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Citizens Financial Group, Inc. (CFG)

NYSE - NYSE Delayed Price. Currency in USD
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48.56-2.48 (-4.86%)
At close: 1:00PM EST
48.64 +0.08 (+0.16%)
Pre-Market: 05:11AM EST
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  • J
    JK
    10 YR Treasury yields peaked at 1.68% on Oct 21 and then declined about 25 bps to the 1.43 level. Based on strong job growth, lower unemployment claims, Fed tapering and inflation pressures rates have no where to go but up. CFG peaked around the same time the Treas yields peaked. Expect the share price will move with the yield trends and be back into the $50's by year end.
  • Y
    Yankee
    Hey Jabberwonky... You commented a few weeks back that last year was the time to pile into banks but not now because we all are afraid of inflation... Question: just curious - what should we be looking at now for this time next year? I'd be interested in your thoughts...
    Bullish
  • J
    Jabberwonky
    Looking rather nice, now if they can just increase the dividend a whee bit.
  • J
    JK
    Investors shareholders approved the deal. Should close in first half of 2022. CFG should see a great 2022.
  • J
    JK
    Crazy times. My forecast would be for the 10YR to hit 1.85% by year end and the 5 YR to hit 1.45%. These are the levels they were at 2 years ago before COVID. While COVID still remains a risk the existence and use of vaccines as well as medications to control the effects of COVID and reduce mortality rates will minimize the desire for more shut downs. People are getting used to wearing masks in airplanes, stores and other high density places and it will just become a way of life like it has been in Asia for many years. Treasury rates at these levels are still historically low so all the angst expressed in the media is wasted air. Higher rates = higher bank margins and as long as the economy grows or stays steady that means higher EPS and bank stock prices. Downside risk is that investors start to reduce equity exposures overall and bring bank stocks down with an overall correction. CFG $53 to $55 by year end IMO.

    Another ugly reality is nursing home mortality rates will probably continue to be higher than before due to the weak health conditions of the patients. More seniors will not be dying, but the length of time between entering a nursing home and passing away may be shorter. Just my opinion. Could mean insurers offering LTC insurance might have better results. Sorry for the morbid interpretation.
    Bullish
  • J
    JK
    Treasury yields are up again this morning. Market seems to be taking a different view of inflation than the Fed. Earnings reports from companies show employment cost pressures and revenue increases driven by price increases. Chipotle is a good example.

    What does this mean for CFG? Higher net interest margins over time as assets reprice and retail deposit pricing increases lag. Home equity loans, adjustable rate mortgages, and new loan originations priced to medium term treasuries will all be seeing increases in yields in 2022/23 while banks that are flush with deposits will not raise deposit rates until outflows require a response. That usually takes quite awhile and banks have been overfunded with deposits for awhile so they may lag even longer in this cycle.

    A 10 basis point increase in NIM% equals about $170 million in increased annual revenue with very little expense offset. About $42 million per quarter which would be a 6.5% increase in pre-tax, pre-provision income. This is before the impact of acquisitions.
    Bullish
  • Y
    Yankee
    Does anyone have any insight into CFG's dividend policy? It's been 8 quarters at $0.39 - the longest period without an increase since breaking away from RBS and initiating their own IOP... With inflation the effective dividend rate at about 3% no longer makes CFG a value-added standout financial or banking stock... Just curious what others are thinking...
    Bullish
  • J
    JK
    Let's see $50 !!!!!!!!!! With Treasury yields at 1.64% and the new acquisitions the value of deposit funding and growing non interest income is going to push CFG into the $60 to $70 range before long. Selling at barely 10X earnings and paying a great dividend yield.
    Bullish
  • J
    JK
    Analyst price targets for CFG being adjusted UP, UP and UP.

    Goldman $59
    Wedbush $58
    Bullish
  • J
    JK
    Are banks a good investment to hedge against inflation?

    Banks are inflation hedges because inflation usually produces margin expansion for banks. If the rate for an auto loan right now is 3%, and then a year from now, it's 4%, banks are going to be making more money off auto loans.

    The only time inflation hurts banks is when it causes prices to rise so fast it reduces demand and leads to a recession. With the pent up demand we see in today's economy I would doubt we see a recession in the next 12-18 months a rates rise. Not a guarantee but a good bet.
    Bullish
  • J
    JK
    CNBC talking heads telling investors BUY Banks, Insurance companies, financials in general who will all benefit from rising rates.
  • J
    JK
    5yr Treasury yield at the highest level since March 2020 when COVID hit. Up almost 100bps since the middle of 2020 and 70bps since the start of 2021.

    10Treasury yield at the highest level since April.

    Asset yields respond to interest rate increases faster than retail deposits so this can only mean good things for CFG net interest margins going forward.
    Bullish
  • Y
    Yankee
    Folks... What's the impact of adding about 73.5 million shares to already existing about 426 million?
  • J
    JK
    Yesterday was the highest one day increase in the 10 YR treasury in the last year. With inflation being the main topic of discussion in business news today and the bond market being closed tomorrow it would not be unreasonable to expect some significant volatility in rates tomorrow. Another jump like yesterday would put the 10 YR back to the high of Oct and should push bank stocks higher.
    Bullish
  • J
    JK
    Could be on track to break the all time high for CFG share price today.
    Bullish
  • Z
    Zach
    MACD on a buy signal and relative strength looks good, but not overbought. Great positioning of the stock right now
  • A
    Anonymous
    CFG is issuing 73,565,202 shares of stock.
  • J
    Jersey
    I have been unable to find the answer to this question on the web. Does Citizens Financial Group offer a DRIP?
  • S
    Sosadtoobad
    I’m new to this chat/board. I’m a long time holder of ISBC stock so I’ve started buying a small amount of CFG in anticipation of the acquisition next year. At first I was disappointed in the sale price but as I’ve been researching and following CFG I’m becoming more pleased and see the long term benefits of the purchase.

    Question: What is driving the current jump in the price of this stock?
  • H
    H
    If this dips to 43.00$ again, I will load the boat!
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