as low as 16.03X and as high as 18.11 over the 5-year span. Further, it is sporting a 2.85 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.82. 0 percent is the gross profit margin for Citizens Financial Group, Inc. and operating margin sits at 70.1 percent. Along with this, the net profit margin is 31.5 percent.

CFG will be showing off its Q1 earnings on April 18. Analysts are forecasting revenue to climb 8.3 percent to $1.58B in the next fiscal quarter, while earnings are seen soaring by nearly 14.1 percent to $0.89 per share. History has shown that shares in Citizens Financial Group, Inc. have gone up on 12 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.96 per share, better than the $0.94, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.56B, in line with the $1.56B analysts expected. Earnings are estimated to increase by 31.9 percent this year, 8.1 percent next year and continue to increase by 16.96 percent annually for the next 5 years.