Insider Buying: Northpointe Bancshares (NYSE:NPB) CEO Purchases 50,000 Shares of Company Stock

Key Points

• CEO Charles Williams purchased 50,000 Northpointe Bancshares shares at an average price of $15.42, investing $771,000 and increasing his direct ownership to 2,525,962 shares. He also bought another 50,000 shares days later, bringing his recent purchases to approximately $1.54 million.
• Northpointe shares rose 3.2% to $15.72, while the company announced a $30 million stock-repurchase program and increased its quarterly dividend to $0.03 per share.
• Fundamental risks remain: Northpointe reported quarterly EPS of $0.39, below the $0.60 consensus estimate. Analysts maintain an overall “Hold” rating, with a consensus price target of $20.25.

Northpointe Bancshares, Inc. (NYSE:NPB - Get Free Report) CEO Charles Williams purchased 50,000 shares of the business's stock in a transaction on Friday, October 23rd. The stock was acquired at an average price of $15.42 per share, with a total value of $771,000.00. Following the completion of the acquisition, the chief executive officer directly owned 2,525,962 shares in the company, valued at $38,950,334.04. The trade was a 2.02% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website.

Charles Alan Williams also recently made the following trade(s):

• On Monday, October 26th, Charles Williams purchased 50,000 shares of Northpointe Bancshares stock. The shares were acquired at an average cost of $15.32 per share, for a total transaction of $766,000.00.
• On Wednesday, August 26th, Charles Williams acquired 48,312 shares of Northpointe Bancshares stock. The shares were acquired at an average price of $16.95 per share, for a total transaction of $818,888.40.
• On Tuesday, August 25th, Charles Williams acquired 30,000 shares of Northpointe Bancshares stock. The shares were acquired at an average price of $16.95 per share, for a total transaction of $508,500.00.

Northpointe Bancshares Trading Up 3.2%

Shares of NYSE:NPB traded up $0.49 during midday trading on Tuesday, reaching $15.72. The company's stock had a trading volume of 372,532 shares, compared to its average volume of 242,782. The firm has a market cap of $543.60 million, a price-to-earnings ratio of 7.38 and a beta of 0.16. The company has a quick ratio of 1.34, a current ratio of 1.40 and a debt-to-equity ratio of 2.66. Northpointe Bancshares, Inc. has a 1 year low of $13.80 and a 1 year high of $19.71. The business has a 50 day moving average price of $16.26 and a 200 day moving average price of $17.39.

Northpointe Bancshares (NYSE:NPB - Get Free Report) last released its earnings results on Tuesday, October 20th. The company reported $0.39 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.21). Northpointe Bancshares had a net margin of 16.27% and a return on equity of 13.88%. The business had revenue of $55.92 million during the quarter. Research analysts forecast that Northpointe Bancshares, Inc. will post 1.80 EPS for the current year.

Northpointe Bancshares Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 4th. Stockholders of record on Thursday, October 15th will be paid a dividend of $0.03 per share. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.8%. This is an increase from Northpointe Bancshares's previous quarterly dividend of $0.0250. Northpointe Bancshares's dividend payout ratio is currently 5.63%.

Key Northpointe Bancshares News

Here are the key news stories impacting Northpointe Bancshares this week:

• Positive Sentiment: $30 million stock buyback: Northpointe Bancshares announced a $30 million common-stock repurchase program. Buybacks can support the share price, reduce shares outstanding, and potentially improve future earnings per share. MarketScreener article
• Positive Sentiment: CEO buying signals confidence: CEO Charles Williams purchased 100,000 shares across October 23 and October 26 for approximately $1.54 million. The purchases increased his direct ownership to 2,575,962 shares, aligning management financially with shareholders. InsiderTrades CEO profile
• Positive Sentiment: Additional insider purchases: Director Carrie L. Boer bought 12,000 shares for $184,800, while COO Joseph B. Long purchased 3,240 shares for approximately $49,800. Multiple insiders buying shares at prices near $15.40 may reinforce the perception that NPB is undervalued. SEC director filing
• Negative Sentiment: Fundamental caution remains: Northpointe’s latest reported quarterly earnings missed consensus expectations, so investors may view the buyback and insider buying as support for the valuation while continuing to monitor earnings recovery and credit conditions.

Hedge Funds Weigh In On Northpointe Bancshares

Several hedge funds and other institutional investors have recently made changes to their positions in NPB. Bank of America Corp DE increased its holdings in Northpointe Bancshares by 126.9% in the 1st quarter. Bank of America Corp DE now owns 215,544 shares of the company's stock valued at $3,720,000 after purchasing an additional 120,554 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Northpointe Bancshares in the second quarter worth about $1,756,000. Mendon Capital Advisors Corp boosted its position in shares of Northpointe Bancshares by 86.4% in the first quarter. Mendon Capital Advisors Corp now owns 308,624 shares of the company's stock worth $5,327,000 after buying an additional 143,010 shares during the period. Rockefeller Capital Management L.P. purchased a new stake in shares of Northpointe Bancshares in the fourth quarter worth about $965,000. Finally, Segall Bryant & Hamill LLC acquired a new stake in shares of Northpointe Bancshares in the first quarter valued at about $1,515,000.

Wall Street Analysts Forecast Growth

NPB has been the subject of a number of recent analyst reports. Weiss Ratings upgraded shares of Northpointe Bancshares from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, September 9th. Keefe, Bruyette & Woods dropped their price target on shares of Northpointe Bancshares from $22.00 to $21.00 and set an "outperform" rating for the company in a research report on Thursday, July 23rd. Zacks Research raised shares of Northpointe Bancshares from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. Finally, Piper Sandler decreased their price target on shares of Northpointe Bancshares from $20.00 to $19.50 and set an "overweight" rating on the stock in a report on Thursday, October 22nd. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $20.25.

Northpointe Bancshares Company Profile

Northpointe Bancshares, Inc is a bank holding company headquartered in Grand Rapids, Michigan. It operates through Northpointe Bank, a financial institution focused on providing banking products and lending services to individuals, families, and businesses.

Northpointe Bank offers residential mortgage loans, including home purchase and refinancing products, as well as consumer deposit accounts such as checking, savings, and certificates of deposit. The bank also provides commercial banking services and business loans, serving customers through a combination of digital banking capabilities and banking offices.

Founded in 1999, Northpointe Bank serves customers across the United States, with a particular emphasis on mortgage lending and relationship-based banking.

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