Community Bank System
Shares of Community Bank System (CBU) of DeWitt, N.Y., closed at $26.68 Tuesday, down 3% year-to-date, following a 4% return during 2011. The five-year total return was 57%, according to Thomson Reuters Bank Insight.
Based on a 26-cent quarterly payout, the shares have a dividend yield of 2.84%.The company has a deal in place to purchase 19 branches as part of First Niagara Financial Group's (FNFG) plan to divest roughly 100 branches following its purchase of 200 branches from HSBC (HBC), in a deal that was completed last Friday. The branch purchase will include roughly $218 million in loans and $955 million in deposits. Community Bank System raised $57.5 million in common equity in January, to support the branch acquisitions. The company had $6.9 billion in total assets as of March 31. CBU's operating return on average assets (ROA) has ranged between 1.14% and 1.24% over the past five quarters, according to Thomson Reuters Bank Insight. The shares trade for 2.2 times tangible book value, according to Thomson Reuters Bank insight, and for 12 times the consensus 2013 EPS estimate of $2.15. The consensus 2012 EPS estimate is $2.04. Guggenheim Securities analyst David Darst has a neutral rating on Community Bank System, with a $29 price target, saying in late April after the company reported its first-quarter results that the share were trading "in line with the historical earnings multiple," and that "a premium valuation versus peers is warranted given the company's clean asset quality, favorable market demographics with growth opportunities, and our expectations for CBU to generate ~19% [return on tangible equity] in 2012." Darst estimates that First Niagara will earn $2.04 a share this year, followed by earnings of $2.14 a share during 2013. Interested in more on Community Bank System? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV