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NEW YORK (TheStreet) -- Citizens & Northern (CZNC) has been downgraded by TheStreet Ratings from Buy to Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CITIZENS & NORTHERN CORP (CZNC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for CITIZENS & NORTHERN CORP is currently very high, coming in at 90.72%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.30% is above that of the industry average.
- CZNC, with its decline in revenue, slightly underperformed the industry average of 4.7%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, CITIZENS & NORTHERN CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- CITIZENS & NORTHERN CORP's earnings per share declined by 10.5% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CITIZENS & NORTHERN CORP reported lower earnings of $1.50 versus $1.85 in the prior year. For the next year, the market is expecting a contraction of 9.3% in earnings ($1.36 versus $1.50).
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income has decreased by 9.0% when compared to the same quarter one year ago, dropping from $4.69 million to $4.27 million.
- You can view the full analysis from the report here: CZNC Ratings Report