In a recent transaction, David Fasanella, the Executive Vice President (EVP) of Northfield Bancorp, Inc. (NASDAQ:NFBK), purchased shares of the company's common stock. On June 13, 2024, Fasanella acquired 1,000 shares at a price of $7.79 per share, totaling an investment of $7,790.
This acquisition was made as part of a non-derivative transaction, and following this purchase, Fasanella's directly owned shares in Northfield Bancorp increased to 4,000 within his Roth IRA. This transaction indicates a bolstering of the EVP's stake in the company, reflecting a vote of confidence in the firm's future prospects.
It's worth noting that in addition to the shares acquired, Fasanella holds a substantial number of shares indirectly. The SEC filing reveals that Fasanella has indirect ownership in various forms, including holdings in a 401(k) and an Employee Stock Ownership Plan (ESOP), though specifics of transactions within these accounts were not required to be reported.
Investors often monitor insider transactions such as these for insights into executive sentiment regarding their company's stock. While Fasanella's recent purchase is not the sole indicator of the company's performance or potential, it is one piece of data that shareholders may consider when evaluating their investment in Northfield Bancorp.
The transaction was formally filed with the SEC and the details can be accessed through their public records. The EVP's purchase is now part of his disclosed ownership in the company, and Northfield Bancorp's stock continues to be traded on the NASDAQ under the symbol NFBK.
In other recent news, Northfield Bancorp has announced its first-quarter earnings for 2024, reporting earnings per share (EPS) of $0.15, which aligns with the consensus estimate. However, Piper Sandler, the analyst firm, noted this fell short of its expectations by a cent. The reported earnings also revealed that Northfield Bancorp's expenses exceeded projections by $0.02, while net interest income was a penny below expectations.
On the other hand, these higher expenses were partially offset by a reduction in provisioning for the quarter. The bank's financial performance was further marked by the completion of its previous share repurchase program, with 253,000 shares bought back.
In a significant development, Northfield Bancorp has unveiled a new share repurchase authorization of $5 million, equivalent to approximately 1.3% of the company's outstanding shares. Following these recent developments, Piper Sandler has adjusted its outlook on Northfield Bancorp shares, reducing the price target to $11.00 from the previous $13.00, while maintaining a Neutral rating on the stock. The new price target reflects Piper Sandler's current valuation of the bank's stock based on its quarterly performance and ongoing strategies.
InvestingPro Insights
Following the Executive Vice President's recent share acquisition, Northfield Bancorp, Inc. (NASDAQ:NFBK) shows a mixed financial landscape. According to InvestingPro data, the company has a market capitalization of $345 million and a P/E ratio that stands at 10.33, reflecting a valuation that may appeal to value-oriented investors. Notably, the stock's Price/Book ratio for the last twelve months as of Q1 2024 is 0.49, which could indicate that the shares are undervalued relative to the company's net asset value.
Despite recent insider buying, InvestingPro Tips suggest caution as two analysts have revised their earnings estimates downwards for the upcoming period. Additionally, the company has experienced a significant revenue decline of 20.06% over the last twelve months as of Q1 2024. This may raise concerns about the company's growth trajectory in the near term.
However, Northfield Bancorp has maintained dividend payments for 17 consecutive years, with a robust dividend yield of 6.51% as of the latest data, which may be attractive to income-focused investors. It's also worth noting that the company has been aggressively buying back shares, a move that can signal management's belief in the company's value and potentially support the stock price.
For investors seeking a deeper dive into Northfield Bancorp's financials and future outlook, there are additional InvestingPro Tips available on their platform. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights.
The company's next earnings date is set for July 24, 2024, which will provide further clarity on its financial health and performance. With the stock having taken a significant hit over the last six months, showing a price total return of -33.18%, investors will be closely watching the upcoming earnings report and any further insider transactions for signs of a turnaround or continued challenges.
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