Pundits Predicting Panic in Citizens Financial Group, Inc. (CFG)?

The exact reason why investors have been taking up Citizens Financial Group, Inc. (NYSE:CFG) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 12 February, the shares accumulated 0.57 points or 1.61 percent at $36.02 with a light trade volume of 4.705 million shares. After opening the session at $35.8, the shares went as high as $36.15 and as low as $35.72, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.9 billion and now has 469.44 million shares outstanding. Citizens Financial Group, Inc. (CFG) stock has gained 10.39 percent of market value in 21 trading days.

CFG stock has a trailing 3-year beta of 1.4, 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 21.16 percent year to date (YTD) against a decline of -16.33 percent in 12 month’s time. The company’s shares still trade -23.3 percent away from its 1-year high of $46.96 and 30.41 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.

Citizens Financial Group, Inc. (CFG) will probably climb 15.07 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 47.14 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 11.05 percent when compared to the closing price of the stock of $36.02 on Tuesday, February 12. The lowest price target for the stock is $36 — slightly more than -0.06 percent from CFG’s current share price.

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. Investors will get their next glimpse of CFG’s Q1 earnings on April 18. Analysts are forecasting revenue to climb 8.3 percent to $1.58B in the fiscal first quarter, while earnings are seen soaring by nearly 14.1 percent to $0.89 per share. It earned $0.96 per share, better than the $0.94, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.59B, worse than the $1.6B analysts expected. Earnings are estimated to increase by 31.9 percent this year, 8.16 percent next year and continue to increase by 16.96 percent annually for the next 5 years.

Let’s take a look at some insider activity at Citizens Financial Group, Inc. (NYSE:CFG) and see the pattern. 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 grew 1.98 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 -0.83 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 -13.18 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 -10.64 percent since the reporting date. Watson Wendy A. now left with a stake of 12.92 thousand CFG stock worth $465.27 thousand after the insider selling.

The stock is currently hovering around the first support level of $35.78. Below this, the next support is placed in the zone of $35.53. Till the time, the CFG stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 67.43 on daily chart, which may remain a cause for concern. If the price breaks below $35.53 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $36.21 mark may result into a pull-back move towards $36.39 level.

Shares of Citizens Financial Group, Inc. (CFG) are trading at a P/E ratio of 10.24 times earnings reported for the past 12 months. The industry CFG operates in has an average P/E of 19.55. Its P/E ratio went as low as 8.59X and as high as 18.11 over the 5-year span.Further, it is sporting a 2.94 on the Price-to-Sales ratio. Compare this with the industry average P/S of 8.11.