Assessing Butterfield (NYSE:NTB) Valuation After Share Buybacks and Wells Fargo Downgrade

Bank of N.T. Butterfield & Son (NYSE:NTB) is in the spotlight after management ramped up share buybacks while Wells Fargo cut its rating, highlighting a tension between internal confidence and macro driven caution.

See our latest analysis for Bank of N.T. Butterfield & Son.

Those buybacks, alongside the recent Wells Fargo downgrade, come after a strong run. The share price is at $48.28 with a robust year to date share price return of 32.82 percent and a 1 year total shareholder return of 34.46 percent, suggesting momentum is still building rather than fading.

If this kind of bank driven rerating has your attention, it could be a good moment to explore other financial names and discover fast growing stocks with high insider ownership

With buybacks accelerating, a modest discount to analyst targets, and rate cut worries lingering, is Butterfield still trading below its intrinsic value, or are investors already paying up for the bank’s next leg of growth?

Most Popular Narrative Narrative: 6.3% Undervalued

Compared to Bank of N.T. Butterfield & Son's last close at $48.28, the most followed narrative sees modest upside based on a slightly higher fair value.

Strategic M&A focus, especially in fee generating trust and wealth businesses, is set to enhance revenue diversification and increase fee based income, leading to more stable long term earnings and reduced reliance on net interest margins.

Read the complete narrative.

Want to see how flat revenues, shifting margins, and shrinking share count still add up to upside potential? Discover the precise earnings path behind this valuation.

Result: Fair Value of $51.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concentrated island economies and potentially non sticky deposits mean that local shocks or sudden outflows could quickly undermine the current undervaluation case.

Find out about the key risks to this Bank of N.T. Butterfield & Son narrative.

Build Your Own Bank of N.T. Butterfield & Son Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a tailored view of Butterfield in just a few minutes: Do it your way

A great starting point for your Bank of N.T. Butterfield & Son research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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