State Street Corp Reduces Stake in The Bank of N.T. Butterfield & Son Limited

On December 22nd, 2024, it was reported that State Street Corp has reduced its holdings in The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) by 1.2% during the third quarter, according to their latest Form 13F filing with the SEC. Following this adjustment, State Street Corp owned 815,775 shares of the bank, after selling 9,804 shares in the quarter. The current value of these holdings stands at approximately $30,086,000 based on the recent filing.

In addition to State Street Corp, other institutional investors and hedge funds have also made shifts in their positions with The Bank of N.T. Butterfield & Son. For instance, Bank of New York Mellon Corp increased its stake by 2.9% in the second quarter, acquiring an additional 4,881 shares. This brought their total holdings to 173,041 shares, valued at about $5,883,000.

Principal Financial Group Inc. also expanded its position by 14.1% during the same quarter, resulting in ownership of 28,946 shares, worth approximately $1,017,000. Commonwealth Equity Services LLC entered a new position valued at about $855,000. Victory Capital Management Inc. significantly raised its holdings by 45.6%, resulting in ownership of 381,876 shares valued at $13,411,000 after acquiring an additional 119,572 shares. Hahn Capital Management LLC also increased its stake in the bank by 20.2%, now owning 89,826 shares valued at around $3,155,000. Currently, 62.73% of the stock is owned by hedge funds and other institutional investors.

Stock Performance Overview

As of Friday, shares of NYSE NTB opened at $36.51. The Bank of N.T. Butterfield & Son Limited has experienced a 1-year low of $28.73 and a 1-year high of $40.55. Its 50-day moving average stands at $37.68, while the two-hundred day moving average is $36.79. With a market capitalization of $1.83 billion, the bank has a price-to-earnings (PE) ratio of 8.13 and a beta of 1.17. The company’s financial health is reflected in its current and quick ratios of 0.66, and a low debt-to-equity ratio of 0.09.

Recently, The Bank of N.T. Butterfield & Son announced its earnings results on October 22nd. The bank reported earnings per share (EPS) of $1.16 for the quarter, surpassing analysts' expectations of $1.10 by $0.06. Additionally, the bank achieved a return on equity of 21.14% and a net margin of 25.93%. It generated revenues of $142.70 million, slightly above the forecasted $142.07 million. Compared to the same period last year, the company's revenue grew by 0.7%. Analysts anticipate that the bank will post an EPS of 4.52 for the current fiscal year.

Dividend Announcement

The Bank of N.T. Butterfield & Son also declared a quarterly dividend, which was distributed on November 19th. Shareholders of record as of November 5th received a dividend of $0.44 per share, marking an annualized dividend of $1.76, corresponding to a yield of 4.82%. Currently, the bank’s payout ratio stands at 39.20%.

Wall Street Analyst Ratings

In a recent report, Keefe, Bruyette & Woods downgraded the shares of The Bank of N.T. Butterfield & Son from “outperform” to “market perform.” They also revised their target price for the bank from $44.00 to $41.00. According to MarketBeat data, one investment analyst has issued a hold rating, while four analysts recommend buying the stock. The consensus rating for the bank is a “Moderate Buy” with a target price of $39.60.

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

The Bank of N.T. Butterfield & Son Limited offers a variety of banking services including community, commercial, and private banking for both individuals and small to medium-sized businesses. Their services encompass retail and corporate checking, savings accounts, term deposits, and both interest-bearing and non-interest-bearing deposits. Lending services include residential mortgages, auto loans, consumer financing, credit cards, and various commercial lending options.

Banking, Investment, Dividends