Is NCB’s stock finally on the rebound?

The stock price for NCB Financial Group has taken some big swings over the last few years, but it seems like the tide is finally starting to change. 

For some context, back in July, NCB stock had its worst month since 2013, dropping 26%. But then it rebounded in August, having its best month in over a decade, wiping out most of those losses and adding gains on top. So far, September has also seen steady improvement, with the stock up about 9%. 

“So, year to date, the stock is still down, still negative year to date. However, it’s way better than it was at the lows of the year. At the lows of the year the stock was down over 40%. Then earnings came out about August 8 and that’s when that sharp move happened.”

That was Corporate Manager at JMMB, Leovaungni Dillon, speaking recently on Taking Stock. So the company’s Q3 results showed that profits were up 11% in the quarter and nearly 60% for the nine-month period ended June 30. 

Leo pointed out that the performance would have surprised a lot of investors in a good way. So that report helped calm some fears in the market and gave investors new confidence in the bank’s performance. 

The big question now is “can this rebound last?”. Well, the sustainability of the stock price depends on the continued success of that company. So, the real question is: is this Q3 result something that NCBFG can do again? Because part of that boost in their numbers came from a one-off sale of assets. And it’s not like they can continue to sell assets forever to make money.

But according to Leo, as long as NCB keeps its profits growing at a steady pace, controls costs, and keeps paying dividends, the stock is likely to continue doing well. 

And that’s the bottom line.