“We view an investment in CCNE shares as a compelling purchase. We believe the move back to a build versus a buy model is likely to yield a higher return in invested capital than acquisitions. By sticking to a tried-and-true strategy with a history of positive execution we suspect growth will smooth out from recent lumpiness. The shares trade at a discount to peers on a P/E basis (12.8x vs. 13.8x), but a premium on tangible book (2.1x vs. 1.6x); we believe the split is caused by CNB’s relative capital position, but that P/E can expand as capital builds organically through an ROA in the 1.10%-1.20% range through the modeling period. Investors can achieve a 2.4% capitalized dividend yield at current share price levels while they wait for earnings acceleration. Our $29.50 target price is based on a blend of peer multiples and a discount acquisition analysis.”,” the firm’s analyst commented.
Several other research firms have also recently issued reports on CCNE. ValuEngine cut CNB Financial from a strong-buy rating to a buy rating in a report on Tuesday, November 14th. Zacks Investment Research cut CNB Financial from a buy rating to a sell rating in a report on Tuesday. Finally, BidaskClub cut CNB Financial from a sell rating to a strong sell rating in a report on Saturday, February 3rd.
Shares of CNB Financial (NASDAQ CCNE) opened at $27.50 on Thursday. CNB Financial has a fifty-two week low of $20.91 and a fifty-two week high of $29.76. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 1.11. The stock has a market capitalization of $432.60, a price-to-earnings ratio of 16.01 and a beta of 0.83.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Thursday, March 1st will be issued a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a dividend yield of 2.40%. The ex-dividend date is Wednesday, February 28th. CNB Financial’s dividend payout ratio (DPR) is 42.04%.
In other CNB Financial news, Director Francis X. Straub III acquired 1,000 shares of the firm’s stock in a transaction dated Wednesday, February 7th. The shares were acquired at an average price of $26.91 per share, for a total transaction of $26,910.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 4.40% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the stock. Prudential Financial Inc. boosted its holdings in CNB Financial by 13.1% in the third quarter. Prudential Financial Inc. now owns 45,400 shares of the bank’s stock valued at $1,240,000 after acquiring an additional 5,260 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in CNB Financial by 11.3% in the second quarter. Dimensional Fund Advisors LP now owns 380,396 shares of the bank’s stock valued at $9,118,000 after acquiring an additional 38,699 shares during the last quarter. Vanguard Group Inc. boosted its holdings in CNB Financial by 8.6% in the second quarter. Vanguard Group Inc. now owns 532,453 shares of the bank’s stock valued at $12,763,000 after acquiring an additional 42,057 shares during the last quarter. State Street Corp raised its position in CNB Financial by 3.4% in the second quarter. State Street Corp now owns 253,997 shares of the bank’s stock valued at $6,089,000 after purchasing an additional 8,363 shares during the period. Finally, Northern Trust Corp raised its position in CNB Financial by 8.7% in the second quarter. Northern Trust Corp now owns 182,037 shares of the bank’s stock valued at $4,363,000 after purchasing an additional 14,607 shares during the period. Hedge funds and other institutional investors own 41.85% of the company’s stock.
About CNB Financial
CNB Financial Corporation is a financial holding company. The Company is the holding company of CNB Bank (the Bank); CNB Securities Corporation, which maintains investments in debt and equity securities; CNB Insurance Agency, which provides for the sale of nonproprietary annuities and other insurance products, and Holiday Financial Services Corporation, which offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment.
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