Merchants Bancorp (NASDAQ:MBIN) Shares Gap Up Following Better-Than-Expected Earnings

Merchants Bancorp (NASDAQ:MBIN) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $34.95, but opened at $37.31. Merchants Bancorp shares last traded at $39.06, with a volume of 105,134 shares trading hands.

The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.34. The business had revenue of $193.49 million during the quarter, compared to analysts’ expectations of $170.80 million. Merchants Bancorp had a net margin of 16.02% and a return on equity of 13.35%.

Merchants Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 15th were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Monday, December 15th. Merchants Bancorp’s dividend payout ratio (DPR) is presently 10.58%.

Merchants Bancorp announced that its Board of Directors has authorized a share buyback plan on Wednesday, January 28th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 6.2% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

MBIN has been the subject of a number of recent analyst reports. Morgan Stanley lifted their price target on Merchants Bancorp from $40.00 to $42.00 and gave the stock an “equal weight” rating in a report on Friday. UBS Group set a $42.00 target price on Merchants Bancorp in a research note on Thursday, October 30th. Raymond James Financial reaffirmed an “outperform” rating and issued a $38.00 price target (down from $40.00) on shares of Merchants Bancorp in a report on Wednesday, October 29th. Piper Sandler reissued an “overweight” rating and set a $42.00 price objective (up previously from $41.00) on shares of Merchants Bancorp in a report on Thursday, October 30th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Merchants Bancorp in a report on Monday, December 29th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $41.00.

Institutional Trading of Merchants Bancorp

Institutional investors and hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its stake in Merchants Bancorp by 4.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,601,928 shares of the company’s stock worth $50,942,000 after purchasing an additional 61,622 shares during the period. Vanguard Group Inc. raised its holdings in shares of Merchants Bancorp by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 1,414,584 shares of the company’s stock valued at $48,181,000 after buying an additional 36,184 shares during the last quarter. Royce & Associates LP boosted its stake in shares of Merchants Bancorp by 10.2% during the third quarter. Royce & Associates LP now owns 862,119 shares of the company’s stock worth $27,415,000 after buying an additional 79,707 shares during the period. Geode Capital Management LLC grew its holdings in shares of Merchants Bancorp by 17.4% during the second quarter. Geode Capital Management LLC now owns 681,486 shares of the company’s stock worth $22,539,000 after buying an additional 101,139 shares during the last quarter. Finally, American Century Companies Inc. grew its holdings in shares of Merchants Bancorp by 10.9% during the third quarter. American Century Companies Inc. now owns 630,077 shares of the company’s stock worth $20,036,000 after buying an additional 62,097 shares during the last quarter. Hedge funds and other institutional investors own 24.57% of the company’s stock.

Merchants Bancorp Price Performance

The company has a 50-day moving average of $34.89 and a 200-day moving average of $33.10. The company has a debt-to-equity ratio of 1.73, a quick ratio of 0.80 and a current ratio of 1.10. The stock has a market cap of $1.90 billion, a price-to-earnings ratio of 10.97 and a beta of 1.25.

About Merchants Bancorp

Merchants Bancorp (NASDAQ: MBIN) is the bank holding company for Merchants Bank, a regional financial institution headquartered in Buffalo, New York. Through its network of branches and digital platforms, the company offers a range of banking services across western and central New York. Merchants Bancorp operates as a full‐service commercial bank, serving small and medium-sized businesses, professionals, families and individuals in its core markets.

The company’s primary activities include deposit taking, commercial and consumer lending, mortgage origination, and treasury management services.