Taking Another Look at Butterfield (NYSE:NTB) Valuation After Its New $140 Million Share Buyback Plan

The Bank of N.T. Butterfield & Son (NYSE:NTB) just rolled out a fresh buyback plan, authorizing up to 3 million shares for 140 million dollars through 2026, which may be interpreted as a signal of management's confidence.

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

The new buyback comes after a strong run, with the share price up around 41 percent year to date and a robust 3 year total shareholder return of about 100 percent, suggesting momentum is still very much on the bank's side.

If this buyback has you thinking more broadly about financials, it could be a good moment to scan for fast growing stocks with high insider ownership as potential next ideas.

But with the stock hovering near analyst targets after a powerful multi year run, is Butterfield still trading below its intrinsic value, or has the market already priced in the bulk of its future growth?

Most Popular Narrative Narrative: 50% Undervalued

With Bank of N.T. Butterfield & Son last closing at 51.22 dollars, the most followed narrative suggests fair value sits meaningfully higher, implying a sizable upside if its long range assumptions play out.

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 headline growth, shifting margins, and a higher future earnings multiple could still justify a richer valuation? The narrative spells out the full playbook in numbers you have not seen yet.

Result: Fair Value of $51.5 (UNDERVALUED)

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

However, the narrative could unravel if non sticky deposits exit quickly or island economies weaken, which would pressure loan quality, margins, and earnings resilience.

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 are not fully sold on this view, or would rather dig into the numbers yourself, you can shape a custom narrative 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.

Ready for your next investing move?

Do not stop at one compelling opportunity. Use the Simply Wall St screener to uncover focused ideas that could sharpen your portfolio and boost future returns.

• Capture potential mispricings by targeting companies trading below their estimated worth with these 914 undervalued stocks based on cash flows that could offer attractive upside if sentiment shifts.
• Ride the structural boom in automation and machine intelligence by zeroing in on these 25 AI penny stocks that may benefit as adoption accelerates across industries.
• Strengthen your income stream by scanning these 13 dividend stocks with yields > 3% that combine solid yields with the potential for long term capital growth.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com