Piper Sandler lowers Northfield Bancorp stock price target after first-quarter results

On Wednesday, Piper Sandler revised its outlook on Northfield Bancorp (NASDAQ: ) stock, lowering the price target to $11.00 from $13.00 previously. The company maintained a neutral rating on the stock.

The adjustment comes after Northfield Bancorp reported first-quarter 2024 earnings of $0.15 per share (EPS). That number is considered core earnings per share for the bank, Piper Sandler said. The reported results were in line with consensus estimates but missed Piper Sandler's forecast by a penny.

The earnings report showed Northfield Bancorp's expense beat forecasts by $0.02, while net interest income (NII) missed forecasts by a penny.

However, these higher expenses were partially offset by a one-cent reduction in reserves during the quarter. Another highlight of the bank's financial results was the completion of its previous share repurchase program, which resulted in the repurchase of 253,000 shares at an average price of $12.17 per share.

Along with the earnings announcement, Northfield Bancorp also announced $5 million in new stock repurchase authorization. At the current share price, this new buyback program is equivalent to approximately 1.3% of the company's outstanding shares.

The completion of the repurchase program and the announcement of new authorizations were an important part of the bank's first-quarter financial activity.

The price target revision reflects Piper Sandler's analysis of Northfield Bancorp's quarterly results and the bank's ongoing strategy, which includes share repurchases. The new price target of $11.00 represents Piper Sandler's current valuation of the bank's stock based on these factors.

Investment Professional Insights

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Data from InvestingPro highlights Northfield Bancorp's (NASDAQ: NFBK ) current market position, with a market capitalization of $370.82 million and a price-to-earnings ratio of 11.34, based on the trailing twelve months to Q1 2024. The earnings ratio is 11.52. Notably, Northfield Bancorp offers a high dividend yield of 6.24%, reflecting its commitment to shareholder returns, which it has maintained for 17 consecutive years.

Two InvestingPro tips that are particularly relevant to Northfield Bancorp investors are the aggressive stock repurchase strategy that management has employed and the large dividends it pays to shareholders. These actions demonstrate the company's focus on returning value to shareholders. Furthermore, with the stock trading near its 52-week low and experiencing price declines over the past three months, these strategic moves by management can be viewed as an effort to boost shareholder confidence during a period of lower share prices.

For readers who want a deeper understanding of Northfield Bancorp's financial health and strategic outlook, InvestingPro provides additional tips and detailed analysis. Northfield Bancorp also provides nine additional InvestingPro Tips at https://www.investing.com/pro/NFBK to provide further insights for investment decisions.To access these insights, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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