National Bank (NYSE:NBHC) Shares Gap Down Following Weak Earnings

Key Points

• National Bank Holdings shares gapped down after the company reported quarterly results that missed expectations, with EPS of $0.78 versus the $0.81 consensus and revenue of $129.06 million versus $135.08 million expected.
• The stock opened sharply lower at $43.58 from a prior close of $45.67 and was last trading around $43.56, reflecting the market’s negative reaction to the earnings miss.
• Despite the weak quarter, analysts still have a Moderate Buy consensus on NBHC, with an average price target of $46.20; the company also pays a quarterly dividend that annualizes to a 2.9% yield.

National Bank Holdings Corporation (NYSE:NBHC - Get Free Report) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $45.67, but opened at $43.58. National Bank shares last traded at $43.56, with a volume of 91,543 shares trading hands.

The financial services provider reported $0.78 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.81 by ($0.03). The company had revenue of $129.06 million during the quarter, compared to the consensus estimate of $135.08 million. National Bank had a return on equity of 8.72% and a net margin of 17.14%.During the same period in the previous year, the company earned $0.88 earnings per share.

National Bank Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date was Friday, May 29th. National Bank's dividend payout ratio (DPR) is presently 47.76%.

Analysts Set New Price Targets

Several brokerages recently weighed in on NBHC. Weiss Ratings raised National Bank from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, June 24th. Wall Street Zen raised National Bank from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. DA Davidson reissued a "buy" rating and set a $46.00 price objective on shares of National Bank in a research report on Wednesday, April 22nd. Finally, Piper Sandler boosted their target price on shares of National Bank from $48.00 to $52.00 and gave the company an "overweight" rating in a report on Monday, April 27th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $46.20.

Institutional Investors Weigh In On National Bank

Hedge funds have recently added to or reduced their stakes in the stock. Meeder Asset Management Inc. purchased a new position in National Bank in the 4th quarter worth approximately $48,000. Global Retirement Partners LLC purchased a new stake in National Bank in the fourth quarter worth approximately $66,000. Quarry LP grew its position in National Bank by 50.8% in the 3rd quarter. Quarry LP now owns 1,819 shares of the financial services provider's stock worth $70,000 after purchasing an additional 613 shares during the period. State of Wyoming purchased a new stake in National Bank during the 4th quarter valued at $69,000. Finally, Nisa Investment Advisors LLC lifted its holdings in shares of National Bank by 17.9% during the 4th quarter. Nisa Investment Advisors LLC now owns 3,283 shares of the financial services provider's stock valued at $125,000 after buying an additional 499 shares during the period. 92.65% of the stock is owned by institutional investors.

National Bank Trading Down 4.6%

The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $1.95 billion, a PE ratio of 16.25 and a beta of 0.78. The stock has a 50 day moving average price of $43.23 and a 200-day moving average price of $41.54.

About National Bank

National Bank Holdings Corporation NYSE: NBHC is a diversified financial services holding company headquartered in Cape Girardeau, Missouri. Through its network of community bank subsidiaries, the company provides deposit, lending and payment solutions to consumer, small business and commercial clients across multiple U.S. markets.

Since its founding in 1992, National Bank Holdings has pursued a growth strategy focused on acquiring and integrating locally branded community banks. Its footprint spans the Midwest and Southern United States, including Missouri, Kansas, Oklahoma, Texas, Colorado, Illinois and Tennessee.

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