Fintel reports that on July 31, 2023, Raymond James downgraded their outlook for First Bancorp (NASDAQ:FBNC) from Outperform to Market Perform.

Analyst Price Forecast Suggests 18.78% Upside

As of July 6, 2023, the average one-year price target for First Bancorp is 40.80. The forecasts range from a low of 34.09 to a high of $53.81. The average price target represents an increase of 18.78% from its latest reported closing price of 34.35.

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The projected annual revenue for First Bancorp is 487MM, an increase of 29.48%. The projected annual non-GAAP EPS is 4.45.

First Bancorp Declares $0.22 Dividend

On June 15, 2023 the company declared a regular quarterly dividend of $0.22 per share ($0.88 annualized). Shareholders of record as of June 30, 2023 received the payment on July 25, 2023. Previously, the company paid $0.22 per share.

At the current share price of $34.35 / share, the stock’s dividend yield is 2.56%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.00%, the lowest has been 0.94%, and the highest has been 3.56%. The standard deviation of yields is 0.66 (n=236).

The current dividend yield is 0.84 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.30. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 468 funds or institutions reporting positions in First Bancorp. This is a decrease of 10 owner(s) or 2.09% in the last quarter. Average portfolio weight of all funds dedicated to FBNC is 0.13%, a decrease of 14.60%. Total shares owned by institutions increased in the last three months by 10.79% to 34,363K shares. The put/call ratio of FBNC is 0.22, indicating a bullish outlook.

What are Other Shareholders Doing?

IJR – iShares Core S&P Small-Cap ETF holds 2,864K shares representing 6.99% ownership of the company. In it’s prior filing, the firm reported owning 2,468K shares, representing an increase of 13.82%. The firm decreased its portfolio allocation in FBNC by 6.52% over the last quarter.

Westwood Holdings Group holds 1,590K shares representing 3.88% ownership of the company. In it’s prior filing, the firm reported owning 675K shares, representing an increase of 57.58%. The firm increased its portfolio allocation in FBNC by 99.73% over the last quarter.

Macquarie Group holds 1,296K shares representing 3.16% ownership of the company. In it’s prior filing, the firm reported owning 1,307K shares, representing a decrease of 0.88%. The firm decreased its portfolio allocation in FBNC by 31.72% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 1,227K shares representing 2.99% ownership of the company. In it’s prior filing, the firm reported owning 1,111K shares, representing an increase of 9.48%. The firm decreased its portfolio allocation in FBNC by 15.42% over the last quarter.

DCCAX – Delaware Small Cap Core Fund holds 1,084K shares representing 2.64% ownership of the company. In it’s prior filing, the firm reported owning 1,090K shares, representing a decrease of 0.57%. The firm decreased its portfolio allocation in FBNC by 20.12% over the last quarter.

First Bancorp Background Information
(This description is provided by the company.)

First Bank is the banking subsidiary of First Bancorp and is headquartered in Southern Pines, North Carolina, with total assets of approximately $7.1 billion. As a state-chartered community bank, First Bank operates 101 bank branches in North Carolina and South Carolina. Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business.

This article originally appeared on Fintel

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