Northeast Bancorp (NASDAQ:NBN) Sees Large Increase in Short Interest

Key Points

• Short interest jumped 25.0% in March to 433,815 shares (about 6.2% of shares short), leaving a short-interest ratio of 3.8 days.
• Institutional investors are accumulating shares—AQR raised its stake by 61.3%, Goldman Sachs added 12.5%, and Jane Street established a new position—indicating growing institutional interest.
• Analysts are generally positive: Piper Sandler initiated coverage with an overweight rating and a $133 target, the consensus is a "Moderate Buy" with a $117.50 target, and the stock trades near $110 with a P/E of 10.6 after a slight EPS beat.

Northeast Bancorp (NASDAQ:NBN - Get Free Report) was the recipient of a large growth in short interest during the month of March. As of March 13th, there was short interest totaling 433,815 shares, a growth of 25.0% from the February 26th total of 346,952 shares. Based on an average daily volume of 114,049 shares, the short-interest ratio is currently 3.8 days. Approximately 6.2% of the company's shares are short sold.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in NBN. AQR Capital Management LLC grew its stake in shares of Northeast Bancorp by 61.3% during the first quarter. AQR Capital Management LLC now owns 9,324 shares of the financial services provider's stock worth $854,000 after purchasing an additional 3,542 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Northeast Bancorp by 4.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,157 shares of the financial services provider's stock valued at $381,000 after buying an additional 175 shares during the period. Dynamic Technology Lab Private Ltd lifted its stake in Northeast Bancorp by 15.7% in the first quarter. Dynamic Technology Lab Private Ltd now owns 2,765 shares of the financial services provider's stock valued at $253,000 after buying an additional 375 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Northeast Bancorp by 12.5% during the first quarter. Goldman Sachs Group Inc. now owns 68,362 shares of the financial services provider's stock worth $6,258,000 after buying an additional 7,579 shares during the last quarter. Finally, Jane Street Group LLC acquired a new position in shares of Northeast Bancorp during the 1st quarter worth about $411,000.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on NBN. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Northeast Bancorp in a report on Monday, December 29th. Piper Sandler initiated coverage on Northeast Bancorp in a research report on Monday, March 16th. They set an "overweight" rating and a $133.00 target price for the company. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $117.50.

Northeast Bancorp Trading Up 1.1%

Shares of NASDAQ NBN traded up $1.19 during mid-day trading on Monday, hitting $109.99. The company's stock had a trading volume of 132,803 shares, compared to its average volume of 116,262. Northeast Bancorp has a one year low of $78.17 and a one year high of $126.25. The company's fifty day simple moving average is $114.11 and its 200-day simple moving average is $103.40. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.27 and a quick ratio of 1.24. The stock has a market cap of $902.58 million, a price-to-earnings ratio of 10.61 and a beta of 0.58.

Northeast Bancorp (NASDAQ:NBN - Get Free Report) last posted its quarterly earnings results on Monday, January 26th. The financial services provider reported $2.47 earnings per share for the quarter, topping analysts' consensus estimates of $2.38 by $0.09. Northeast Bancorp had a net margin of 24.16% and a return on equity of 17.34%. The business had revenue of $51.77 million during the quarter, compared to the consensus estimate of $54.83 million.

Northeast Bancorp Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, February 25th. Shareholders of record on Wednesday, February 11th were given a dividend of $0.01 per share. The ex-dividend date was Wednesday, February 11th. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. Northeast Bancorp's payout ratio is presently 0.39%.

About Northeast Bancorp

Northeast Bancorp is a Maine-based bank holding company and the parent of Northeast Bank, a state‐chartered commercial bank headquartered in Lewiston, Maine. Through its subsidiary, the company provides a variety of financial services, including personal checking and savings accounts, residential mortgage lending, small business and commercial loans, treasury management and private banking services. The bank operates a branch network spanning central and southern Maine, serving individuals, families and local businesses across the region.

Founded in 1872 as Androscoggin County Savings Bank, the institution has evolved through mutual and stock conversions, adopting the Northeast Bank name in 2001 and forming Northeast Bancorp as its mutual holding company in 2013.

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