State Street Corp Reduces Stake in The Bank of N.T. Butterfield & Son Limited (NYSE:NTB)

On December 22, 2024, it was reported that State Street Corp has decreased its investment in The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) by 1.2% during the third quarter of the fiscal year. The details were disclosed following the firm’s filing of Form 13F with the SEC. After this adjustment, State Street Corp now holds a total of 815,775 shares of the bank's stock, which is valued at approximately $30,086,000. This came after the company sold 9,804 shares throughout the quarter.

Other institutional investors have also made changes to their positions in The Bank of N.T. Butterfield & Son recently. For instance, Bank of New York Mellon Corp increased its stake by 2.9% during the second quarter, bringing its total ownership to 173,041 shares worth about $5,883,000. Meanwhile, Principal Financial Group Inc. expanded its position by 14.1%, now owning 28,946 shares valued at $1,017,000 after acquiring an additional 3,574 shares. Furthermore, Commonwealth Equity Services LLC entered a new investment in the second quarter, valued at about $855,000, while Victory Capital Management Inc. boosted its holdings by 45.6%, now boasting 381,876 shares valued at roughly $13,411,000. Similarly, Hahn Capital Management LLC increased its stake by 20.2%, owning 89,826 shares worth $3,155,000 after purchasing an additional 15,075 shares. Collectively, hedge funds and institutional investors possess approximately 62.73% of the company's stock.

Recent Stock Performance

As of Friday, shares of The Bank of N.T. Butterfield & Son opened at $36.51. The company recorded a 1-year low of $28.73 and a high of $40.55. Its 50-day moving average is $37.68, and its 200-day moving average is $36.79. The bank has a market capitalization of $1.83 billion, a price-to-earnings (PE) ratio of 8.13, and a beta of 1.17. Its current ratio and quick ratio both stand at 0.66, while the debt-to-equity ratio is 0.09.

The latest earnings report from The Bank of N.T. Butterfield & Son was released on October 22nd, showing an earnings per share (EPS) of $1.16 for the quarter. This figure surpassed analysts' expectations of $1.10 by $0.06. The bank also reported a return on equity of 21.14% and a net margin of 25.93%, with quarterly revenue amounting to $142.70 million, which is slightly above analysts' forecasts of $142.07 million. Comparing year-over-year, revenue was up by 0.7%. Analysts predict that The Bank of N.T. Butterfield & Son will achieve an EPS of 4.52 for the current fiscal year.

Dividend Announced

Recently, the bank declared a quarterly dividend, which was distributed to shareholders on November 19th, payable to those on record by November 5th. Shareholders received a dividend of $0.44 per share, which translates to an annualized dividend of $1.76, yielding 4.82%. The payout ratio stands at 39.20%.

Analyst Ratings and Forecast

In other news, Keefe, Bruyette & Woods upgraded its outlook for The Bank of N.T. Butterfield & Son by changing its rating from “outperform” to a “market perform” status, and decreased its target price from $44.00 to $41.00 in a report dated October 2nd. Currently, one investment analyst holds a ‘hold’ rating on the stock, while four analysts have recommended a buy. According to data from MarketBeat, the consensus rating for the bank is a “Moderate Buy,” with a price target set at $39.60.

About The Bank of N.T. Butterfield & Son Limited

The Bank of N.T. Butterfield & Son Limited provides a variety of banking services including community, commercial, and private banking tailored for individuals and small to medium-sized businesses. The bank offers different types of accounts such as retail and corporate checking and savings. Their lending services encompass residential mortgages, auto loans, consumer financing, credit cards, commercial real estate loans, and industrial loans, among others.

Banking, Investment, Finance