Janney Montgomery Scott Downgrades NBT Bancorp (NBTB) to Neutral
Janney Montgomery Scott has downgraded NBT Bancorp Inc. (NASDAQ: NBTB) from a “Buy” rating to a “Neutral” rating, according to a research report issued to clients and investors. The downgrade comes as the regional bank’s stock has been trading near its recent highs, crossing above its 200-day moving average, and follows a period that included insider selling by a senior executive.
Why the Rating Changed
While Janney Montgomery Scott did not publicly detail an exhaustive list of reasons behind the downgrade, several factors from recent developments surrounding NBT Bancorp provide important context:
- Stock trading above key technical levels: NBTB shares recently crossed above their 200-day moving average of $42.58, trading as high as $46.21. With the stock near these elevated levels, Janney’s shift to Neutral suggests the firm believes much of the near-term upside has already been realized and the risk-reward profile is less favorable at current prices.
- Insider selling activity: In mid-February 2025, NBT Bancorp Executive Vice President Amy Wiles sold 4,435 shares at an average price of $45.72, totaling approximately $202,768. While insider sales can occur for a variety of personal reasons, the timing of the transaction near the stock’s recent highs is notable and may factor into the overall sentiment around the stock.
- Broader consensus leaning cautious: The downgrade aligns with a more cautious stance from other research outlets. Separately, Weiss Ratings reaffirmed a “Hold” rating on NBTB, indicating that Janney is not alone in adopting a wait-and-see posture on the stock.
- Valuation considerations following 2025 results: NBT Bancorp recently announced its 2025 results and declared a cash dividend. With the company’s financial performance now priced into shares trading well above historical averages, the downgrade likely reflects a view that the stock is fairly valued at current levels rather than a concern about fundamental deterioration.
It is worth noting that Janney did not issue a new price target alongside this downgrade, which may indicate the firm views the stock as appropriately priced near its current trading range rather than signaling significant downside risk.
NBT Bancorp’s Dividend Profile
For dividend-focused investors, NBT Bancorp continues to offer a steady income stream. Key dividend details include:
- Annual Dividend: $1.45 per share
- Dividend Yield: 3.18% at current prices
- Most Recent Ex-Dividend Date: March 1, 2026
The company recently declared its cash dividend as part of its 2025 results announcement, reinforcing its commitment to returning capital to shareholders. A yield above 3% remains competitive among regional bank peers, and the consistent dividend payments may provide a reason for income-oriented investors to hold the stock even as the analyst outlook shifts to a more neutral stance.
What This Means for Investors
The downgrade from Janney Montgomery Scott signals that the firm no longer sees a compelling reason to actively recommend buying NBTB at current price levels. However, the move to Neutral — rather than a sell-equivalent rating — suggests confidence in the company’s underlying fundamentals. Investors who already hold positions may find the dividend yield attractive enough to maintain their holdings, while those considering new positions may want to wait for a more favorable entry point or additional catalysts before committing capital.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.