On Wednesday, Piper Sandler adjusted its outlook on Northfield Bancorp (NASDAQ:NFBK) shares, reducing the price target to $11.00 from the previous $13.00. The firm maintained a Neutral rating on the stock.
The adjustment follows Northfield Bancorp's first-quarter earnings for 2024, which reported earnings per share (EPS) of $0.15. According to Piper Sandler, this figure is considered the core EPS for the bank. The reported results were consistent with the consensus estimate but fell short of Piper Sandler's expectation by one cent.
The earnings report revealed that Northfield Bancorp's expenses exceeded projections by $0.02, while net interest income (NII) was a penny below expectations.
However, these higher expenses were somewhat balanced by a reduction in provisioning for the quarter by a cent. The bank's financial performance was also marked by the completion of its previous share repurchase program, with 253,000 shares bought back at an average cost of $12.17 per share.
In conjunction with the earnings announcement, Northfield Bancorp unveiled a new share repurchase authorization of $5 million. At the current share prices, this new buyback program is equivalent to approximately 1.3% of the company's outstanding shares.
The repurchase program completion and the announcement of the new authorization were significant components of the bank's first-quarter financial activities.
The price target revision reflects Piper Sandler's analysis of Northfield Bancorp's quarterly performance and the bank's ongoing strategies, including share repurchases. The new price target of $11.00 represents Piper Sandler's current valuation of the bank's stock based on these factors.
InvestingPro Insights
InvestingPro data highlights Northfield Bancorp's (NASDAQ:NFBK) current market position with a market capitalization of $370.82 million and a P/E ratio of 11.34, which adjusts slightly to 11.52 when looking at the last twelve months as of Q1 2024. Despite a decline in revenue growth by 20.06% over the last twelve months, the company's operating income margin remains strong at 36.02%. Notably, Northfield Bancorp offers a substantial dividend yield of 6.24%, reflecting its commitment to shareholder returns, which has been consistent for 17 consecutive years.
Two InvestingPro Tips that are particularly relevant for Northfield Bancorp investors are the aggressive share buyback strategy management has been employing and the significant dividend payments to shareholders. These actions are indicative of the company's focus on returning value to its shareholders. Additionally, with the stock trading near its 52-week low and having experienced a price drop over the last three months, these strategic moves by management could be seen as efforts to bolster shareholder confidence during a period of lower stock prices.
For readers looking to delve deeper into Northfield Bancorp's financials and strategic outlook, InvestingPro offers additional tips and detailed analysis. There are 9 more InvestingPro Tips available for Northfield Bancorp at https://www.investing.com/pro/NFBK, which could provide further insights into investment decisions. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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