2024-06-28 16:17:01 ET
Summary
- The First of Long Island (FLIC) has faced significant challenges due to the rapid rise in the Fed Funds Rate, leading to a sharp drop in stock price.
- Despite the decline in profitability and stagnant TBV per share, FLIC remains solid with historic low valuation multiples and a high dividend yield of 8.58%.
- Management expects a bottom in the net interest margin and potential growth with a reduction in the Fed Funds Rate, making FLIC a buy at its current price below $10 per share.
The First of Long Island ( FLIC ) is a bank with nearly 100 years of history and is headquartered in Melville, New York. Its recent history has been marked by significant challenges mainly due to the rapid rise in the Fed Funds Rate. In fact, in early 2022 FLIC was trading at about $22 per share; today we are below $10 per share.
This is a huge drop, which occurred among other things at a time when FLIC was already far from its all-time high of $31 per share at the end of 2017. Certainly, the TBV per share has stalled in recent years, but the bank remains solid in spite of everything. Its valuation multiples are at historic lows and the dividend yield has never been higher, 8.58%....
Read the full article on Seeking Alpha
For further details see:
The First Of Long Island: Ready To Bounce Back And With A Huge Dividend Yield (Rating Upgrade)