Northeast Bancorp (NASDAQ:NBN) Shares Up 6.3% After Strong Earnings

Key Points

• Shares rose 6.3% after the company beat estimates with quarterly EPS of $3.53 (vs. $3.00 consensus) and revenue of $66.62M (vs. $61.49M), lifting the stock from a $123.57 close to about $131 intraday.
• The board declared a quarterly dividend of $0.01 (annualized $0.04) with an ex-dividend date of May 12 and payment on May 26, implying a negligible yield and a dividend payout ratio of 0.39%.
• Analyst and institutional interest is supportive: Piper Sandler initiated coverage with an "overweight" rating and $133 price target, MarketBeat's average target is $117.50, and funds including Earnest Partners and Vanguard have recently increased stakes.

Northeast Bancorp (NASDAQ:NBN - Get Free Report) shot up 6.3% on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $130.45 and last traded at $131.3550. 57,441 shares changed hands during trading, a decline of 49% from the average session volume of 111,876 shares. The stock had previously closed at $123.57.

The financial services provider reported $3.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.00 by $0.53. Northeast Bancorp had a return on equity of 17.34% and a net margin of 24.16%.The business had revenue of $66.62 million for the quarter, compared to analyst estimates of $61.49 million.

Northeast Bancorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Tuesday, May 12th will be given a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 0.0%. The ex-dividend date is Tuesday, May 12th. Northeast Bancorp's dividend payout ratio (DPR) is currently 0.39%.

Wall Street Analyst Weigh In

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

Institutional Trading of Northeast Bancorp

Several hedge funds have recently added to or reduced their stakes in the business. Earnest Partners LLC acquired a new stake in Northeast Bancorp during the 3rd quarter worth $67,225,000. Vanguard Group Inc. raised its stake in Northeast Bancorp by 2.3% during the 4th quarter. Vanguard Group Inc. now owns 434,490 shares of the financial services provider's stock worth $45,157,000 after buying an additional 9,926 shares during the period. Boston Partners raised its stake in Northeast Bancorp by 0.4% during the 3rd quarter. Boston Partners now owns 271,711 shares of the financial services provider's stock worth $27,018,000 after buying an additional 1,029 shares during the period. American Century Companies Inc. raised its stake in Northeast Bancorp by 8.5% during the 3rd quarter. American Century Companies Inc. now owns 220,712 shares of the financial services provider's stock worth $22,107,000 after buying an additional 17,344 shares during the period. Finally, Kennedy Capital Management LLC raised its stake in Northeast Bancorp by 13.5% during the 3rd quarter. Kennedy Capital Management LLC now owns 204,112 shares of the financial services provider's stock worth $20,444,000 after buying an additional 24,327 shares during the period.

Northeast Bancorp Price Performance

The firm has a market cap of $1.07 billion, a price-to-earnings ratio of 12.59 and a beta of 0.58. The company has a current ratio of 1.27, a quick ratio of 1.24 and a debt-to-equity ratio of 0.97. The company has a 50 day moving average of $114.76 and a 200 day moving average of $105.86.

Northeast Bancorp Company Profile

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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