American Century Increases Stake in ConnectOne Bancorp by 24.5%

American Century Companies Inc. has significantly increased its investment in ConnectOne Bancorp, Inc. (NASDAQ: CNOB) by purchasing an additional 193,692 shares during the second quarter of 2023. This acquisition raised its total holdings to 983,452 shares, representing a robust increase of 24.5%. According to a recent Form 13F filing with the Securities and Exchange Commission, American Century now holds 2.56% of ConnectOne Bancorp, valued at approximately $22.78 million.

This move is part of a broader trend, as several large investors have been adjusting their positions in ConnectOne Bancorp. For instance, HighTower Advisors LLC established a new stake valued at around $281,000 during the first quarter. Farther Finance Advisors LLC made a significant addition, boosting its position by 275.3% in the same quarter, resulting in ownership of 1,471 shares worth $34,000 after acquiring an additional 1,079 shares.

Market Performance and Financial Results

On October 30, 2023, ConnectOne Bancorp announced its quarterly earnings, reporting earnings per share (EPS) of $0.70. This figure surpassed analysts’ expectations of $0.68 by $0.02. The company achieved a net margin of 6.85% and a return on equity of 7.12%. The revenue for the quarter reached $110.78 million, slightly below the consensus estimate of $111.20 million.

Following these announcements, ConnectOne Bancorp’s stock experienced an increase of 2.3%, opening at $25.85. The company has a market capitalization of $1.30 billion, with a price-to-earnings (P/E) ratio of 29.71. Over the past year, the stock has fluctuated between a low of $20.61 and a high of $28.16.

Dividend Declaration and Insider Activity

In addition to its earnings report, ConnectOne Bancorp recently declared a quarterly dividend of $0.18 per share, which was paid on December 1, 2023. This equates to an annualized dividend of $0.72 and a yield of 2.8%. The ex-dividend date for this payment was November 14, 2023, and the company’s dividend payout ratio currently stands at 58.06%.

In a related development, Joseph T. Javitz, Executive Vice President, sold 1,700 shares of the company on September 3, 2023, for a total of $43,282 at an average price of $25.46. Following this transaction, Javitz retains ownership of 21,146 shares valued at approximately $538,377.16. Company insiders currently hold about 6.24% of the stock.

Analyst Ratings and Market Outlook

Recent analyst reports reflect a generally positive outlook for ConnectOne Bancorp. Weiss Ratings reaffirmed a “hold (c)” rating on October 8, 2023. Additionally, Piper Sandler initiated coverage on November 7, 2023, issuing an “overweight” rating with a target price of $28.00. Currently, three investment analysts rate the stock as a Buy, while one maintains a Hold rating, leading to a consensus rating of “Moderate Buy” and a target price of $29.50, according to MarketBeat.com.

ConnectOne Bancorp operates as the bank holding company for ConnectOne Bank, providing various commercial banking products and services primarily in the New York Metropolitan area and South Florida. Its offerings include personal and business checking accounts, credit cards, and online banking services, catering to small and mid-sized businesses as well as individual clients.

As the financial landscape evolves, ConnectOne Bancorp’s strategic maneuvers and investor interest may play a crucial role in shaping its future performance.