American Century Increases Stake in ConnectOne Bancorp by 24.5%

American Century Companies Inc. has increased its investment in ConnectOne Bancorp, Inc. by 24.5% during the second quarter of 2023. According to a recent Form 13F filing with the Securities and Exchange Commission (SEC), the investment firm now holds 983,452 shares of the financial services provider, following the acquisition of an additional 193,692 shares within the period. This increase brings American Century’s total stake in ConnectOne Bancorp to approximately $22.8 million, representing 2.56% of the company.

Several other institutional investors have also adjusted their positions in ConnectOne Bancorp (NASDAQ: CNOB). HighTower Advisors LLC, for instance, entered the market with a new position valued at around $281,000 in the first quarter. Meanwhile, Farther Finance Advisors LLC significantly increased its holdings by 275.3% during the same quarter, now owning 1,471 shares valued at approximately $34,000 after acquiring an additional 1,079 shares.

In another move, Janney Montgomery Scott LLC raised its stake by 13.8% during the second quarter, owning 52,267 shares worth $1.2 million after purchasing an extra 6,343 shares. Additionally, PharVision Advisers LLC made a new investment in the first quarter valued at about $277,000, while Boothbay Fund Management LLC boosted its holdings by 48.9%, now owning 429,393 shares valued at approximately $10.4 million. Currently, institutional investors control 67.70% of ConnectOne Bancorp’s stock.

Trading Performance and Financial Metrics

On Tuesday, ConnectOne Bancorp shares opened at $25.85, reflecting a 2.3% increase. The company’s stock has shown solid performance, with a 50-day simple moving average of $24.61 and a 200-day average of $24.22. ConnectOne Bancorp has a market capitalization of approximately $1.30 billion and a price-to-earnings (P/E) ratio of 29.71. Over the past year, shares have fluctuated between a low of $20.61 and a high of $28.16.

The financial institution’s recent earnings report, announced on October 30, 2023, indicated a robust performance. The company recorded earnings per share (EPS) of $0.70, surpassing analysts’ expectations of $0.68. ConnectOne Bancorp reported a return on equity of 7.12% and a net margin of 6.85%, with revenue totaling $110.78 million, slightly below the consensus estimate of $111.20 million. Analysts predict that for the current fiscal year, the company will achieve an EPS of $2.23.

Dividend and Insider Activities

In addition to its stock performance, ConnectOne Bancorp recently declared a quarterly dividend of $0.18 per share, paid on December 1, 2023, to shareholders of record as of November 14, 2023. This dividend represents an annual payout of $0.72, yielding 2.8%. The company’s dividend payout ratio stands at 58.06%, indicating a balanced approach to returning value to shareholders while maintaining financial health.

In related insider activities, Joseph T. Javitz, Executive Vice President, sold 1,700 shares on September 3, 2023, at an average price of $25.46, totaling $43,282. Following this transaction, Javitz retains 21,146 shares valued at approximately $538,377. Insider ownership currently accounts for 6.24% of the company’s stock.

Analysts have recently issued mixed ratings for ConnectOne Bancorp shares. Weiss Ratings maintained a “hold (c)” rating, while Piper Sandler began coverage with an “overweight” rating and a target price of $28.00. Currently, three investment analysts have given a Buy rating, while one has assigned a Hold rating, leading to a consensus rating of “Moderate Buy” and a target price of $29.50.

ConnectOne Bancorp operates primarily as the bank holding company for ConnectOne Bank, offering commercial banking products and services to small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and South Florida. The company provides an array of financial services, including personal and business checking accounts, credit cards, and online banking services.