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With a market cap of $19.1 billion, Providence, Rhode Island-based Citizens Financial Group, Inc. (CFG) is one of the largest retail bank holding companies in the United States. The company provides a wide range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, and institutions.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Citizens Financial fits this criterion perfectly. Citizens Financial Group operates across the New England, Mid-Atlantic, and Midwest regions, serving a diverse range of customers through branches, telephone service centers, and online platforms.
Despite this, CFG declined 11.8% from its 52-week high of $49.25. Shares of this bank have gained 4.3% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 9.1% return over the same time frame.
However, in the longer term, CFG stock is up 31.1% on a YTD basis, slightly outperforming NASX’s 30.4% gains. Moreover, shares of CFG have gained 34.2% over the past 52 weeks, compared to NASX’s 32.4% returns over the same time frame.
CFG has been trading above its 200-day moving average since last year. Despite few fluctuations, the stock has also maintained its position above the 50-day moving average during the same period.
Shares of Citizens Financial fell 2.5% on Oct. 16 due to disappointing Q3 results and concerns about operational performance. While adjusted EPS of $0.79 matched estimates, revenues of $1.9 billion missed the consensus estimate, and net income declined 11.2% year-over-year to $382 million. Lower net interest income and shrinking net interest margin further weighed on investor sentiment. Additionally, declining loan and deposit balances and deteriorating credit quality, including higher net charge-offs and non-accrual loans, increased concerns about CFG’s operational outlook.
CFG has outperformed its rival Fifth Third Bancorp (FITB), which gained 26.2% over the past 52 weeks and 24.5% on a YTD basis.
Despite CFG’s outperformance relative to the broader market over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 20 analysts in coverage, and as of writing, CFG is trading below the mean price target of $51.18.
