People’s United (PBCT)
Market Capitalization: $4.5 billion
Total Return Since 3/9/2009: 7%
While a host of financial stocks have snapped back strongly from the bear market lows as the dust settled (and as bailouts propped them up), that hasn’t been the case for People’s United (PBCT).
The bank has been conspicuously absent from a rally for the broader financial sector in the last few years as the dark days of 2009 have been put farther and farther in the rear-view.
The problem isn’t just the meltdown of the mortgage market — or an ugly incident in 2008 that involved the loss of very sensitive data for millions of its clients.
The big issue for investors is that revenues and total assets have remained pressured, while accounting tricks like buybacks have propped up earnings per share.
While other banks have been able to get ahead thanks to consolidation and cost-cutting, or at the very least rebound thanks to a shift in sentiment, PBCT hasn’t been so lucky.