Is First Citizens BancShares (FCNCA) an Undervalued Opportunity?

Is First Citizens BancShares (FCNCA) an Undervalued Opportunity?

Tue, September 15, 2026 at 6:13 PM GMT+3 3 min read

• FCNCA +0.09%

Broyhill Asset Management, a Charlotte-based firm, issued its second-quarter 2026 investor letter, which is available for download here. The Broyhill Equity Composite gained 8.8% in Q2, trailing the MSCI All Country World Index's 15.1% and the MSCI ACWI Value Index's 10.8%. For the first half, the Composite returned 2.3%, versus 11.5% for the Index. The letter highlights that a significant portion of the shortfall occurred in April due to market dynamics and geopolitical events, with tech, particularly semiconductors, driving recent gains. Broyhill notes its lack of direct semiconductor exposure but acknowledges potential interest in the sector if opportunities arise, maintaining its investment philosophy focused on capital protection in fragile market conditions. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Broyhill Asset Management highlighted First Citizens BancShares, Inc. (NASDAQ:FCNCA). First Citizens BancShares, Inc. (NASDAQ:FCNCA) operates as the holding company for First-Citizens Bank & Trust Company, providing retail and commercial banking services. On September 14, 2026, First Citizens BancShares, Inc. (NASDAQ:FCNCA) closed at $2,173.88 per share. Over the past month, First Citizens BancShares, Inc. (NASDAQ:FCNCA) declined 1.03%, but its shares are up 17.10% over the past year. First Citizens BancShares, Inc. (NASDAQ:FCNCA) has a market capitalization of $24.55 billion, and its stock has traded within a 52-week range of $1,623.76 to $2,296.30.

Broyhill Asset Management stated the following regarding First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q2 2026 investor letter:

"First Citizens BancShares, Inc. (NASDAQ:FCNCA), initiated in June, is a well-run company which we believe to be undervalued and with catalysts on the horizon. The company has retired almost 20% of its Class A shares since July 2024, and inside its roughly $25 billion market capitalization sits a rail leasing fleet of approximately 128,000 cars valued by the market at bank multiples. Management has proven themselves highly competent and highly aligned with shareholders, with the Holding family in key executive positions, owning over 20% of the economics and controlling roughly half the vote through their Class B shares. Much of what we are waiting on has a date attached to it: two separations have completed, and Masco and First Citizens are retiring shares at a pace that improves per-share value whether or not the multiples change."

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge fund portfolios held First Citizens BancShares, Inc. (NASDAQ:FCNCA) at the end of the second quarter, compared to 35 in the previous quarter. While we acknowledge the potential of First Citizens BancShares, Inc. (NASDAQ:FCNCA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered First Citizens BancShares, Inc. (NASDAQ:FCNCA) and highlighted the list of companies that exceeded Wall Street's earnings expectations. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.