Northwest Bancshares, Inc.
$13.80
-1.2%Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts. The company also offers investment management and trust services. As of December 31, 2021, it operated 170 community-banking locations in Pennsylvania, Western New York, Eastern Ohio, and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 14.8).
Valuation inputs: P/E 14.8, earnings yield +6.7%, momentum -1.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +6.7%, ROIC +4.5%).
Profitability stack: net margin +14.4%, ROE +6.7%, ROIC +4.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +88.7%, momentum -1.2%, net margin +14.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Northwest Bancshares, Inc. Market vs Earnings Trajectory
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Northwest Bancshares, Inc. Fair Value Envelope
Northwest Bancshares, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.
Northwest Bancshares, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Northwest Bancshares, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
Northwest Bancshares, Inc. Street Expectations Map
Wall Street analysts project that NWBI stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 14.67, with estimates ranging from a low of 13.00 to a high of 16.00.
The consensus 1-year price target stands at 14.67, with estimates ranging from a low of 13.00 to a high of 16.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Risk-Reward Profile
Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Northwest Bancshares, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.26M and sold $32K worth of NWBI shares, resulting in $2.23M of net buying activity.
3 Months
27.0K
370.59K
1.4K
18.87K
+352K
+$352K
3-6 Months
3.5K
43.65K
0
0.00
+44K
+$44K
6-9 Months
25.5K
313.10K
0
0.00
+313K
+$313K
9-12 Months
122.7K
1.53M
1.0K
12.70K
+1.5M
+$1.52M
Top Buyers
Grafmyre Richard A
Director
$1.38M
Hunter Timothy M
Director
$305K
Siegfried Erin Freund
Officer: Chief Legal Counsel /Corp Sec
$200K
Bowers Urich T
Officer: Chief Cons. Banking /Strat Off
$98K
Betchkal Gregory J.
Officer: Chief Risk Officer
$70K
Top Sellers
Barnum Carey A.
Officer: Chief Auditor
$19K
Canfield Joseph D Jr
Officer: Chief Accounting Officer
$13K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $2.23M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
5 insider buyers vs. 2 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
nwbi Dividend History
Learning Layer
Related Guides
Build conviction on NWBI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.