JPMorgan Chase & Co. Lowers First Citizens BancShares Price Target to $2,300.00

On October 29, 2024, JPMorgan Chase & Co. announced a reduction in the price target for First Citizens BancShares (NASDAQ:FCNCA) from $2,550.00 to $2,300.00. This change was highlighted in a report released on Friday morning, and JPMorgan continues to hold an overweight rating on the bank's stock.

Other equity analysts have also shared their perspectives on First Citizens BancShares. Wedbush lowered their price target from $2,150.00 to $2,000.00 and assigned a "neutral" rating. Meanwhile, Jefferies Financial Group began coverage of the stock with a "buy" rating and a price target of $2,005.00 back on July 9. Additionally, Piper Sandler raised their price target from $1,950.00 to $2,150.00 while maintaining a "neutral" rating.

Barclays increased their target from $1,950.00 to $2,250.00, classifying the stock as "equal weight." On July 26, Keefe, Bruyette & Woods also adjusted their price target upward to $2,300.00 and rated the stock as "outperform." Currently, a total of five analysts have given the stock a "hold" rating, while six have rated it as a buy. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" with a price target of $2,025.90.

First Citizens BancShares Stock Movement

The shares of First Citizens BancShares saw an increase of 2.3% and opened at $1,926.03 on Friday. Over the past year, the stock has experienced a low of $1,339.10 and a high of $2,174.80. The bank boasts a market capitalization of $27.99 billion, a P/E ratio of 10.69, and a beta of 0.81. The debt-to-equity ratio stands at 1.72, with both the quick ratio and current ratio at 1.08. The averages for the company's 50-day and 200-day simple moving averages are $1,948.26 and $1,827.43, respectively.

Recently, First Citizens BancShares released their quarterly earnings report on October 24. The bank reported earnings per share of $45.87 but fell short of the analysts' consensus estimate of $47.40 by $1.53. The total revenue reported was $2.45 billion, exceeding the expected $2.36 billion. The bank had a net margin of 18.19% and a return on equity of 14.84%. In the same period last year, earnings per share were at $55.92. Analysts anticipate that the bank will achieve earnings per share of 198.72 for the current fiscal year.

Dividend and Stock Buyback Announcement

In addition to the earnings report, First Citizens BancShares announced a quarterly dividend on December 16, which will be payable to stockholders on record as of November 29. The dividend has been set at $1.95 per share, indicating an annualized dividend of $7.80 and a yield of 0.40%. This amount marks an increase from the previous dividend of $1.64. The ex-dividend date will also fall on November 29, with a payout ratio of 4.33%.

Furthermore, the board of First Citizens BancShares authorized a share repurchase plan on July 25, allowing the company to buy back up to $3.50 billion of its own shares. This plan is expected to enable the bank to repurchase about 12.3% of its total shares, usually interpreted as a sign of confidence from the board in the company's current undervaluation.

Institutional Investment Activity

A number of institutional investors have adjusted their stake in First Citizens BancShares. ORG Partners LLC acquired a new position worth $29,000 in the first quarter, while LRI Investments LLC added another new stake valued at $33,000. V Square Quantitative Management LLC followed suit with a new stake valued at $35,000 in the second quarter. Gradient Investments LLC increased their stake in the firm in the same quarter by acquiring a new position worth $52,000. Recently, GAMMA Investing LLC grew its stake by 129.6%, owning 62 shares valued at $114,000 after buying 35 additional shares. Overall, 61.18% of the stock is held by institutional investors and hedge funds.

Overview of First Citizens BancShares

First Citizens BancShares, Inc. functions as the holding company for First-Citizens Bank & Trust Company, providing a variety of retail and commercial banking services to individuals, businesses, and professionals. Their deposit offerings include checking accounts, savings accounts, money market accounts, and time deposit accounts.

JPMorgan, First, Citizens