DekaBank Increases Investment in First Citizens BancShares by 1.2%

DekaBank Deutsche Girozentrale has increased its investment in shares of First Citizens BancShares, Inc. (NASDAQ: FCNCA) by 1.2% during the second quarter of 2023. The institutional investor now holds a total of 1,094 shares, following the acquisition of an additional 13 shares. As of the end of the most recent quarter, DekaBank’s holdings in First Citizens BancShares were valued at approximately $2.13 million.

This move is part of a broader trend, as several other institutional investors have also modified their positions in First Citizens BancShares. Notably, Cambridge Investment Research Advisors Inc. boosted its stake by 16.6% in the first quarter, acquiring an additional 27 shares to bring its total to 190 shares, valued at $352,000. Similarly, Asset Management One Co. Ltd. increased its holdings by 3.8%, now owning 3,802 shares worth $7.05 million after purchasing 139 additional shares.

In a more significant move, Sumitomo Mitsui Trust Group Inc. raised its investment by 12.9%, adding 7,046 shares to its portfolio, which now totals 61,877 shares valued at $114.73 million. KBC Group NV made a notable leap, increasing its holdings by 113.9%, now owning 10,753 shares worth $19.94 million after acquiring 5,725 shares.

As of now, hedge funds and other institutional investors collectively own 78.01% of First Citizens BancShares stock.

Stock Performance and Dividend Increase

Shares of First Citizens BancShares opened at $1,775.21 and experienced a 1.4% increase recently. The company holds a market capitalization of $22.94 billion and has a price-to-earnings ratio of 10.50. Its debt-to-equity ratio stands at 1.76, while both its current and quick ratios are at 1.04.

The firm has also announced a quarterly dividend of $2.10 per share, payable on December 15, 2023. This marks an increase from the previous quarterly dividend of $1.95. Shareholders of record on November 28, 2023 will be eligible for this dividend. The annualized dividend now amounts to $8.40 with a yield of 0.5%, and the dividend payout ratio currently sits at 4.61%.

Insider Activity and Analyst Ratings

In insider trading news, major shareholder Olivia Britton Holding purchased 409 shares of First Citizens BancShares on August 7, 2023, at an average price of $1,630.00 per share, totaling $666,670. This transaction increased her ownership by 30.18%, bringing her total to 1,764 shares valued at approximately $2.88 million. Similarly, insider Hope Holding Bryant made the same purchase on the same day, reflecting a parallel increase in ownership.

Over the past ninety days, insiders have acquired a total of 1,494 shares of company stock valued at $2.49 million. Insiders currently hold 13.40% of the company’s stock.

Several analysts have weighed in on First Citizens BancShares. Cowen reiterated a “buy” rating on July 28, 2023, while Citigroup maintained an “overweight” rating recently. On the other hand, Wall Street Zen downgraded the stock from “hold” to “sell” on September 28, 2023. Raymond James Financial set a target price of $2,100.00 on October 7, 2023, and Weiss Ratings reduced the company’s rating from “buy (b-)” to “hold (c+)” on October 8, 2023. Overall, eight analysts have rated the stock as a Buy, and five have assigned a Hold rating. According to MarketBeat, the consensus rating for First Citizens BancShares is “Moderate Buy,” with an average target price of $2,170.83.

As First Citizens BancShares continues to attract significant investment interest, the combination of strong institutional backing, a rising dividend, and positive analyst outlooks suggests a robust future for the bank.