NB Bancorp (NASDAQ:NBBK) Shares Gap Up on Earnings Beat

Key Points

• NB Bancorp shares gapped up after the company reported quarterly results that beat expectations, opening above the prior close and trading higher on the news.
• The bank posted EPS of $0.55 versus the $0.48 consensus estimate, while revenue came in at $74.7 million, also ahead of forecasts.
• NB Bancorp also announced a quarterly dividend of $0.07 per share, and analysts currently have a consensus Moderate Buy rating with a $26 price target.

NB Bancorp, Inc. (NASDAQ:NBBK - Get Free Report)'s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $21.09, but opened at $22.09. NB Bancorp shares last traded at $22.40, with a volume of 88,934 shares.

The company reported $0.55 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.48 by $0.07. The company had revenue of $74.70 million during the quarter, compared to the consensus estimate of $72.74 million. NB Bancorp had a return on equity of 8.57% and a net margin of 13.81%.

NB Bancorp Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Wednesday, August 5th will be issued a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Wednesday, August 5th. NB Bancorp's dividend payout ratio (DPR) is 20.44%.

Wall Street Analyst Weigh In

NBBK has been the topic of several analyst reports. Piper Sandler reiterated an "overweight" rating and set a $26.00 price target (up from $24.00) on shares of NB Bancorp in a report on Thursday. Zacks Research raised shares of NB Bancorp from a "strong sell" rating to a "hold" rating in a research note on Monday, June 22nd. Finally, Weiss Ratings raised shares of NB Bancorp from a "hold (c)" rating to a "buy (b-)" rating in a research note on Tuesday, July 14th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $26.00.

Insiders Place Their Bets

In related news, CEO Joseph P. Campanelli purchased 3,000 shares of NB Bancorp stock in a transaction that occurred on Friday, May 15th. The shares were bought at an average price of $19.18 per share, with a total value of $57,540.00. Following the purchase, the chief executive officer directly owned 377,790 shares of the company's stock, valued at approximately $7,246,012.20. This represents a 0.80% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Hope Pascucci acquired 20,000 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The shares were bought at an average price of $19.46 per share, with a total value of $389,200.00. Following the acquisition, the director directly owned 142,402 shares in the company, valued at $2,771,142.92. This represents a 16.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders acquired 25,500 shares of company stock worth $495,365. Insiders own 5.10% of the company's stock.

Institutional Investors Weigh In On NB Bancorp

A number of institutional investors and hedge funds have recently bought and sold shares of NBBK. AQR Capital Management LLC bought a new stake in shares of NB Bancorp in the first quarter valued at about $253,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in NB Bancorp by 4.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,127 shares of the company's stock valued at $418,000 after purchasing an additional 975 shares during the period. Millennium Management LLC increased its position in NB Bancorp by 13.1% during the 1st quarter. Millennium Management LLC now owns 253,543 shares of the company's stock valued at $4,582,000 after purchasing an additional 29,373 shares during the period. Jane Street Group LLC raised its holdings in shares of NB Bancorp by 54.3% in the 1st quarter. Jane Street Group LLC now owns 54,613 shares of the company's stock valued at $987,000 after purchasing an additional 19,213 shares in the last quarter. Finally, Legal & General Group Plc raised its holdings in shares of NB Bancorp by 3.7% in the 2nd quarter. Legal & General Group Plc now owns 62,014 shares of the company's stock valued at $1,108,000 after purchasing an additional 2,237 shares in the last quarter.

NB Bancorp Price Performance

The firm's 50-day moving average price is $20.47 and its two-hundred day moving average price is $20.84. The stock has a market cap of $1.00 billion, a PE ratio of 16.28 and a beta of 0.03. The company has a current ratio of 1.07, a quick ratio of 1.06 and a debt-to-equity ratio of 0.23.

About NB Bancorp

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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