American Century Increases Stake in ConnectOne Bancorp by Over 24%

American Century Companies Inc. has significantly increased its investment in ConnectOne Bancorp, Inc. by purchasing an additional 193,692 shares during the second quarter of 2023. According to the most recent Form 13F filing with the Securities and Exchange Commission, this boost raised American Century’s stake by 24.5%, bringing its total holdings to 983,452 shares. As of the end of the quarter, these shares were valued at approximately $22.8 million, representing a 2.56% ownership in the financial services provider.

Several other institutional investors have also adjusted their positions in ConnectOne Bancorp recently. HighTower Advisors LLC entered the market during the first quarter, acquiring a new position valued at around $281,000. Meanwhile, Farther Finance Advisors LLC increased its stake by an impressive 275.3% during the second quarter, now owning 1,471 shares worth $34,000. Janney Montgomery Scott LLC and Boothbay Fund Management LLC also reported increases in their holdings, demonstrating strong institutional interest in the company. Currently, hedge funds and other institutional investors own approximately 67.7% of ConnectOne Bancorp’s stock.

Stock Performance and Financials

On October 30, 2023, ConnectOne Bancorp announced its quarterly earnings, reporting earnings per share (EPS) of $0.70. This figure surpassed analysts’ expectations, which estimated EPS at $0.68. The company recorded a revenue of $110.78 million for the quarter, slightly below the consensus estimate of $111.20 million. ConnectOne Bancorp’s return on equity stood at 7.12%, and it reported a net margin of 6.85%. Analysts forecast that the company will achieve an EPS of $2.23 for the current fiscal year.

Trading on NASDAQ under the symbol CNOB, ConnectOne Bancorp opened at $25.85 on Tuesday. The stock has shown a positive trend, rising by 2.3%. Its market capitalization is approximately $1.3 billion, with a price-to-earnings ratio of 29.71. Over the past year, the stock has fluctuated between a low of $20.61 and a high of $28.16. The company’s debt-to-equity ratio measures at 0.20, with both quick and current ratios at 0.97.

Dividend and Insider Activity

On December 1, 2023, ConnectOne Bancorp paid a quarterly dividend of $0.18 per share to investors on record as of November 14, 2023. This translates to an annualized dividend of $0.72, yielding 2.8%. The company’s dividend payout ratio currently stands at 58.06%, reflecting its commitment to returning value to shareholders.

In a related development, Joseph T. Javitz, Executive Vice President of ConnectOne Bancorp, sold 1,700 shares on September 3, 2023. The shares were sold for an average price of $25.46, yielding a total of $43,282. Following this transaction, Javitz retained ownership of 21,146 shares, valued at approximately $538,377. This sale represented a 7.44% decrease in his ownership stake.

Analyst Ratings and Future Outlook

Recent analyst reports have shown a mixed but generally positive outlook for ConnectOne Bancorp. Weiss Ratings reaffirmed a “hold” rating for the stock, while Piper Sandler initiated coverage with an “overweight” rating and set a target price of $28.00. Currently, three investment analysts have rated the stock as a “Buy,” while one has assigned a “Hold” rating. According to data from MarketBeat.com, the company holds a consensus rating of “Moderate Buy” with a target price of $29.50.

ConnectOne Bancorp operates as a bank holding company for ConnectOne Bank, offering a range of commercial banking products and services aimed at small to mid-sized businesses, local professionals, and individuals primarily in the New York Metropolitan area and South Florida. The company’s offerings include personal and business checking accounts, money market accounts, credit cards, and various banking services.

As ConnectOne Bancorp continues to expand its institutional investment and maintain solid financial performance, it appears poised for sustained growth in a competitive banking landscape.