First Citizens Bancshares Inc.’s stock skyrocketed Monday, fueled by the company’s agreement to assume all the deposits and loans of Silicon Valley Bridge Bank from the Federal Deposit Insurance Corp.
The stock climbed 53.5% Monday, hitting a 52-week high of $895.15, FactSet data show. The S&P 500 SPX,
Stocktwits, a social platform for investors and traders, highlights a frenzy of activity around First Citizens’ FCNCA,
“Participants on the platform remain extremely bearish as many anticipate the surge in price may drop soon,” Stocktwits told MarketWatch via email.
Related: First Citizens enters agreement to buy Silicon Valley Bridge Bank, says FDIC
In a statement released Sunday, the FDIC announced that the 17 former branches of Silicon Valley Bank will operate as First Citizens branches starting Monday. Silicon Valley Bridge Bank N.A. was created by the FDIC on March 13, following the closure of Silicon Valley Bank by the California Department of Financial Protection and Innovation.
“The message volume stats on Stocktwits will likely continue to pick up significantly in the days ahead if prices continue to rally, as it typically takes a few days for people to rotate back into discussing the names that are moving,” StockTwits told MarketWatch. “However, message volume on the platform is extremely high compared to a month prior.”
Silicon Valley Bank, formerly a unit of SVB Financial Group, based in Santa Clara, Calif., suffered a run on deposits earlier this month that forced the government to take the bank into receivership. Regulators stepped in to guarantee uninsured deposits.
Related: After Silicon Valley Bank collapse, startups describe ‘roller coaster of emotions’
People are still digesting the Silicon Valley Bank news, according to Stocktwits, but the initial reaction on the platform is that “it was a super positive purchase” for First Citizens Bancshares.
First Citizens Bancshares’ stock has risen 18% in 2023, outpacing the S&P 500’s gain of 4%.
Additional reporting by Steve Gelsi.