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

State Street Corp has decreased its stake in The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) by 1.2% during the third quarter, based on the latest Form 13F filing with the SEC. This reduction means that the company now holds 815,775 shares after selling 9,804 shares during the quarter. As of this most recent filing, State Street’s holdings in the bank are valued at approximately $30,086,000.

A number of institutional investors and hedge funds have also adjusted their positions in the bank recently. For instance, Bank of New York Mellon Corp raised its stake in The Bank of N.T. Butterfield & Son by 2.9% in the second quarter, owning 173,041 shares worth about $5,883,000 after purchasing an additional 4,881 shares. Similarly, Principal Financial Group Inc. increased its stake by 14.1%, currently holding 28,946 shares valued at $1,017,000, following an acquisition of 3,574 additional shares. Commonwealth Equity Services LLC has initiated a new position valued at approximately $855,000, while Victory Capital Management Inc. raised its holdings in the bank by 45.6%, now owning 381,876 shares worth $13,411,000 after a purchase of 119,572 shares. Furthermore, Hahn Capital Management LLC boosted its stake by 20.2%, presently owning 89,826 shares valued at $3,155,000.

Bank of N.T. Butterfield & Son Stock Performance

On Friday, shares of NYSE NTB opened at $36.51. Over the last year, the bank’s stock has reached a low of $28.73 and a high of $40.55. The stock’s 50-day moving average stands at $37.68, while the two-hundred-day moving average is recorded at $36.79. The market capitalization of The Bank of N.T. Butterfield & Son is $1.83 billion, with a price-to-earnings (PE) ratio of 8.13 and a beta of 1.17. The current ratio and quick ratio are both at 0.66, and the debt-to-equity ratio is 0.09.

Recently, on October 22nd, The Bank of N.T. Butterfield & Son disclosed its earnings results for the latest quarter. The bank reported earnings of $1.16 per share, surpassing the consensus estimate of $1.10 by $0.06. The return on equity was noted at 21.14%, with a net margin of 25.93%. The revenue for the quarter was reported at $142.70 million, which slightly exceeded analysts' anticipated revenue of $142.07 million. Compared to the same period last year, the earnings remain constant at $1.16 per share, with a minor year-over-year revenue growth of 0.7%. Analysts predict that the bank will achieve earnings per share of 4.52 in the current fiscal year.

Dividend Announcement

The bank has also recently declared a quarterly dividend, which was distributed on November 19th. Shareholders on record as of November 5th received a dividend of $0.44 per share. The ex-dividend date was the same day. This dividend represents an annual payout of $1.76, yielding around 4.82%. The current payout ratio of The Bank of N.T. Butterfield & Son is about 39.20%.

Analysts’ Ratings and Future Outlook

In another notable development, Keefe, Bruyette & Woods downgraded their rating of The Bank of N.T. Butterfield & Son’s shares from “outperform” to “market perform,” while reducing the target price from $44.00 to $41.00 in a recent report released on October 2nd. Currently, one analyst has assigned a hold rating, while four others have given the stock a buy rating. According to MarketBeat data, The Bank of N.T. Butterfield & Son holds a consensus rating of “Moderate Buy,” with a consensus price target of $39.60.

About The Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Limited offers a variety of banking services to individuals and small to medium-sized businesses. Its services include retail and corporate checking, savings, term deposits, and various lending products such as residential mortgages, automobile lending, consumer financing, credit cards, and commercial loans.

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