Daily Stock Analysis: Northwest Bancshares Inc.

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Northwest Bancshares Inc. bears the ticker symbol NWBI, and this is my first mention of NWBI for this new Viking Portfolio. However, I have selected NWBI for one of my previous dog of the week folios.

Northwest Bancshares Inc. is a stockholding company for Northwest Bank. Northwest Bank is a stock savings bank and a community-oriented financial institution offering personal and banking business solutions, investment management, trust services, and insurance products.

It also offers consumer finance loans through a wholly-owned subsidiary. The bank's loan portfolio segment consists of personal banking and business banking loans. Personal banking includes residential mortgages, home equity loans, and other consumer loans. Business banking loans consist of commercial real estate loans and commercial loans. Net interest income is the company's primary contributor to revenue.

Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.

Three key data points gauge NWBI, or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

NWBI Price

Northwest Bancshares Inc's price per share was $13.72 at Tuesday’s market close. In the past year, NWBI share price fell by $0.43, or about 3%.

If NWBI stock trades in the range of $12.00 to $15.00 this next year, its recent $13.72 share price might reach $13.90 by next year. That upside estimate of $0.18 is equal to the median of one-year target estimates from five analysts tracking NWBI.
 

NWBI Dividends

Northwest Bancshares' most recent quarterly dividend of $0.20 casts a forward annual yield of 5.83%.
 

NWBI Returns

Adding the $0.80 annual estimated NWBI dividend to my one-year price upside estimate of $0.18 reveals a $0.98 potential gross gain estimate per share.

At Monday’s $13.72 closing price, a little over $1000 would buy 73 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.14 per share.

Subtracting that maybe $0.14 brokerage cost from my estimated $0.98 gross gain makes a net gain of $0.84 X 73 shares = $61.32 for a 6.13% net gain including the 5.8% annual dividend yield.

In the next year, our $1K investment in shares of Northwest Bancshares Inc should generate $58.30 in cash dividends. Furthermore, a single share of NWBI at Monday’s $13.72 price is over 4 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy Northwest Bancshares Inc shares, based on their dividends for 2023. The current dividend from $1K invested is 4.25 times higher than the NWBI single share price. Consider yourself alerted.

Now is the time to consider NWBI shares.

All of the estimates above are speculation based on the past history of investment in shares of Northwest Bancshares Inc Only time and money invested in this stock will determine its future market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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