NB Bancorp (NASDAQ:NBBK) Shares Gap Down on Disappointing Earnings

Key Points

• Shares gapped down about 10.5% after NB Bancorp missed expectations — Q results showed EPS $0.38 vs. $0.52 expected and revenue $69.38M vs. $70.83M, opening at $18.53 from a $21.45 close.
• The company declared a quarterly dividend of $0.07 per share (annualized $0.28, ~1.5% yield); the ex-dividend date is May 6 and the payment date is May 20.
• CEO Joseph Campanelli bought 2,500 shares at $20.16 and insiders have acquired 8,500 shares over 90 days, while analysts carry a Moderate Buy consensus with a $24 price target.

NB Bancorp, Inc. (NASDAQ:NBBK - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $21.45, but opened at $18.53. NB Bancorp shares last traded at $19.0640, with a volume of 149,678 shares trading hands.

The company reported $0.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.14). NB Bancorp had a net margin of 14.30% and a return on equity of 8.58%. The firm had revenue of $69.38 million for the quarter, compared to analyst estimates of $70.83 million.

NB Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Wednesday, May 6th will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Wednesday, May 6th. NB Bancorp's payout ratio is presently 20.90%.

Wall Street Analyst Weigh In

NBBK has been the topic of a number of research reports. Weiss Ratings reiterated a "hold (c)" rating on shares of NB Bancorp in a report on Thursday, April 2nd. Zacks Research downgraded shares of NB Bancorp from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 19th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $24.00 price objective on shares of NB Bancorp in a research note on Monday, March 16th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $24.00.

Insider Activity

In other news, CEO Joseph P. Campanelli bought 2,500 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were acquired at an average cost of $20.16 per share, for a total transaction of $50,400.00. Following the purchase, the chief executive officer owned 396,661 shares of the company's stock, valued at $7,996,685.76. This represents a 0.63% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Over the last ninety days, insiders have acquired 8,500 shares of company stock worth $174,670. 5.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Integrated Wealth Concepts LLC grew its position in shares of NB Bancorp by 1.0% in the fourth quarter. Integrated Wealth Concepts LLC now owns 47,596 shares of the company's stock valued at $943,000 after purchasing an additional 482 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in NB Bancorp by 75.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,286 shares of the company's stock valued at $25,000 after purchasing an additional 553 shares during the period. The Manufacturers Life Insurance Company boosted its stake in NB Bancorp by 6.1% during the 4th quarter. The Manufacturers Life Insurance Company now owns 12,354 shares of the company's stock valued at $245,000 after purchasing an additional 708 shares during the period. Diversified Trust Co grew its holdings in NB Bancorp by 7.4% in the 1st quarter. Diversified Trust Co now owns 13,194 shares of the company's stock valued at $278,000 after buying an additional 910 shares during the last quarter. Finally, AFG Fiduciary Services Limited Partnership increased its position in NB Bancorp by 9.7% in the 4th quarter. AFG Fiduciary Services Limited Partnership now owns 10,970 shares of the company's stock worth $214,000 after buying an additional 970 shares during the period.

NB Bancorp Trading Down 10.5%

The company has a market capitalization of $867.17 million, a P/E ratio of 14.25 and a beta of 0.37. The company has a 50-day simple moving average of $21.51 and a 200 day simple moving average of $20.30. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.06 and a current ratio of 1.08.

NB Bancorp Company Profile

NB Bancorp, Inc NASDAQ: NBBK is the bank holding company for NB Bank, N.A., a full-service community bank headquartered in Newburyport, Massachusetts. Through a network of branches across Northeast Massachusetts and southern New Hampshire, the company offers deposit and lending services tailored to individuals and small- to medium-sized businesses.

The company's core product lineup includes checking and savings accounts, money market deposits and certificates of deposit, along with residential mortgage loans, home equity lines of credit and commercial lending solutions.

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