Northpointe Bancshares (NYSE:NPB) Shares Gap Down on Disappointing Earnings

Key Points

• Northpointe Bancshares shares gapped down after its earnings release, opening at $17.49 versus the prior close of $18.71 and later trading around $17.19. The stock fell roughly 8.2% on the day.
• The company missed earnings expectations, reporting $0.60 EPS versus the $0.68 consensus estimate, though revenue came in at $64.32 million. It also posted a 14.80% return on equity and a 17.92% net margin.
• Northpointe also declared a small quarterly dividend of $0.025 per share, payable August 4, for a 0.6% annualized yield. Analysts currently rate the stock a consensus Hold with an average price target of $20.50.

Northpointe Bancshares, Inc. (NYSE:NPB - Get Free Report) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $18.71, but opened at $17.49. Northpointe Bancshares shares last traded at $17.19, with a volume of 29,103 shares changing hands.

The company reported $0.60 EPS for the quarter, missing analysts' consensus estimates of $0.68 by ($0.08). The firm had revenue of $64.32 million for the quarter. Northpointe Bancshares had a return on equity of 14.80% and a net margin of 17.92%.

Northpointe Bancshares Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 4th. Investors of record on Wednesday, July 15th will be given a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a yield of 0.6%. The ex-dividend date is Wednesday, July 15th. Northpointe Bancshares's dividend payout ratio (DPR) is currently 4.50%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Piper Sandler upped their price objective on shares of Northpointe Bancshares from $21.00 to $22.00 and gave the stock an "overweight" rating in a research report on Thursday, July 2nd. Weiss Ratings restated a "sell (d)" rating on shares of Northpointe Bancshares in a research report on Friday, May 29th. Finally, Brean Capital assumed coverage on Northpointe Bancshares in a research note on Wednesday, April 22nd. They issued a "neutral" rating and a $20.25 price target for the company. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $20.50.

Insider Activity at Northpointe Bancshares

In other Northpointe Bancshares news, Director David Stevens Hooker sold 7,500 shares of the firm's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $17.82, for a total value of $133,650.00. Following the transaction, the director owned 11,500 shares in the company, valued at approximately $204,930. This trade represents a 39.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Alan Williams acquired 25,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was purchased at an average price of $17.21 per share, for a total transaction of $430,250.00. Following the acquisition, the chief executive officer directly owned 2,312,650 shares in the company, valued at $39,800,706.50. This represents a 1.09% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders sold 22,500 shares of company stock worth $410,141. Company insiders own 18.30% of the company's stock.

Institutional Investors Weigh In On Northpointe Bancshares

Hedge funds have recently modified their holdings of the business. JPMorgan Chase & Co. boosted its position in Northpointe Bancshares by 118.0% during the third quarter. JPMorgan Chase & Co. now owns 123,408 shares of the company's stock worth $2,108,000 after acquiring an additional 66,798 shares during the last quarter. Rockefeller Capital Management L.P. acquired a new stake in Northpointe Bancshares in the 4th quarter valued at about $965,000. Hsbc Holdings PLC lifted its stake in Northpointe Bancshares by 156.8% in the 4th quarter. Hsbc Holdings PLC now owns 65,852 shares of the company's stock worth $1,102,000 after purchasing an additional 40,207 shares in the last quarter. Two Sigma Investments LP lifted its stake in Northpointe Bancshares by 289.3% in the 3rd quarter. Two Sigma Investments LP now owns 161,812 shares of the company's stock worth $2,764,000 after purchasing an additional 120,250 shares in the last quarter. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Northpointe Bancshares by 41.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 225,336 shares of the company's stock worth $3,849,000 after purchasing an additional 65,662 shares during the last quarter.

Northpointe Bancshares Trading Down 8.2%

The company has a current ratio of 1.44, a quick ratio of 1.38 and a debt-to-equity ratio of 2.96. The company has a fifty day moving average price of $18.02 and a two-hundred day moving average price of $17.82. The firm has a market capitalization of $594.26 million and a price-to-earnings ratio of 7.74.

Northpointe Bancshares Company Profile

Northpointe Bancshares, Inc is the bank holding company for Northpointe Bank, an FDIC-insured community bank based in Michigan. The company offers a full range of commercial and consumer banking solutions, serving retail, small business and corporate clients through both a physical branch network and digital platforms.

Northpointe Bank’s product suite includes interest-bearing checking and savings accounts, money market and certificate of deposit offerings, as well as residential mortgage lending, home equity financing and unsecured consumer loans.

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