Exploring Peoples Bancorp of North Carolina, Inc. (PEBK) Investor Profile: Who’s Buying and Why?

You're looking at Peoples Bancorp of North Carolina, Inc. (PEBK) and wondering why major institutional money is still buying into a smaller regional bank, especially with all the noise in the sector. The direct takeaway is that large funds view PEBK as a stable, community-focused value play with a defensible balance sheet, not a high-growth tech stock. Honestly, the investor profile is a classic flight to quality in a turbulent market, and the financials back it up: year-to-date net earnings through September 30, 2025, hit $13.2 million, translating to a diluted earnings per share (EPS) of $2.41, showing consistent profitability even with increased credit loss provisions. So, who's buying? We see the heavy hitters like BlackRock, Inc. and Vanguard Group Inc. holding significant positions-over 271,000 shares and 272,000 shares, respectively, as of their latest filings. That's a lot of conviction. They aren't chasing a quick pop; they are investing in the bedrock of a bank whose total loans reached $1.18 billion against $1.55 billion in total deposits as of Q3 2025. The buy thesis is simple: a solid loan-to-deposit ratio (LDR) and a defintely sticky deposit base in a growing North Carolina market. But what does this mean for your portfolio? Let's map out the near-term risks and opportunities.

Who Invests in Peoples Bancorp of North Carolina, Inc. (PEBK) and Why?

You're looking at Peoples Bancorp of North Carolina, Inc. (PEBK), a community bank with a market capitalization around $161.86 million as of late 2025, and you want to know who's buying and what their game plan is. The short answer is a mix of large institutional funds, who own the majority, and long-term retail investors drawn to the bank's dividend and deep value profile.

The investor base for Peoples Bancorp of North Carolina is a classic small-cap financial story: it's dominated by institutional money, but with a significant local and retail component. Institutional investors, which include mutual funds, pension funds, and asset managers, hold roughly 43.8% to over 52% of the shares outstanding. The remaining ownership is split between retail investors, company insiders, and other smaller public entities. That's a high institutional stake for a bank this size, so their movements matter defintely.

• Institutional Investors: Own over 43.8% of shares; primarily passive and value-focused funds.
• Retail Investors: Hold a sizable portion, often seeking income and regional exposure.
• Insiders/Local Entities: Maintain a stable, long-term block of shares.

Key Investor Types: The Institutional Giants and the Locals

When you look at the top holders, you see the passive giants of the financial world. Firms like The Vanguard Group, Inc. and BlackRock, Inc. are consistently among the largest shareholders, each holding over 5% of the outstanding shares as of September 2025. They aren't buying Peoples Bancorp of North Carolina for a deep, fundamental conviction on the management team; they're buying it because PEBK is a component of a small-cap index, like the Russell 2000, that their massive exchange-traded funds (ETFs) and index funds track. It's a mechanical buy, but it provides a solid base of demand.

On the active side, you have managers like Wellington Management Group LLP, which held a significant stake of over 503,124 shares as of June 2025, and Dimensional Fund Advisors LP. These are often value-tilted funds that see the bank as a statistically cheap asset. Then you have the retail and local investors. These are often long-term holders, perhaps customers of the bank, who appreciate the local focus and the consistent cash flow. They are less sensitive to short-term market noise, but they are a key source of stability for the stock.

Investment Motivations: Value, Income, and Regional Stability

The main attraction for active investors is a clear value proposition. Peoples Bancorp of North Carolina trades at a price-to-earnings (P/E) ratio around 9.69 to 9.97 as of November 2025. Here's the quick math: a P/E under 10 for a profitable bank suggests the market is pricing in very little growth, or even some risk. For a value investor, this low multiple, combined with a compound earnings per share (EPS) growth of 4.3% over the last five years, signals an undervalued opportunity.

Income is the second major driver. The bank pays an annualized dividend of $0.80 per share, translating to a dividend yield of approximately 2.7% to 3.23% in late 2025. Crucially, the dividend payout ratio is low, around 26.14% of earnings, meaning the dividend is well-covered and has room to grow. This consistent cash return is why the total shareholder return (TSR) over the last five years has been higher than the share price return alone-dividends matter here.

Finally, the bank's core business is its strength. Operating 16 banking offices across North Carolina, the bank positions itself as a true community partner. This regional focus on a growing market like North Carolina is appealing to investors who want exposure to local economic stability without the complexity of a massive national bank. You can read more about their focus here: Mission Statement, Vision, & Core Values of Peoples Bancorp of North Carolina, Inc. (PEBK).

Investment Strategies: Long-Term Holding vs. Short-Term Trading

We see two primary strategies at play. The first is the Long-Term Value Holding strategy. This is the approach of the dividend and value investors who buy the stock and hold it, reinvesting the dividend. They are betting on the bank's ability to maintain its net interest income (which rose to $13.9 million in Q1 2025) and its strong capital position (Tier 1 capital ratio was 12.54% in late 2025). They see the stock's low P/E as a margin of safety.

The second strategy, often employed by hedge funds and sophisticated traders, is Short-Term Tactical Trading. The stock's small-cap nature and occasional volatility, like the recent price dip in October 2025, make it a target for tactical plays. Some traders are looking for momentum breakouts, while others are employing risk-hedging strategies, even shorting the stock based on technical signals. The analyst consensus of a 'Hold' rating, with a price target range of $26.06 to $34.55, reinforces this idea of a stock that is largely range-bound but offers opportunities for those who can trade the swings.

• Value Investing: Buy and hold, betting on a P/E multiple expansion from 9.69 towards the peer average.
• Income Investing: Focus on the $0.80 annual dividend and the low 26.14% payout ratio for safe, growing income.
• Passive Indexing: Mechanical buying by large funds like Vanguard and BlackRock to match small-cap index weights.
• Tactical Trading: Exploiting short-term price movements within the established analyst price target range.

Institutional Ownership and Major Shareholders of Peoples Bancorp of North Carolina, Inc. (PEBK)

If you're looking at Peoples Bancorp of North Carolina, Inc. (PEBK), the first thing to understand is that institutional money is a major player here. These are not just retail investors; we're talking about large asset managers and hedge funds that collectively own over half the company. Specifically, institutional investors hold approximately 52.16% of the total shares outstanding, which is a significant block of influence for a regional bank with 5.31 million total shares outstanding.

This high level of institutional ownership tells you two things: first, the stock meets the liquidity and size requirements for inclusion in various exchange-traded funds (ETFs) and index funds, and second, the company's capital structure and strategy are defintely subject to the scrutiny of professional money managers. You need to know who these major holders are and what they've been doing lately, because their actions move the stock.

The Top Institutional Investors in PEBK

The investor profile for Peoples Bancorp of North Carolina, Inc. (PEBK) is dominated by a mix of passive index funds and active asset managers. The largest holders are the behemoths of the passive investing world, like The Vanguard Group, Inc. and BlackRock, Inc., but a significant portion is also held by more active, specialized firms. This blend creates a push-pull dynamic between long-term stability and active engagement.

Here's the quick math on the largest positions, based on 2025 fiscal year data:

Wellington Management Group LLP is the clear leader, holding nearly 10% of the company. This is a substantial stake, and for a small-cap bank, their investment thesis is particularly important. The presence of The Vanguard Group, Inc. and BlackRock, Inc. in the top four is typical, as their index funds automatically buy stakes in companies like Peoples Bancorp of North Carolina, Inc. (PEBK) to track the overall market.

Recent Shifts in Institutional Ownership

In the near-term, the trend has been mixed, but with a slight net decrease in shares held by institutional investors. In a recent quarter, while 32 institutional investors initiated new positions or added to existing ones, 23 decreased their stakes. However, the volume of shares sold was greater than the volume bought, indicating a net selling pressure from this group.

For example, as of June 30, 2025, BlackRock, Inc. reduced its holding by -5.262%. This move, even from a passive manager, can signal a rebalancing or a slight shift in index weighting. Conversely, Dimensional Fund Advisors LP, a firm known for its systematic, factor-based investing, increased its position by 3.066% in the same period.

This net selling is an important data point for you to consider, especially given the general investor concern about regulatory scrutiny and commercial real estate exposure in the regional bank sector, which has kept valuations low.

• Total shares increased by institutions: 73,657
• Total shares decreased by institutions: 237,791
• Net selling activity suggests caution in the near-term.

The Impact of Institutional Investors on Strategy and Price

Institutional investors play a critical role in both the stock price stability and the strategic direction of Peoples Bancorp of North Carolina, Inc. (PEBK). They provide liquidity, meaning their large orders help ensure you can buy or sell shares without wildly swinging the price. More importantly, they drive the stock toward a consensus 'fair value' by constantly evaluating the company's fundamentals.

On the governance side, the 'Big Three'-BlackRock, Inc., The Vanguard Group, Inc., and State Street-are highly influential. Even though they are passive investors, they use their significant voting power on matters like board appointments, executive compensation, and capital allocation. This influence often pushes for shareholder-friendly actions.

A concrete example of this influence is the $3.0 million stock repurchase program authorized by the Board in March 2025. This decision, based on the company's strong balance sheet and capital position (assets of $1.65 billion and shareholders' equity of $130.6 million as of December 31, 2024), is a direct way to enhance shareholder value and is often a response to the demands of large institutional holders who want capital returned to them. To understand the long-term vision that guides these decisions, you should review the Mission Statement, Vision, & Core Values of Peoples Bancorp of North Carolina, Inc. (PEBK).

Still, the stock is currently trading at a historically high discount on a price-to-earnings (P/E) basis compared to the broader S&P 500 index, which reflects the broader investor skepticism toward regional banks post-2023.

Your action item here is to track the next round of 13F filings, due 45 days after the quarter end, to see if the net selling trend continues. If the active managers like Wellington Management Group LLP start adding shares again, that's a strong signal the market is seeing a bottom in the regional bank sector.

Key Investors and Their Impact on Peoples Bancorp of North Carolina, Inc. (PEBK)

The investor profile for Peoples Bancorp of North Carolina, Inc. (PEBK) is unique, and you need to look past the typical institutional names to see the real power. The direct takeaway is this: institutional money holds a significant stake, but the bank's direction is defintely still controlled by insiders, which is typical for a smaller community bank.

As of the 2025 fiscal year data, institutional investors own roughly 42.01% of the company, but insiders-directors, executives, and large family holdings-control a massive 76.40%. This dual structure means the big funds are there for liquidity and passive returns, but they aren't the ones driving the bus. You need to pay attention to both groups.

Notable Institutional Investors and Their Stakes

While Peoples Bancorp of North Carolina, Inc. is a smaller regional bank with a market capitalization around $166.7 million, it still attracts major institutional players. These funds primarily hold shares passively through index or quantitative strategies, which means they are buying the market, not necessarily the management team. The largest institutional holders as of mid-2025 are familiar names from the asset management world.

• Wellington Management Group LLP: The largest institutional owner with 503,124 shares, representing a 9.48% stake.
• The Vanguard Group, Inc.: Holds about 273,599 shares, or 5.15%, largely through its index funds.
• BlackRock, Inc.: Manages about 271,301 shares, a 5.11% slice of the company.

These institutional positions-often held by passive funds-provide a crucial floor for the stock's valuation. They are buying the entire Russell 2000 Index (a small-cap benchmark), and Peoples Bancorp of North Carolina, Inc. is simply part of that basket. It's a good sign for stability, but it's not a vote of confidence in a specific new strategy.

Insider Control and Investor Influence

The real influence on Peoples Bancorp of North Carolina, Inc.'s strategy and stock movement comes from its high level of insider ownership. When insiders own a majority of the shares, they effectively control the company's destiny, from dividend policy to merger decisions. It's a key factor for any investor to consider.

The single largest shareholder is James S. Abernethy, who holds approximately 1.85 million shares, representing a dominant 33.91% of the company. This level of concentration means any major strategic decision-like a potential acquisition or a large share buyback-must have the Abernethy family's approval. For you, this means less risk of an activist investor forcing a quick, potentially disruptive, sale, but also less pressure for radical change. The company's history, mission, and ownership structure are intertwined, which you can read more about here: Peoples Bancorp of North Carolina, Inc. (PEBK): History, Ownership, Mission, How It Works & Makes Money.

Recent Moves and Market Sentiment

Looking at recent 2025 activity, the big institutional players have shown mixed signals, reflecting the broader cautious sentiment around regional banks. BlackRock, Inc. trimmed its position by about 5.262% in the second quarter of 2025, which translates to a sale of approximately 17,787 shares. This move is likely a mechanical adjustment within their index funds rather than a strategic bet against the bank, but it still puts slight selling pressure on the stock.

Conversely, Dimensional Fund Advisors LP, another major quantitative investor, increased its stake by 3.066% around the same time. This shows a slight divergence in systematic trading models. Anyway, Wall Street analysts have maintained a neutral 'Hold' consensus as of October 2025, with price targets ranging from $26.06 to $34.55. That 'Hold' rating, coupled with a recent short-term price dip, suggests the market is waiting for a clear catalyst, like a significant earnings beat or a strategic move from the controlling insiders, before committing to a strong buy or sell action.

Here's a quick snapshot of the top institutional holdings as of mid-2025:

Your next step should be to monitor the insider transaction filings (Form 4s and 144s) for any further buying or selling by the Abernethy family. Insider moves will tell you far more than the quarterly 13F filings from the big funds.

Market Impact and Investor Sentiment

You're looking at Peoples Bancorp of North Carolina, Inc. (PEBK) and wondering who's buying and why the stock moves the way it does. The direct takeaway is that institutional investor sentiment is currently neutral-positive, leaning toward long-term stability rather than explosive near-term growth. The market's view is best summarized by the consensus Hold rating from Wall Street analysts, but the sheer volume of institutional money flowing in suggests a deeper belief in the regional banking model.

As of late 2025, institutional investors hold a significant stake, accounting for about 43.83% of the company's stock. This high level of institutional ownership is a quiet vote of confidence, especially from major players. For instance, Wellington Management Group LLP is a top holder with a 9.48% stake (503,124 shares) as of June 29, 2025. BlackRock, Inc. also holds a notable 5.11% (271,301 shares) as of September 29, 2025. When firms like these commit capital, they're not speculating; they're betting on the bank's long-term financial health. For a deeper dive into the fundamentals that support this, you should check out Breaking Down Peoples Bancorp of North Carolina, Inc. (PEBK) Financial Health: Key Insights for Investors.

Recent Market Reactions to Investor Moves

The stock's recent movements show a clear reaction to both corporate actions and investor activity. In March 2025, the Board of Directors authorized a $3.0 million stock repurchase program, which is management's way of saying the stock is undervalued and they're confident in the balance sheet. This is a strong signal, but it was followed by mixed trading. In early November 2025, the stock price crossed above its 200-day moving average of $29.58, trading as high as $30.42, which is a classic technical signal of bullish momentum. But to be fair, the stock also experienced a short-term dip, including a -4.88% decline on October 10, 2025, falling from $30.30 to $28.82, showing that short-term market dynamics can still create volatility. It's a small-cap bank, so a few large trades can defintely move the needle.

The institutional activity itself points to a complex picture. While some firms are adding aggressively-Wellington Management Group LLP, for example, added a massive 366,459 shares (a +606.4% increase) in Q4 2024-others are exiting completely, like Strategic Value Bank Partners LLC, which removed 272,089 shares (a -100.0% decrease) in the same period. This suggests a divergence in strategy: some investors see a deep value play, while others are rotating out of the regional banking sector.

Analyst Perspectives and Future Outlook

The consensus from the analyst community is a cautious Hold rating, reaffirmed by firms like Weiss Ratings in October 2025. This means they see the stock as fairly valued right now, with limited upside or downside in the immediate future. They aren't predicting a major breakout, but they aren't predicting a collapse either. Price targets for PEBK in 2025 have ranged widely, from a low of $26.06 to a high of $34.55, which shows the uncertainty in valuing a regional bank in the current interest rate environment.

The underlying financials for the 2025 fiscal year support this neutral stance, showing stability but also a slight slowdown in earnings growth. For the nine months ended September 30, 2025, net earnings were $13.2 million, or $2.41 per diluted share. This is up from $2.33 per diluted share in the prior year period, but the Q3 2025 diluted EPS of $0.67 was a slight drop from $0.72 in Q3 2024. The analyst view is that the key investors are holding for the bank's core strengths:

• Total loans grew to $1.18 billion at September 30, 2025.
• Total deposits hit $1.55 billion at September 30, 2025.
• The net interest margin (NIM) improved to 3.55% for the nine months ended September 30, 2025.

Here's the quick math on valuation: with a market cap around $166.6 million and a trailing price-to-earnings (P/E) ratio of about 9.69, the stock is priced like a stable, slow-growth bank, which is exactly what the 'Hold' rating implies. The institutional buying, particularly from index funds and large asset managers, simply reflects the bank's position as a solid, dividend-paying regional component in their broader small-cap value strategies.

Your next step should be to look at the upcoming Q4 2025 earnings release, projected for January 2026, to see if the net interest margin continues to expand and if loan growth accelerates past the current pace.