Stephen Scouten, an analyst from Piper Sandler, has initiated a new Hold rating on First Bancorp (FBNC).
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Stephen Scouten has given his Hold rating due to a combination of factors that influence First Bancorp’s current market position. The bank shows promising long-term potential, particularly with its ability to expand net interest margin (NIM) even in a down-rate environment, consistent credit performance, and scalable organic growth. Additionally, the management’s focus on organic production and operating leverage positions the bank well for sustained returns and shareholder value growth.
However, the stock is currently trading at a premium price-to-earnings (P/E) ratio, which limits the potential for further multiple expansion compared to its peers. This valuation concern, along with the risks of interest rate fluctuations and broader economic slowdowns, contributes to the Hold rating. Despite these challenges, the bank’s strategic initiatives and strong management team provide a solid foundation for future growth, justifying the neutral stance.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FBNC in relation to earlier this year.