Northeast Bancorp (NASDAQ:NBN) Sees Large Volume Increase on Better-Than-Expected Earnings

Shares of Northeast Bancorp (NASDAQ:NBN) saw strong trading volume on Tuesday following a better than expected earnings announcement. Approximately 204,524 shares were traded during trading, an increase of 71% from the average daily volume of 119,473 shares. The stock last traded at $130.0730 and had previously closed at $131.32.

The financial services provider reported $3.42 EPS for the quarter, beating the consensus estimate of $3.41 by $0.01. The company had revenue of $64.27 million during the quarter, compared to analysts’ expectations of $66.77 million. Northeast Bancorp had a net margin of 27.91% and a return on equity of 19.35%.

Northeast Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Monday, November 9th will be issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.0%. The ex-dividend date of this dividend is Monday, November 9th. Northeast Bancorp’s payout ratio is presently 0.31%.

Northeast Bancorp News Roundup

Here are the key news stories impacting Northeast Bancorp this week:

• Positive Sentiment: Net income increased to $29.0 million, or $3.42 per diluted share, from $22.5 million, or $2.67 per share, in the year-ago quarter. EPS narrowly exceeded the $3.41 consensus estimate. Northeast Bank Reports First Quarter Results and Declares Dividend
• Positive Sentiment: The bank reported a strong 27.91% net margin and 19.35% return on equity, indicating continued profitability and efficient use of shareholder capital. Northeast Bank Fiscal Q1 Earnings, Revenue Rise
• Neutral Sentiment: Northeast Bancorp declared a quarterly dividend of $0.01 per share, payable November 23 to shareholders of record November 9. The $0.04 annualized payout produces an approximately 0.0% yield, so the dividend is unlikely to be a major driver for income-focused investors.
• Neutral Sentiment: Reported short interest was zero shares, implying no meaningful short-selling pressure or days-to-cover risk. However, the unusual figure may reflect a reporting-data issue rather than a significant change in investor positioning.
• Negative Sentiment: Quarterly revenue of $64.27 million came in below the $66.77 million analyst consensus, partially offsetting the EPS beat and potentially raising questions about the pace of top-line growth. Northeast Bank Earnings Flash

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Weiss Ratings reiterated a “buy (b)” rating on shares of Northeast Bancorp in a research note on Friday, July 31st. Keefe, Bruyette & Woods upped their target price on shares of Northeast Bancorp from $128.00 to $136.00 and gave the company a “market perform” rating in a report on Tuesday, July 28th. Finally, Piper Sandler increased their price objective on Northeast Bancorp from $145.00 to $151.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $143.50.

Institutional Investors Weigh In On Northeast Bancorp

A number of institutional investors have recently bought and sold shares of the stock. Sterling Capital Management LLC lifted its position in Northeast Bancorp by 6.4% during the third quarter. Sterling Capital Management LLC now owns 2,346 shares of the financial services provider’s stock valued at $290,000 after buying an additional 142 shares in the last quarter. Nisa Investment Advisors LLC boosted its holdings in Northeast Bancorp by 160.7% in the third quarter. Nisa Investment Advisors LLC now owns 743 shares of the financial services provider’s stock valued at $92,000 after purchasing an additional 458 shares during the last quarter. Hingham Institution for Savings grew its position in shares of Northeast Bancorp by 75.0% during the third quarter. Hingham Institution for Savings now owns 21,000 shares of the financial services provider’s stock worth $2,597,000 after buying an additional 9,000 shares in the last quarter. Fortitude Family Office LLC increased its position in shares of Northeast Bancorp by 368.1% in the 3rd quarter. Fortitude Family Office LLC now owns 323 shares of the financial services provider’s stock worth $40,000 after purchasing an additional 254 shares during the last quarter. Finally, Engineers Gate Manager LP acquired a new stake in Northeast Bancorp during the second quarter valued at approximately $1,109,000.

Northeast Bancorp Price Performance

The company has a 50 day moving average of $128.86 and a 200-day moving average of $123.13. The company has a quick ratio of 1.32, a current ratio of 1.35 and a debt-to-equity ratio of 1.42. The stock has a market capitalization of $1.07 billion, a P/E ratio of 10.26 and a beta of 0.60.

About Northeast Bancorp

Northeast Bancorp is the bank holding company for Northeast Bank, a community-focused financial institution headquartered in Lewiston, Maine. Founded in 1872, Northeast Bank provides banking and lending services to individuals, families, businesses and nonprofit organizations.

The bank offers deposit products such as checking, savings and money market accounts, certificates of deposit and business deposit services. Its lending activities include commercial real estate, commercial and industrial, residential real estate, consumer and municipal loans, as well as construction and other business financing.