Chris Davis Trims Stake in Bank of N.T Butterfield & Son Ltd
Overview of Chris Davis (Trades, Portfolio)'s Recent Transaction
In a notable move within the financial sector, Davis Advisors, under the stewardship of portfolio manager Chris Davis (Trades, Portfolio), has reduced its holdings in Bank of N.T Butterfield & Son Ltd (NYSE:NTB). The transaction, which took place on December 31, 2023, saw the firm decrease its position by 1,478,207 shares, resulting in a -0.3% trade impact on the portfolio. The shares were sold at a price of $32.01 each, leaving the firm with a total of 1,726,478 shares in NTB, which now represents 0.35% of the portfolio and 3.60% of the firm's holdings in the traded stock.
Chris Davis (Trades, Portfolio) and Davis Advisors
Davis Advisors is a prominent investment management firm overseeing more than $60 billion across various asset classes. Chris Davis (Trades, Portfolio), at the helm of the Davis Financial Fund, is known for a long-term investment horizon, typically holding stocks for four to seven years. The firm's investment philosophy centers on acquiring durable, well-managed businesses at value prices, with a particular emphasis on financial services companies. Davis Advisors' top holdings include Amazon.com Inc (NASDAQ:AMZN), Meta Platforms Inc (NASDAQ:META), Berkshire Hathaway Inc (NYSE:BRK.A), Capital One Financial Corp (NYSE:COF), and Wells Fargo & Co (NYSE:WFC), showcasing a diversified yet focused portfolio.
Bank of N.T Butterfield & Son Ltd at a Glance
Bank of N.T Butterfield & Son Ltd, headquartered in Bermuda, is a comprehensive bank and wealth manager that has been serving clients since its IPO on September 16, 2016. The company operates primarily in Bermuda and the Cayman Islands, offering a suite of banking and wealth management services. With a market capitalization of $1.45 billion, NTB has demonstrated financial resilience and consistent performance in its sector.
Detailed Look at the Transaction
The reduction in NTB shares by Chris Davis (Trades, Portfolio) was executed at a trade price of $32.01, with the post-transaction holdings amounting to 1,726,478 shares. This adjustment has slightly altered the firm's exposure to the financial services sector, with NTB now constituting a 0.35% position in the overall portfolio.
NTB's Stock Performance and Valuation
Currently, NTB's stock is trading at $30.08, which is below the trade price of $32.01 and represents a -6.03% price change since the transaction. The stock is also modestly undervalued according to the GF Value, with a current price to GF Value ratio of 0.77. NTB's GF Score stands at 69/100, indicating a potential for average performance in the future.
Financial Sector Focus and Market Context
Chris Davis (Trades, Portfolio)'s portfolio is heavily weighted towards the financial services sector, with top holdings reflecting this focus. NTB operates within the banking industry, which has seen varying degrees of performance. The firm's strategic positioning in NTB aligns with its investment philosophy and sector expertise.
Other Notable Investors in NTB
Apart from Chris Davis (Trades, Portfolio), other esteemed investors such as George Soros (Trades, Portfolio) and Keeley-Teton Advisors, LLC (Trades, Portfolio), have also taken an interest in NTB. The largest guru shareholder in NTB is Hotchkis & Wiley Capital Management LLC, although the exact share percentage is not disclosed.
Conclusion and Transaction Analysis
The recent reduction in NTB shares by Chris Davis (Trades, Portfolio) is a strategic move that aligns with the firm's investment philosophy and portfolio management approach. While the trade has a minor impact on the portfolio, it reflects the firm's ongoing assessment of NTB's valuation and future performance prospects. Value investors will be watching closely to see how this transaction influences the firm's financial sector strategy and overall portfolio returns.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
