Short Interest in Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB) Declines By 35.6%

Key Points

• Short interest in Bank of N.T. Butterfield & Son (NYSE:NTB) fell sharply in April, dropping 35.6% to 304,854 shares as of April 30. That amounts to about 0.7% of shares outstanding, with a days-to-cover ratio of 2.0.
• Analysts remain mixed but broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $55. Wells Fargo and KBW raised their price targets, while Zacks Research downgraded the stock to hold.
• The bank continues to show solid shareholder returns, including a $0.50 quarterly dividend and a recently authorized $3 million share buyback plan. The stock also traded up 2.3% to $55.94, near its 12-month high.

Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB - Get Free Report) was the target of a significant drop in short interest in April. As of April 30th, there was short interest totaling 304,854 shares, a drop of 35.6% from the April 15th total of 473,366 shares. Approximately 0.7% of the shares of the stock are short sold. Based on an average trading volume of 155,355 shares, the days-to-cover ratio is presently 2.0 days.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on NTB. Wells Fargo & Company lifted their price objective on Bank of N.T. Butterfield & Son from $50.00 to $57.00 and gave the stock an "equal weight" rating in a research report on Thursday, February 12th. Weiss Ratings upgraded Bank of N.T. Butterfield & Son from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Monday, April 6th. Zacks Research downgraded Bank of N.T. Butterfield & Son from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Finally, Keefe, Bruyette & Woods lifted their price objective on Bank of N.T. Butterfield & Son from $52.00 to $58.00 and gave the stock a "market perform" rating in a research report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $55.00.

Institutional Investors Weigh In On Bank of N.T. Butterfield & Son

Institutional investors have recently modified their holdings of the company. Bell Investment Advisors Inc grew its stake in shares of Bank of N.T. Butterfield & Son by 284.4% in the third quarter. Bell Investment Advisors Inc now owns 615 shares of the bank's stock valued at $26,000 after buying an additional 455 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Bank of N.T. Butterfield & Son by 204.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 779 shares of the bank's stock worth $34,000 after purchasing an additional 523 shares in the last quarter. Jones Financial Companies Lllp grew its stake in Bank of N.T. Butterfield & Son by 234.1% during the 3rd quarter. Jones Financial Companies Lllp now owns 959 shares of the bank's stock worth $42,000 after purchasing an additional 672 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in Bank of N.T. Butterfield & Son by 3,371.0% during the 3rd quarter. PNC Financial Services Group Inc. now owns 1,076 shares of the bank's stock worth $46,000 after purchasing an additional 1,045 shares in the last quarter. Finally, CIBC Private Wealth Group LLC acquired a new position in Bank of N.T. Butterfield & Son during the 3rd quarter worth $56,000. 62.73% of the stock is owned by institutional investors and hedge funds.

Bank of N.T. Butterfield & Son Stock Up 2.3%

NYSE:NTB traded up $1.25 on Monday, reaching $55.94. The company's stock had a trading volume of 191,994 shares, compared to its average volume of 163,306. Bank of N.T. Butterfield & Son has a 12-month low of $40.59 and a 12-month high of $57.84. The firm has a market cap of $2.35 billion, a price-to-earnings ratio of 9.68 and a beta of 0.51. The stock has a 50 day moving average price of $53.87 and a 200 day moving average price of $51.18.

Bank of N.T. Butterfield & Son (NYSE:NTB - Get Free Report) last posted its earnings results on Tuesday, March 31st. The bank reported $1.55 EPS for the quarter. Bank of N.T. Butterfield & Son had a return on equity of 21.92% and a net margin of 30.22%.The company had revenue of $93.29 million for the quarter. Equities research analysts expect that Bank of N.T. Butterfield & Son will post 6.32 EPS for the current fiscal year.

Bank of N.T. Butterfield & Son announced that its Board of Directors has authorized a share buyback plan on Monday, February 9th that permits the company to repurchase $3.00 million in shares. This repurchase authorization permits the bank to purchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Bank of N.T. Butterfield & Son Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Wednesday, May 13th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 3.6%. Bank of N.T. Butterfield & Son's payout ratio is presently 34.60%.

About Bank of N.T. Butterfield & Son

Bank of N.T. Butterfield & Son Limited, commonly known as Butterfield, is a Bermuda-based provider of banking and wealth management services. Founded in 1858, the firm has grown from a local colonial bank into an international financial institution. With a focus on personalized client service, Butterfield offers a comprehensive suite of banking and fiduciary solutions to private individuals, families, and corporate clients.

The bank's core activities include private banking, retail and commercial lending, trust and corporate administration, and fund services.

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