Bank of N.T. Butterfield & Son (NYSE:NTB) Authorizes Stock Buyback Plan

Bank of N.T. Butterfield & Son (NYSE:NTB) announced that its Board of Directors has initiated a stock buyback program on Monday, December 8th, RTT News reports. The company plans to buyback $140.00 million in shares. This buyback authorization permits the bank to purchase up to 6% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its shares are undervalued.

Bank of N.T. Butterfield & Son Price Performance

Shares of NTB opened at $48.96 on Tuesday. The company has a market capitalization of $2.33 billion, a PE ratio of 9.27 and a beta of 0.57. Bank of N.T. Butterfield & Son has a one year low of $34.77 and a one year high of $49.49. The company’s fifty day moving average price is $44.53 and its 200 day moving average price is $44.50.

Bank of N.T. Butterfield & Son (NYSE:NTB) last issued its quarterly earnings results on Tuesday, October 28th. The bank reported $1.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.21. The company had revenue of $153.30 million for the quarter, compared to the consensus estimate of $147.92 million. Bank of N.T. Butterfield & Son had a return on equity of 21.94% and a net margin of 28.27%.The firm’s revenue was up 7.4% compared to the same quarter last year. During the same period last year, the business posted $1.16 earnings per share. Analysts anticipate that Bank of N.T. Butterfield & Son will post 4.4 earnings per share for the current year.

Bank of N.T. Butterfield & Son Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, November 25th. Shareholders of record on Tuesday, November 11th were given a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Monday, November 10th. Bank of N.T. Butterfield & Son’s payout ratio is currently 37.88%.

Analysts Set New Price Targets

NTB has been the topic of a number of recent research reports. Zacks Research upgraded Bank of N.T. Butterfield & Son from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 7th. Weiss Ratings reiterated a “buy (b)” rating on shares of Bank of N.T. Butterfield & Son in a report on Wednesday, October 8th. Wells Fargo & Company restated an “equal weight” rating and set a $50.00 target price (down from $54.00) on shares of Bank of N.T. Butterfield & Son in a report on Monday, September 29th. Finally, Keefe, Bruyette & Woods boosted their price target on Bank of N.T. Butterfield & Son from $50.00 to $52.00 and gave the stock a “market perform” rating in a research report on Thursday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Bank of N.T. Butterfield & Son presently has an average rating of “Moderate Buy” and a consensus target price of $50.67.

About Bank of N.T. Butterfield & Son

The Bank of N.T. Butterfield & Son Ltd. provides community banking and wealth management business. The firm operates through the following geographical segments: Bermuda, the Cayman Islands, Channel Islands and the UK, and Other. The Bermuda and Cayman segments offer retail banking and wealth management.