In a recent transaction on June 12, Frank P. Patafio, a director at Northfield Bancorp, Inc. (NASDAQ:NFBK), purchased 10,000 shares of the company's common stock at a price of $8.14 per share, amounting to a total investment of $81,400. This move increases Patafio's direct holdings in the company to 148,307 shares, according to the latest SEC filings.
Northfield Bancorp, based in Woodbridge, New Jersey, is a federally chartered savings institution. The company's stock is traded on the NASDAQ stock exchange under the ticker symbol NFBK. The transaction was made public through a Form 4 filing with the Securities and Exchange Commission.
The Form 4 filing also disclosed that Patafio's spouse indirectly owns 119,424 shares of Northfield Bancorp's common stock. Additionally, Patafio holds 32,000 stock options with a conversion or exercise price of $14.76, which are set to expire on May 27, 2025.
The recent purchase by the director demonstrates a positive sentiment towards the company's stock and increases his stake in the company's success. Investors often keep a close eye on insider transactions as they can provide insights into how the company's executives and directors view the stock's value and future prospects.
The signature on the SEC filing was provided by Steven M. Klein, pursuant to Power of Attorney, on June 13, the day following the transaction. The purchase represents a notable addition to Patafio's investment in Northfield Bancorp, and the company's investors may consider this a sign of confidence from the director's perspective.
In other recent news, Northfield Bancorp's first-quarter earnings for 2024 were released, reporting earnings per share (EPS) of $0.15, consistent with consensus estimates but falling short of Piper Sandler's expectation by one cent. The bank's expenses exceeded projections by $0.02, while net interest income was a penny below expectations. On a positive note, Northfield Bancorp balanced these higher expenses with a decrease in provisioning for the quarter. These are among the recent developments for the company.
The bank also completed its previous share repurchase program, buying back 253,000 shares at an average cost of $12.17 per share. Following this, Northfield Bancorp announced a new share repurchase authorization of $5 million, equivalent to roughly 1.3% of the company's outstanding shares.
In response to these developments, Piper Sandler adjusted its outlook on Northfield Bancorp shares, reducing the price target to $11.00 from the previous $13.00 while maintaining a Neutral rating. The revised price target reflects Piper Sandler's analysis of Northfield Bancorp's quarterly performance and ongoing strategies, including share repurchases.
InvestingPro Insights
Following the recent insider purchase by director Frank P. Patafio at Northfield Bancorp, Inc. (NASDAQ:NFBK), the company's financial health and future outlook are of particular interest to current and potential investors. According to InvestingPro data, Northfield Bancorp's market capitalization stands at $351.21 million, with a price-to-earnings (P/E) ratio of 10.59, reflecting investor sentiment about the company's earnings potential.
Despite a challenging environment, Northfield Bancorp has maintained a consistent return to its shareholders, boasting a significant dividend yield of 6.47%, a testament to its commitment to shareholder value. This is particularly compelling as the company has upheld its dividend payments for 17 consecutive years, indicating a stable financial position and a reliable income stream for investors.
However, an InvestingPro Tip reveals that management has been aggressively buying back shares, which could signal a belief in the company's undervalued stock price or a strategy to boost earnings per share. Additionally, analysts have adjusted their earnings expectations downwards for the upcoming period, which investors should monitor alongside the company's next earnings date on July 24, 2024.
For those looking to delve deeper into Northfield Bancorp's performance and strategic direction, there are additional InvestingPro Tips available. For instance, while the company has faced weak gross profit margins, it remains profitable over the last twelve months, and analysts predict profitability will continue this year. With access to an array of expert analyses and metrics, investors can make more informed decisions using InvestingPro. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable insights.
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