ConnectOne Bancorp (CNOB) | News Based Sentiment Analysis

• On September 23rd, institutional investor Strs Ohio took a new position in ConnectOne Bancorp, purchasing 25,700 shares valued at approximately $625,000, signaling continued institutional confidence despite recent market fluctuations. This move increased institutional ownership to 67.70% of the company's stock.
• ConnectOne Bancorp's stock experienced a slight dip on September 23rd, trading down $0.26 to $25.31, with a trading volume of 74,751 shares – lower than its average of 249,843 shares. Despite this, the company maintains a market capitalization of $1.27 billion and a P/E ratio of 29.09.
• Over the past week, ConnectOne Bancorp's stock declined by 4.2%, even though it has risen 75% over the last five years (including dividends, which outperformed the market) and 3.4% in the last year. However, the company's earnings per share have decreased by 18% annually over the same five-year period, while revenue grew at a compound rate of 2.2%.
• A valuation analysis from September 22nd highlighted ConnectOne's consistent dividend increases, averaging 17% annually over the last five years, with a current yield exceeding industry and S&P 500 averages. Analysts anticipate robust earnings growth in 2026, and the stock is considered 11% undervalued with a fair value of $29.12.
• Institutional investor activity was mixed during the week of September 22nd. Voya Investment Management LLC reduced its stake by 14.3%, selling 33,330 shares, while Quarry LP, GAMMA Investing LLC, Efficient Advisors LLC, and EP Wealth Advisors LLC all initiated or increased their positions. Collectively, institutional investors and hedge funds control 67.70% of the company’s stock.
• Insider buying activity provided a positive signal, with Director Susan C. O'donnell purchasing 2,691 shares for $60,000 on August 1st, 2025, and Director Stephen T. Boswell buying 7,700 shares for $171,232 on the same date. This represents 11.2% of the weighted holdings in the WisdomTree U.S. SmallCap Quality Dividend Growth Fund.
• As of September 26th, Morningstar assessed ConnectOne Bancorp's fair value at $25.26, aligning with the stock price of $25.26. Key statistics include a market capitalization of $1.27 billion, a normalized P/E ratio of 12.20, a Price/Sales ratio of 3.45, and a dividend yield of 2.85%.

The Investment Story: September presented a mixed picture for ConnectOne Bancorp, with institutional investment balanced against insider selling and a recent stock decline. Despite short-term fluctuations, the company's long-term dividend growth and potential undervaluation remain attractive.

What It Means for Investors: The mixed institutional activity and earnings decline warrant caution, but the consistent dividend increases, positive analyst outlook for 2026, and insider buying suggest underlying strength. Investors should monitor commercial real estate exposure and merger integration risks.

Looking Ahead: Investors should closely watch ConnectOne's performance in the commercial real estate sector, track the progress of any recent mergers, and observe future insider trading activity to gauge management confidence. Monitoring the 2026 earnings growth anticipated by analysts will also be crucial.

The Bottom Line: ConnectOne Bancorp remains a compelling, albeit nuanced, investment opportunity. The company's strong dividend history and potential undervaluation are appealing, but investors must carefully weigh the risks associated with its commercial real estate exposure and recent insider activity.