Exploring ConnectOne Bancorp, Inc. (CNOB) Investor Profile: Who’s Buying and Why?

You're looking at ConnectOne Bancorp, Inc. (CNOB) and asking the right question: with all the regional bank noise, who is defintely buying this stock and why are they stepping in right now? The short answer is that major institutions are clearly signaling confidence in the post-merger turnaround story, despite the stock price sitting around $24.68 per share as of early November 2025, which is a 13.07% decline from a year ago. The big catalyst is the June 1, 2025, merger with The First of Long Island Corporation, which has already helped lift the company's total assets to $14.0 billion and drove a massive swing in Q3 2025 results: a net income of $39.5 million, a huge reversal from the prior quarter's net loss of $21.8 million. Are you seeing an opportunity in that kind of operational leverage, or are you worried about the commercial real estate (CRE) exposure that comes with a regional bank? We'll dig into the data, including why BlackRock, Inc., Fmr Llc, and The Vanguard Group, Inc. are among the 421 institutional owners holding over 42.3 million shares, to map out the real risk and reward here.

Who Invests in ConnectOne Bancorp, Inc. (CNOB) and Why?

If you're looking at ConnectOne Bancorp, Inc. (CNOB), you're seeing a regional bank that has successfully navigated a challenging environment, making it a compelling target for both large institutions and income-focused retail investors. The investor base is dominated by institutional money-roughly 67.70% of the stock is held by these big players-but the story is really about a value-plus-growth narrative, especially after the 2025 merger activities.

The core of the investment thesis boils down to two things: a commitment to shareholder returns via a solid dividend and a clear, profitable growth trajectory in the competitive New York/New Jersey/Long Island market. Frankly, the Q3 2025 net income of $39.5 million, a significant jump from the previous quarter's loss, is the kind of concrete performance that gets institutional attention.

Key Investor Types and Their Positions

The ConnectOne Bancorp, Inc. shareholder list is a who's who of asset management, indicating a strong belief in the stock's long-term stability and value. This isn't a stock purely driven by short-term traders; it's a staple in diversified portfolios.

Institutional investors-mutual funds, pension funds, and asset managers-hold the majority stake, with ownership figures hovering around 69.07%. This high percentage suggests professional money managers view ConnectOne Bancorp, Inc. as a quality holding within the regional banking sector.

Here's a quick look at the major institutional holders, based on recent 2025 filings:

• BlackRock, Inc.: A massive anchor investor, holding millions of shares.
• Vanguard Group Inc.: A key holder, representing passive index funds and long-term capital.
• Dimensional Fund Advisors LP: Known for its systematic, value-driven approach.
• Fmr Llc (Fidelity): Another major active and passive fund manager with a substantial position.

Retail investors, while owning a smaller percentage, are often attracted by the bank's consistent dividend and its focus on the accessible small-to-middle-market business segment, which feels more tangible than global finance. It's a bank they can understand.

Investment Motivations: Growth and Income

The motivations for buying ConnectOne Bancorp, Inc. shares are clearly split between growth prospects and reliable income, a classic 'total return' strategy.

Growth Prospects (The Catalyst): The successful merger with The First of Long Island Corporation (FLIC) is the primary growth catalyst for 2025. This deal expanded the bank's footprint and is expected to drive earnings accretion. The bank reported strong organic growth in Q3 2025, with loans increasing over 5.0% and client deposits growing at an annualized rate of 4.0% since the end of June. Analysts are forecasting a 2025 earnings per share (EPS) of $2.23, which represents a significant year-over-year growth rate of 22.53%. That's a compelling growth number for a regional bank.

Dividends (The Income Anchor): For income-focused investors, the dividend is a major draw. ConnectOne Bancorp, Inc. pays an annual dividend of $0.72 per share, translating to a dividend yield of approximately 2.97% in late 2025. The quarterly payment is a stable $0.18 per share. The payout ratio is healthy at about 58.06% of trailing earnings, suggesting the dividend is sustainable and well-covered. A consistent dividend is a strong signal of management confidence and capital stability.

Investment Strategies in Play

The strategies employed by ConnectOne Bancorp, Inc. investors reflect the dual nature of its investment case. You see a mix of long-term holding and risk-aware value plays.

Value Investing: Many institutional holders, particularly those focused on fundamentals, see ConnectOne Bancorp, Inc. as undervalued. They are buying based on strong capital ratios-a total risk-based capital ratio of 13.88% and a tangible common equity ratio of 8.36%-which signal a well-capitalized bank. They are looking for the stock price to converge with the intrinsic value as the merger benefits fully materialize. This is a classic value play: buy a well-managed bank at a discount to its long-term potential.

Long-Term Holding/Indexing: Passive funds like those from Vanguard Group Inc. and BlackRock, Inc. hold the stock as part of their strategy to mirror the performance of the entire market or a specific index like the Russell 2000 ETF (IWM). Their strategy is simple: hold for the long haul to capture the market's return, including the consistent dividend income.

Risk-Adjusted Positioning: To be fair, a key part of the investment strategy for any regional bank in 2025 is managing credit risk. Investors are acutely aware of the bank's concentration in commercial real estate (CRE) lending. The strategy here is not to ignore the risk, but to weigh it against the bank's strong credit quality metrics-nonperforming assets are low at just 0.28% of total assets, and annualized net charge-offs are below 0.20%. You're betting the management team can navigate the CRE cycle better than peers. For a deeper dive on the bank's underlying health, you should read Breaking Down ConnectOne Bancorp, Inc. (CNOB) Financial Health: Key Insights for Investors.

Here's the quick math: The sustainable dividend yield plus the projected double-digit EPS growth makes a compelling case for a long-term, total-return strategy.

Next Step: Review your current portfolio allocation to regional banks and compare ConnectOne Bancorp, Inc.'s 2.97% yield against your current income targets.

Institutional Ownership and Major Shareholders of ConnectOne Bancorp, Inc. (CNOB)

You're looking at ConnectOne Bancorp, Inc. (CNOB) and wondering who the big players are and what they're doing. The direct takeaway is this: institutional investors own the vast majority of CNOB's stock, currently holding about 70.64% of the shares, which makes their trading activity a critical factor in the stock's near-term movements and long-term strategy.

As a seasoned analyst, I see this high level of institutional ownership-well over two-thirds of the company-as a sign of established, though perhaps sometimes volatile, market confidence. These aren't retail investors; they are massive funds like BlackRock, Inc. and The Vanguard Group, Inc. that are betting tens of millions of dollars on CNOB's commercial banking model, especially its focus on the New Jersey/New York metro area and its fintech subsidiary, BoeFly, Inc. You can learn more about their business model at ConnectOne Bancorp, Inc. (CNOB): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors and Their Holdings

The list of CNOB's largest shareholders is a who's who of global asset managers. Based on the most recent filings (primarily Q3 2025 data), the top investors are the index fund giants and large active managers. Their holdings are substantial, representing significant capital commitment to the regional bank. Here's a quick snapshot of the top three by shares held as of the most recent 2025 filings:

• BlackRock, Inc.: Held 4,857,939 shares as of September 30, 2025.
• Fmr Llc: Held 3,222,812 shares as of June 30, 2025.
• Vanguard Group Inc.: Held 2,851,054 shares as of September 30, 2025.

These massive positions mean that even small percentage changes in their portfolios can translate into significant buying or selling pressure on the stock. For example, Fmr Llc's stake alone was valued at over $76.45 million recently. That's a serious vote of confidence, or a serious risk, depending on their next move.

Recent Shifts in Institutional Ownership

The recent trading activity through the third quarter of 2025 shows a mixed, but telling, picture. This isn't a simple buy-or-sell story; it's a rebalancing act driven by CNOB's recent strong financial performance and its merger with The First of Long Island Corporation (FLIC) in June 2025. The merger is defintely a key driver here.

We saw some of the largest holders trimming their positions, which is typical after a period of strong gains or a merger integration. BlackRock, Inc., for instance, decreased its stake by -10.94% (a sale of -596,731 shares) in Q3 2025. Vanguard Group Inc. also slightly reduced its position by -0.267%. But, other firms were aggressively accumulating shares, signaling a belief in the post-merger growth story.

Here's the quick math on some of the notable buying activity:

The aggressive buying by firms like Arrowstreet Capital Limited Partnership suggests a strong belief that the market is still undervaluing CNOB's post-merger earnings power. This is a classic value play on a well-executed integration.

Impact of Institutional Investors on Stock and Strategy

The role of these large investors in ConnectOne Bancorp, Inc. is twofold: they are a major source of liquidity and a powerful influence on corporate governance. With institutional ownership at over 70%, their collective action dictates the stock's volume and volatility. When a major fund like BlackRock, Inc. sells nearly 600,000 shares, it creates downward pressure that individual investors simply can't match.

More importantly, these shareholders keep management focused on key financial metrics. CNOB's Q3 2025 results, which showed a net income of $39.5 million and a substantial widening of the net interest margin to 3.11%, are exactly what these institutions demand. Their presence ensures a relentless focus on capital strength, with the company's total risk-based capital ratio at a healthy 13.88% and a tangible common equity ratio of 8.36%.

What this high institutional ownership hides, however, is the potential for a herd mentality. If a few major players decide to exit the regional banking sector, or if CNOB's credit quality (which is currently robust with nonperforming assets at just 0.28% of total assets) were to slip, the selling could be swift and severe.

Your action item here is clear: Track the 13F filings closely, especially for the top 10 holders. If you see a coordinated, large-scale reduction in positions over two consecutive quarters, that's your signal to reassess your own risk exposure.

Key Investors and Their Impact on ConnectOne Bancorp, Inc. (CNOB)

You want to know who is buying ConnectOne Bancorp, Inc. (CNOB) and why. The direct takeaway is that ConnectOne Bancorp, Inc. is overwhelmingly an institutional favorite, with major passive and active funds driving its valuation, especially following the strategic merger in 2025. This high institutional ownership-around 70.64% as of November 2025-means the investment thesis is largely centered on the bank's ability to execute its regional growth strategy.

The Heavyweights: Who Owns the Largest Stakes?

The investor profile of ConnectOne Bancorp, Inc. is dominated by the world's largest asset managers. These are the funds that own a piece of nearly every public company, so their presence signals inclusion in key indices, which is defintely a good thing for stock liquidity. The top holders are primarily index and passive funds, but a few active managers are also making significant bets.

Here's a quick look at the top institutional holders and their reported activity through the end of Q3 2025:

BlackRock, Inc. and The Vanguard Group, Inc. are the largest owners, which is typical for a mid-cap bank. The slight trimming by BlackRock, Inc. of over 596,000 shares in Q3 2025 is likely portfolio rebalancing, not a negative signal on the company itself. On the flip side, the major increase by Wellington Management Group Llp in Q2 2025 suggests a strong conviction in the post-merger value proposition.

Investor Influence and the 2025 Merger Catalyst

In a company like ConnectOne Bancorp, Inc., where institutional ownership is so high, major strategic decisions must have shareholder backing. The most concrete example of this influence in 2025 was the merger with The First of Long Island Corporation (FLIC). Shareholders from both companies approved the deal in February 2025, which was a clear mandate from the institutional base. The successful completion of the merger in June 2025 immediately propelled the bank's total assets to approximately $14.0 billion, fundamentally changing its scale and market presence.

The active buying and selling around this event shows how investors impact stock movements. For example, in the most recent quarter, 123 institutional investors added shares, while 52 decreased their positions. This churn creates trading volume and price discovery, but the overall trend is a net inflow of capital from institutions betting on the combined entity's ability to deliver on merger synergies.

• Major Decision Impact: Shareholder approval was crucial for the FLIC merger, a clear sign of institutional power.
• Post-Merger Bet: Investors are buying into the projected earnings accretion, which was estimated at approximately $9.8 million per quarter for 2025.
• Strategic Alignment: The high institutional stake ensures management remains focused on core financial metrics and long-term value creation.

Recent Moves and the Value Proposition

The reason for the buying is simple: ConnectOne Bancorp, Inc. is seen as a well-managed regional bank that successfully navigated a major integration in 2025, setting the stage for future growth. The Q3 2025 results, with net income available to common stockholders hitting $39.5 million (or $0.78 diluted EPS), confirmed the turnaround from the Q2 loss that included significant merger-related charges.

Here's the quick math: The successful merger integration, evidenced by the strong Q3 performance, is the primary driver. Investors are looking past the one-time costs to the long-term franchise value. The bank's commitment to its community-focused, tech-enabled model-which you can read more about at Mission Statement, Vision, & Core Values of ConnectOne Bancorp, Inc. (CNOB)-is a key part of the investment thesis. The stock movements reflect this confidence, especially from active managers who see a clear path to return on tangible common equity (ROTCE) expansion.

So, the action item for you is to monitor the next few quarters for continued execution on the merger synergies. If the bank maintains its Q3 2025 momentum, the institutional support will only solidify.

Market Impact and Investor Sentiment

You're looking at ConnectOne Bancorp, Inc. (CNOB) and wondering what the big players think, which is smart. The investor sentiment is best described as cautiously optimistic, moving toward a 'Moderate Buy' consensus among Wall Street analysts, but the market's reaction to recent events tells a more complex story.

Institutional ownership is high, sitting at about 70.64% of the float as of November 2025, which shows significant confidence from major funds in the bank's long-term strategy. This kind of high institutional backing suggests that the smart money sees the bank's strategy-especially the merger-as a clear path to scale. Still, it's not a one-way street; the stock price of $24.68 per share as of November 10, 2025, reflects a year-over-year decline of 13.07%, even with a 7.1% lift year-to-date.

Recent Market Reactions to Ownership Shifts

The market has responded to ConnectOne Bancorp's strategic moves, particularly the merger with The First of Long Island Corporation (FLIC) on June 1, 2025. While the merger drove the bank's total assets to $14.0 billion by September 30, 2025, the immediate financial reporting was bumpy. The second quarter of 2025 saw a net loss available to common stockholders of $(21.8) million, which included substantial merger-related charges. The market reaction was surprisingly muted, with the stock only trading down 1.63% from its last close on the day of the Q2 2025 earnings miss.

The real positive reaction came with the Q3 2025 results, where the bank reported a significant turnaround with net income available to common stockholders of $39.5 million and diluted EPS of $0.78. This jump, coupled with the Net Interest Margin (NIM) widening to 3.11%, helped revive sentiment, which is why you see the stock up 7.1% year-to-date.

Here's the quick math on recent institutional moves, based on Q3 2025 13F filings:

• BlackRock, Inc.: Sold 596,731 shares, a -10.94% change, signaling some profit-taking or reallocation after the merger news.
• Wellington Management Group Llp: Added 693,766 shares in Q2 2025, a strong vote of confidence in the post-merger value.
• Fmr Llc: Increased its position by 59,725 shares, a 1.888% change, showing continued accumulation.

What this estimate hides is the difference between active and passive funds. A huge holder like BlackRock selling a chunk might just be their index funds rebalancing after the merger changed the company's market cap or index weight. You need to look closer at the active managers.

Analyst Perspectives: Why the Buy Rating?

The consensus price target for ConnectOne Bancorp is $29.50, which suggests a predicted upside of 26.28% from the current price. This optimistic view is grounded in the clear financial benefits of the merger and the bank's credit quality. The bank's tangible book value per share grew by 0.8% quarter-over-quarter to $23.45.

Analysts are betting on three key drivers:

• Margin Expansion: The NIM of 3.11% in Q3 2025 is a sharp increase, and management is projecting further improvement, especially if the Federal Reserve cuts rates.
• Scale and Footprint: The merger created a New York-metro community bank with approximately $14 billion in total assets and $11.4 billion in deposits as of September 30, 2025, expanding its reach into high-growth Long Island.
• Credit Quality: Nonperforming assets are low at just 0.28% of total assets, which is a strong sign of a healthy loan book.

To be fair, there are risks. The bank's forecast annual revenue growth rate of 25.04% for 2025 is not defintely forecast to beat the US Banks - Regional industry's average of 519.91%. Plus, the high P/E ratio, which is almost double the broader Banks industry average, suggests some valuation upside may be limited unless growth accelerates significantly. You should always check the Mission Statement, Vision, & Core Values of ConnectOne Bancorp, Inc. (CNOB). to see if their strategy aligns with your long-term goals.

The core of the bull case is simple: the merger pain is over, and the growth engine is now running, as shown by the Q3 2025 operating return on average tangible common equity of 14.74%.