Northpointe Bancshares (NYSE:NPB) Stock Price Down 5.6% on Disappointing Earnings

Key Points

• Northpointe missed quarterly earnings, reporting $0.62 EPS versus $0.66 expected, and the stock fell about 5.6% to roughly $18.11 on markedly lighter volume.
• The board declared a quarterly dividend of $0.025 per share (annualized $0.10) with a yield of ~0.6%, payable May 4 and ex-dividend April 15.
• Insiders have sold 73,895 shares (~$1.30M) in the last 90 days while retaining 18.3% ownership, and institutions including Goldman Sachs initiated notable new positions.

Shares of Northpointe Bancshares, Inc. (NYSE:NPB - Get Free Report) fell 5.6% on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $18.03 and last traded at $18.1090. 21,190 shares were traded during mid-day trading, a decline of 93% from the average session volume of 295,252 shares. The stock had previously closed at $19.19.

The company reported $0.62 earnings per share for the quarter, missing analysts' consensus estimates of $0.66 by ($0.04). The business had revenue of $63.42 million for the quarter. Northpointe Bancshares had a return on equity of 14.00% and a net margin of 17.70%.

Northpointe Bancshares Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Wednesday, April 15th will be paid a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Wednesday, April 15th. Northpointe Bancshares's dividend payout ratio (DPR) is 4.78%.

Analyst Upgrades and Downgrades

NPB has been the topic of a number of research analyst reports. Brean Capital assumed coverage on shares of Northpointe Bancshares in a research note on Wednesday. They issued a "neutral" rating and a $20.25 price target on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Northpointe Bancshares in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Northpointe Bancshares presently has a consensus rating of "Hold" and an average target price of $19.83.

Insider Buying and Selling

In related news, EVP Amy M. Butler sold 9,911 shares of the firm's stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $18.02, for a total transaction of $178,596.22. Following the completion of the transaction, the executive vice president directly owned 6,365 shares in the company, valued at $114,697.30. This trade represents a 60.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Richard Jeffery Dean sold 57,619 shares of Northpointe Bancshares stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $17.55, for a total value of $1,011,213.45. Following the completion of the transaction, the director directly owned 557,171 shares of the company's stock, valued at approximately $9,778,351.05. This represents a 9.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 73,895 shares of company stock valued at $1,301,197. Corporate insiders own 18.30% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Cubist Systematic Strategies LLC purchased a new stake in Northpointe Bancshares during the 1st quarter worth approximately $26,000. Goldman Sachs Group Inc. acquired a new position in shares of Northpointe Bancshares in the first quarter worth $9,908,000. Jane Street Group LLC acquired a new position in shares of Northpointe Bancshares in the first quarter worth $146,000. Geode Capital Management LLC increased its position in shares of Northpointe Bancshares by 138.9% during the second quarter. Geode Capital Management LLC now owns 234,789 shares of the company's stock worth $3,220,000 after acquiring an additional 136,490 shares during the period. Finally, JPMorgan Chase & Co. purchased a new stake in shares of Northpointe Bancshares during the second quarter worth $776,000.

Northpointe Bancshares Stock Performance

The firm has a market capitalization of $624.69 million, a price-to-earnings ratio of 8.67 and a beta of 0.23. The company has a debt-to-equity ratio of 2.70, a current ratio of 1.40 and a quick ratio of 1.34. The firm has a 50 day moving average price of $17.79 and a 200-day moving average price of $17.37.

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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