Northfield Bancorp, Inc. (NASDAQ:NFBK) Director John P. Connors Jr. has recently increased his stake in the company, purchasing 6,500 shares of common stock at an average price of $7.5224, totaling approximately $48,895. The transaction was executed on June 11, as reported in a recent filing with the Securities and Exchange Commission.
The shares were bought at prices ranging from $7.46 to $7.55, reflecting a weighted average purchase price detailed in the filing. Following this transaction, Connors now directly holds 163,938 shares of Northfield Bancorp's common stock. Additionally, indirect holdings through individual retirement accounts (IRAs) and a spouse's IRA account for 33,181, 7,041, and 841 shares respectively.
This move by a member of the company's board signifies a bolstering of his investment in Northfield Bancorp, a federally chartered savings institution. Investors often keep an eye on the buying and selling activities of company insiders for insights into their perspective on the company's current valuation and future prospects.
Northfield Bancorp's stock options are also part of Connors' portfolio, with 32,000 shares underlying stock options exercisable at $14.76 per share, set to expire in May 2025. These derivative securities are a long-term component of Connors’ investment in the company, separate from the recent stock purchase.
As customary, the filing also includes an offer by Connors to provide detailed information regarding the number of shares bought at each price point within the range to Northfield Bancorp, its security holders, or the SEC staff upon request.
Investors and market watchers often scrutinize such filings for indications of executives' confidence in their firms. Connors' recent acquisition of additional shares in Northfield Bancorp may be seen as a positive signal regarding the company's financial health and future performance.
In other recent news, Northfield Bancorp's first quarter earnings for 2024 have been released, with the company reporting an earnings per share (EPS) of $0.15. This figure, identified as the core EPS by Piper Sandler, matched the consensus estimate but was a cent lower than Piper Sandler's forecast. The earnings report also indicated that Northfield Bancorp's expenses were $0.02 higher than expected, while the net interest income was a penny below projections.
Following the earnings announcement, Piper Sandler adjusted its outlook on Northfield Bancorp shares, reducing the price target from $13.00 to $11.00, while maintaining a Neutral rating. This revision reflects the analysis of Northfield Bancorp's quarterly performance and ongoing strategies, including share repurchases.
In related developments, Northfield Bancorp completed its previous share repurchase program, buying back 253,000 shares at an average cost of $12.17 per share. Alongside this, the company announced a new share repurchase authorization of $5 million, which at current share prices, is equivalent to approximately 1.3% of the company's outstanding shares. These are recent developments that form a significant part of Northfield Bancorp's first-quarter financial activities.
InvestingPro Insights
In light of the recent insider stock purchase by Northfield Bancorp, Inc. (NASDAQ:NFBK) Director John P. Connors Jr., it's insightful to consider some key metrics and InvestingPro Tips that could offer a broader perspective on the company's financial landscape. According to the latest data from InvestingPro, Northfield Bancorp has an adjusted market capitalization of $356.53 million and a price-to-earnings (P/E) ratio of 10.73, which marginally increased to 10.98 when looking at the last twelve months as of Q1 2024. This suggests a relatively modest valuation in the market.
Despite recent challenges, as indicated by a -20.06% revenue decline over the last twelve months as of Q1 2024, the company has maintained a strong operating income margin of 36.02% during the same period. Moreover, Northfield Bancorp has shown a commitment to shareholder returns, boasting a significant dividend yield of 6.82% as of the latest dividend ex-date on May 7, 2024. This is in line with the company's history of maintaining dividend payments for 17 consecutive years, as highlighted in one of the InvestingPro Tips.
Investors should note, however, that the company's stock has experienced a downturn, with a one-week price total return of -8.41% and a one-month price total return of -19.02% as of the latest data. This recent performance may correlate with the management's aggressive share buyback strategy, another insight from the InvestingPro Tips. While the fair value estimates from analysts and InvestingPro are both set at around $9.50, suggesting potential undervaluation, the recent downward revisions in earnings by analysts should be taken into account.
For those looking to delve deeper into the company's prospects, there are additional InvestingPro Tips available, including insights on gross profit margins and net income expectations. With a total of 12 tips available, interested parties can explore more comprehensive analysis on Northfield Bancorp. As a special offer, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, which includes these valuable tips and more.
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