First Citizens BancShares (NASDAQ:FCNCA) Board of Directors Approves Stock Repurchase Program

First Citizens BancShares (NASDAQ:FCNCA) declared that its Board of Directors has initiated a stock buyback program on Friday, October 23rd, RTT News reports. The company plans to repurchase $1.20 billion in shares. This buyback authorization authorizes the bank to reacquire up to 4.5% of its stock through open market purchases. Share buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Piper Sandler lifted their target price on First Citizens BancShares from $2,050.00 to $2,100.00 and gave the stock a “neutral” rating in a report on Monday, July 27th. Weiss Ratings upgraded First Citizens BancShares from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, October 16th. The Goldman Sachs Group increased their price target on First Citizens BancShares from $2,100.00 to $2,340.00 and gave the company a “neutral” rating in a research note on Tuesday, July 7th. UBS Group restated a “neutral” rating and set a $2,475.00 price objective on shares of First Citizens BancShares in a research report on Monday. Finally, Barclays raised their price objective on First Citizens BancShares from $2,376.00 to $2,650.00 and gave the stock an “equal weight” rating in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $2,344.00.

First Citizens BancShares Trading Down 1.3%

Shares of NASDAQ FCNCA traded down $30.23 during midday trading on Monday, reaching $2,345.61. The stock had a trading volume of 142,936 shares, compared to its average volume of 75,857. The company’s 50 day moving average price is $2,137.33 and its 200 day moving average price is $2,061.06. The company has a debt-to-equity ratio of 1.59, a quick ratio of 1.00 and a current ratio of 1.00. First Citizens BancShares has a twelve month low of $1,735.03 and a twelve month high of $2,429.96. The firm has a market cap of $26.48 billion, a price-to-earnings ratio of 12.02, a price-to-earnings-growth ratio of 1.76 and a beta of 0.58.

First Citizens BancShares (NASDAQ:FCNCA) last posted its quarterly earnings data on Friday, October 23rd. The bank reported $55.37 earnings per share for the quarter, topping the consensus estimate of $46.18 by $9.19. First Citizens BancShares had a net margin of 16.54% and a return on equity of 12.49%. The company had revenue of $2.27 billion during the quarter, compared to analysts’ expectations of $2.23 billion. As a group, sell-side analysts expect that First Citizens BancShares will post 193.20 EPS for the current year.

First Citizens BancShares Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 30th will be given a dividend of $2.25 per share. This represents a $9.00 dividend on an annualized basis and a yield of 0.4%. This is an increase from First Citizens BancShares’s previous quarterly dividend of $2.10. The ex-dividend date of this dividend is Monday, November 30th. First Citizens BancShares’s payout ratio is currently 4.49%.

Insiders Place Their Bets

In other news, major shareholder Olivia Britton Holding sold 7,000 shares of First Citizens BancShares stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $19.53, for a total value of $136,710.00. Following the completion of the transaction, the insider directly owned 15,000 shares of the company’s stock, valued at approximately $292,950. This trade represents a 31.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Diane E. Morais acquired 50 shares of the stock in a transaction dated Wednesday, August 19th. The stock was acquired at an average cost of $2,168.11 per share, with a total value of $108,405.50. Following the completion of the transaction, the director owned 100 shares in the company, valued at approximately $216,811. This represents a 100.00% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 14.63% of the company’s stock.

About First Citizens BancShares

First Citizens BancShares, Inc is a bank holding company headquartered in Raleigh, North Carolina. Its principal subsidiary, First-Citizens Bank & Trust Company, provides banking and financial services to individuals, businesses, and institutions through a network of branches and digital banking channels.

The bank offers deposit accounts, consumer and residential lending, commercial and industrial loans, commercial real estate financing, equipment finance, treasury management, and payment services.