Mutual of America Reduces Stake in First Bancorp by 11.6%

Mutual of America Capital Management LLC has reduced its stake in First Bancorp (NASDAQ:FBNC) by 11.6% during the second quarter of 2023. This decision was revealed in the company’s latest filing with the Securities and Exchange Commission (SEC). Following the sale of 700 shares, Mutual of America now holds 5,321 shares worth approximately $235,000.

This move is part of a broader trend, as other institutional investors and hedge funds have also altered their positions in First Bancorp. Notably, Quantbot Technologies LP acquired a new stake valued at around $25,000 in the first quarter, while Northwestern Mutual Wealth Management Co. significantly increased its holding by 1,412.9%, now owning 938 shares worth about $38,000 after purchasing an additional 876 shares. Similarly, GAMMA Investing LLC raised its stake by 33.5% during the second quarter, bringing its total to 1,895 shares valued at $84,000.

Other notable investments include ZWJ Investment Counsel Inc. and the Teacher Retirement System of Texas, which purchased stakes in First Bancorp valued at $236,000 and $243,000, respectively. Currently, institutional investors own approximately 68.36% of the company’s stock.

Analysts Adjust Price Targets for First Bancorp

Analyst opinions on First Bancorp have shifted recently, with various firms adjusting their price targets. Keefe, Bruyette & Woods raised their target from $53.00 to $62.00, maintaining an “outperform” rating as of September 2, 2023. Conversely, Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on September 29, 2023.

In addition, Weiss Ratings reiterated a “hold” rating, while Stephens increased their target from $53.00 to $57.00. Piper Sandler also raised its target from $48.00 to $51.00, assigning a “neutral” rating. Currently, two analysts rate the stock as a Buy, while four maintain a Hold rating, culminating in a consensus rating of “Hold” and an average target price of $56.67 according to MarketBeat.

First Bancorp’s Financial Performance

On October 22, 2023, First Bancorp announced its latest earnings results, reporting an earnings per share (EPS) of $1.01 for the quarter. This figure surpassed analysts’ consensus estimate of $0.93 by $0.08. The company’s return on equity stood at 9.61%, with a net margin of 17.50%. However, revenue for the quarter was $89.61 million, falling short of analysts’ expectations of $113.47 million.

Looking ahead, sell-side analysts project that First Bancorp will report an EPS of $3.27 for the current year. As for its stock performance, First Bancorp shares opened at $48.67 recently, having experienced a one-year low of $34.50 and a high of $56.45. The stock’s fifty-day moving average is $52.32, and its 200-day moving average is $47.00. The company holds a market capitalization of $2.02 billion, a P/E ratio of 20.45, and a beta of 1.01.

First Bancorp operates as the bank holding company for First Bank, providing a range of banking products and services to individuals as well as small to medium-sized businesses. The company offers various deposit products, including checking, savings, and money market accounts, along with time deposits such as certificates of deposit and individual retirement accounts.