Northpointe Bancshares (NYSE:NPB) Reaches New 12-Month Low After Earnings Miss

Key Points

• Northpointe Bancshares shares hit a new 52-week low after quarterly EPS came in at $0.39, well below the $0.60 analyst consensus. The stock fell as low as $13.80, while quarterly revenue totaled $55.92 million.
• The company increased its quarterly dividend to $0.03 per share from $0.025, implying an annualized dividend of $0.12 and a 0.8% yield.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $20.42; CEO Charles Williams also bought roughly $819,000 of shares, increasing his stake by 2.06%.

Northpointe Bancshares, Inc. (NYSE:NPB - Get Free Report) reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $13.80 and last traded at $14.7410, with a volume of 353,175 shares. The stock had previously closed at $15.78.

The company reported $0.39 EPS for the quarter, missing analysts' consensus estimates of $0.60 by ($0.21). Northpointe Bancshares had a return on equity of 14.99% and a net margin of 17.72%. The company had revenue of $55.92 million for the quarter.

Northpointe Bancshares Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 4th. Investors of record on Thursday, October 15th will be paid a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a dividend yield of 0.8%. This is a positive change from Northpointe Bancshares's previous quarterly dividend of $0.0250. The ex-dividend date of this dividend is Thursday, October 15th. Northpointe Bancshares's payout ratio is presently 5.19%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Piper Sandler cut their price target on shares of Northpointe Bancshares from $21.50 to $20.00 and set an "overweight" rating on the stock in a research report on Friday, October 9th. Zacks Research raised Northpointe Bancshares from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings upgraded shares of Northpointe Bancshares from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, September 9th. Finally, Keefe, Bruyette & Woods lowered their price target on Northpointe Bancshares from $22.00 to $21.00 and set an "outperform" rating on the stock in a research report on Thursday, July 23rd. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $20.42.

Insider Buying and Selling

In other Northpointe Bancshares news, CEO Charles Williams bought 48,312 shares of Northpointe Bancshares stock in a transaction on Wednesday, August 26th. The shares were purchased at an average price of $16.95 per share, with a total value of $818,888.40. Following the acquisition, the chief executive officer owned 2,390,962 shares in the company, valued at $40,526,805.90. This trade represents a 2.06% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 18.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Northpointe Bancshares

Hedge funds have recently made changes to their positions in the stock. Mendon Capital Advisors Corp boosted its position in shares of Northpointe Bancshares by 86.4% during the 1st quarter. Mendon Capital Advisors Corp now owns 308,624 shares of the company's stock valued at $5,327,000 after purchasing an additional 143,010 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Northpointe Bancshares by 126.9% during the first quarter. Bank of America Corp DE now owns 215,544 shares of the company's stock valued at $3,720,000 after purchasing an additional 120,554 shares during the period. Bank of New York Mellon Corp acquired a new position in Northpointe Bancshares during the 2nd quarter worth approximately $1,756,000. Segall Bryant & Hamill LLC acquired a new stake in Northpointe Bancshares in the 1st quarter valued at $1,515,000. Finally, Hsbc Holdings PLC lifted its stake in shares of Northpointe Bancshares by 22.3% in the first quarter. Hsbc Holdings PLC now owns 80,507 shares of the company's stock valued at $1,385,000 after buying an additional 14,655 shares in the last quarter.

Northpointe Bancshares Price Performance

The firm has a market cap of $509.54 million, a price-to-earnings ratio of 6.36 and a beta of 0.16. The company has a debt-to-equity ratio of 2.66, a quick ratio of 1.34 and a current ratio of 1.40. The business has a 50 day simple moving average of $16.38 and a 200-day simple moving average of $17.35.

About Northpointe Bancshares

Northpointe Bancshares, Inc is a bank holding company headquartered in Grand Rapids, Michigan. It operates through Northpointe Bank, a financial institution focused on providing banking and lending services to consumers and businesses.

Northpointe Bank offers residential mortgage products, including loans for home purchases and refinancing, as well as home equity lending. Its deposit products include checking, savings, money market and certificate of deposit accounts. The bank also provides personal and commercial banking services designed to meet the borrowing, cash-management and deposit needs of individuals and businesses.

Through a combination of digital banking capabilities, mortgage lending channels and its physical banking presence, Northpointe serves customers in Michigan and markets across the United States.

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