Bank of N.T. Butterfield & Son (NYSE:NTB) Hits New 1-Year High on Better-Than-Expected Earnings

The Bank of N.T. Butterfield & Son Limited (NYSE:NTB)’s stock price reached a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $34.00 and last traded at $33.78, with a volume of 46233 shares. The stock had previously closed at $33.66.

The bank reported $1.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.21. The business had revenue of $142.80 million during the quarter, compared to analysts’ expectations of $137.28 million. Bank of N.T. Butterfield & Son had a return on equity of 23.18% and a net margin of 27.95%. The company’s revenue was down 2.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.24 EPS.

Bank of N.T. Butterfield & Son Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 21st. Stockholders of record on Tuesday, May 7th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Monday, May 6th. This represents a $1.76 annualized dividend and a dividend yield of 5.17%. Bank of N.T. Butterfield & Son’s dividend payout ratio is currently 39.55%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on NTB. The Goldman Sachs Group boosted their target price on Bank of N.T. Butterfield & Son from $31.00 to $35.00 and gave the company a “buy” rating in a research report on Thursday, January 11th. Keefe, Bruyette & Woods cut their price objective on Bank of N.T. Butterfield & Son from $41.00 to $40.00 and set an “outperform” rating on the stock in a report on Wednesday, February 14th. Raymond James restated an “outperform” rating and set a $36.00 target price (up from $32.00) on shares of Bank of N.T. Butterfield & Son in a report on Thursday. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $38.00 target price (up from $34.00) on shares of Bank of N.T. Butterfield & Son in a research report on Thursday. One analyst has rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, Bank of N.T. Butterfield & Son presently has a consensus rating of “Moderate Buy” and an average target price of $35.80.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Adage Capital Partners GP L.L.C. lifted its stake in Bank of N.T. Butterfield & Son by 11.5% in the third quarter. Adage Capital Partners GP L.L.C. now owns 1,766,718 shares of the bank’s stock worth $47,843,000 after acquiring an additional 182,265 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in Bank of N.T. Butterfield & Son by 1.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,453,670 shares of the bank’s stock valued at $46,534,000 after buying an additional 25,383 shares during the last quarter. Vanguard Group Inc. raised its stake in Bank of N.T. Butterfield & Son by 20.8% in the third quarter. Vanguard Group Inc. now owns 810,156 shares of the bank’s stock valued at $21,939,000 after buying an additional 139,485 shares in the last quarter. Invesco Ltd. lifted its holdings in Bank of N.T. Butterfield & Son by 0.4% during the 3rd quarter. Invesco Ltd. now owns 808,823 shares of the bank’s stock worth $21,903,000 after buying an additional 2,889 shares during the last quarter. Finally, Vaughan Nelson Investment Management L.P. lifted its holdings in Bank of N.T. Butterfield & Son by 66.7% during the 4th quarter. Vaughan Nelson Investment Management L.P. now owns 666,029 shares of the bank’s stock worth $21,320,000 after buying an additional 266,450 shares during the last quarter. 62.73% of the stock is currently owned by hedge funds and other institutional investors.

Bank of N.T. Butterfield & Son Trading Down 0.1 %

The firm has a market capitalization of $1.71 billion, a price-to-earnings ratio of 7.66 and a beta of 1.29. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.63 and a current ratio of 0.66. The company has a 50-day moving average price of $30.86 and a 200-day moving average price of $29.85.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and interest bearing and non-interest bearing deposits. The company's lending portfolio includes residential mortgage lending, automobile lending, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans, as well as overdraft facilities to commercial and corporate customers.