Northwest Bancshares, Inc. (NASDAQ:NWBI) reported a notable stock purchase by director Mark A. Paup, according to the company's latest SEC filing. Paup acquired 12,000 shares of Northwest Bancshares' common stock, with the total transaction amounting to approximately $128,166. The shares were bought at an average price ranging from $10.65 to $10.69, as detailed in the filing.
This move increases Paup's direct ownership in the company to 49,979 shares. Additionally, the filing revealed that Paup's spouse indirectly holds 11,919.834 shares of Northwest Bancshares, Inc. common stock. The transactions reported in the filing reflect changes in ownership that are not required to be reported under Section 16 of the Securities Exchange Act of 1934.
Investors often monitor insider buying as it can be a signal of a director's confidence in the company's prospects. Northwest Bancshares, Inc. is a financial institution headquartered in Warren, Pennsylvania, and the purchase by Paup may attract the attention of current and potential shareholders.
The reported transactions provide a snapshot of insider activity and ownership stakes within Northwest Bancshares, highlighting the ongoing investment by individuals closely associated with the company.
In other recent news, Northwest Bancshares, Inc. has experienced changes in stock price targets from both Keefe, Bruyette & Woods and Piper Sandler following the company's first-quarter results. Keefe, Bruyette & Woods lowered its price target from $13 to $12, maintaining a Market Perform rating due to anticipated funding pressures, despite acknowledging the bank's attempts to improve yields through portfolio redeployment. Piper Sandler also adjusted its outlook, reducing the stock price target from $11 to $10, after considering the bank's first-quarter financial report.
Northwest Bancshares reported earnings per share (EPS) of $0.23 for the first quarter of 2024, slightly exceeding expectations due to a $0.02 reduction in provisioning. However, a shortfall in net interest income (NII) was noted, attributed to lower than anticipated net interest margin (NIM) and balance sheet trends. Despite these challenges, the bank plans to mitigate them with a projected increase in the run rate following a planned securities sale.
Credit trends for Northwest Bancshares remained stable in the first quarter, with a notable positive trend in a commercial real estate loan to a long-term healthcare facility. These recent developments reflect the ongoing adjustments and strategies implemented by Northwest Bancshares in response to current financial trends and pressures.
InvestingPro Insights
Amid the recent insider stock purchase by director Mark A. Paup, Northwest Bancshares, Inc. (NASDAQ:NWBI) presents a mix of financial metrics and market performance that potential investors may find intriguing. With a market cap of approximately $1.37 billion and a price-to-earnings (P/E) ratio that has slightly decreased to 10.21 over the last twelve months as of Q1 2024, the company shows signs of being valued at a reasonable earnings multiple in the market.
An InvestingPro Tip worth noting is that Northwest Bancshares has a dividend yield of 7.49%, which is particularly attractive to income-focused investors. This is underscored by the company's impressive track record of maintaining dividend payments for 30 consecutive years, highlighting its commitment to shareholder returns. Furthermore, the company has been profitable over the last twelve months, a reassuring sign for investors looking at the company's performance consistency.
However, investors should be aware that the company suffers from weak gross profit margins and that net income is expected to drop this year. Despite these challenges, analysts predict the company will remain profitable this year. For those interested in a deeper dive, there are additional InvestingPro Tips available, including insights on revenue growth and operating income margins. For example, the company has reported a subtle revenue growth of 0.88% over the last twelve months as of Q1 2024.
For investors looking to explore more about Northwest Bancshares, including further detailed analysis and additional InvestingPro Tips, visit https://www.investing.com/pro/NWBI. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full potential of InvestingPro's insights.
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