On July 10, 2023, FJ Capital Management LLC (Trades, Portfolio), a renowned investment firm, added a substantial number of shares to its portfolio from Citizens Community Bancorp Inc (CZWI, Financial). This article aims to provide an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential implications of this acquisition.
Profile: FJ Capital Management LLC (Trades, Portfolio)
FJ Capital Management LLC (Trades, Portfolio), based in McLean, Virginia, is a well-established investment firm with a portfolio of 98 stocks, primarily in the Financial Services and Real Estate sectors. The firm's top holdings include First Bancshares Inc (FBMS, Financial), HomeTrust Bancshares Inc (HTBI, Financial), Old Second Bancorp Inc (OSBC, Financial), Southern Missouri Bancorp Inc (SMBC, Financial), and Midland States Bancorp Inc (MSBI, Financial). With an equity of $808 million, FJ Capital Management LLC (Trades, Portfolio) has a significant presence in the investment landscape.
Transaction Details
The transaction took place on July 10, 2023, with FJ Capital Management LLC (Trades, Portfolio) acquiring 1,057,549 shares of Citizens Community Bancorp Inc at a price of $8.95 per share. This acquisition represents a 1.17% position in the guru's portfolio and a 10.07% stake in the traded company. The transaction had an impact of 0.12% on the guru's portfolio.
Profile: Citizens Community Bancorp Inc
Citizens Community Bancorp Inc, a bank holding company based in the USA, offers traditional community banking services to businesses, agricultural operators, and consumers. The company's services include commercial real estate loans, commercial and industrial loans, agricultural real estate loans, agricultural operating loans, residential mortgages, home equity lines-of-credit, and consumer loans. As of the transaction date, the company's market capitalization stood at $94.254 million.
Stock Analysis
As of July 11, 2023, Citizens Community Bancorp Inc's stock (CZWI, Financial) was trading at $8.99, with a PE percentage of 5.65. The stock is significantly undervalued according to the GF Valuation, with a GF Value of $12.93 and a Price to GF Value ratio of 0.70. The stock has a GF Score of 72, indicating a likely average performance. The stock's F Score is 4, and it has a cash to debt ratio of 0.26.
Industry Overview
Citizens Community Bancorp Inc operates in the banking industry, which is currently facing various challenges and trends. The company has a ROE of 10.13 and a ROA of 0.93. Over the past three years, the company has seen a revenue growth of 8.10% and an earnings growth of 25.70%.
Stock Performance Indicators
The stock's RSI 5 Day, RSI 9 Day, and RSI 14 Day stand at 48.33, 53.61, and 53.00 respectively. The Momentum Index 6 - 1 Month and Momentum Index 12 - 1 Month are -27.27 and -31.78 respectively. These indicators suggest a potential for future performance.
Conclusion
In conclusion, FJ Capital Management LLC (Trades, Portfolio)'s acquisition of a significant stake in Citizens Community Bancorp Inc is a strategic move that could potentially enhance the guru's portfolio. The transaction also indicates the guru's confidence in the traded company's future performance. However, investors should conduct their own research and consider various factors before making investment decisions.
