Independent Bank (NASDAQ:INDB) Shares Gap Down on Disappointing Earnings

Independent Bank Corp. (NASDAQ:INDB) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $87.17, but opened at $80.70. Independent Bank shares last traded at $80.3540, with a volume of 86,960 shares.

The bank reported $1.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.79 by ($0.09). The business had revenue of $253.32 million for the quarter, compared to analyst estimates of $257.50 million. Independent Bank had a return on equity of 9.17% and a net margin of 20.31%.

Independent Bank Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 9th. Investors of record on Monday, June 29th were paid a $0.64 dividend. The ex-dividend date was Monday, June 29th. This represents a $2.56 dividend on an annualized basis and a dividend yield of 3.0%. Independent Bank’s payout ratio is 50.79%.

Key Independent Bank News

Here are the key news stories impacting Independent Bank this week:

• Negative Sentiment: Independent Bank reported Q2 earnings of $1.70 per share, missing estimates of $1.77 to $1.79, while revenue of $253.3 million also came in below forecasts. Independent Bank Corp. Reports Second Quarter Net Income of $81.8 Million
• Neutral Sentiment: The company’s second-quarter net income rose to $81.8 million from $79.9 million in the prior quarter, and EPS improved sequentially from $1.63, showing some operational progress even as results missed expectations. Independent Bank Corp. Reports Second Quarter Net Income of $81.8 Million
• Negative Sentiment: Market commentary following the release emphasized that the stock was under pressure because the results missed sales and earnings expectations, overshadowing the company’s solid profitability metrics such as a 19.14% net margin and 8.66% return on equity. Why Independent Bank (INDB) shares are getting obliterated today

Analyst Ratings Changes

A number of analysts recently commented on INDB shares. Piper Sandler boosted their price objective on shares of Independent Bank from $84.00 to $90.00 and gave the stock a “neutral” rating in a report on Friday, June 26th. Barclays increased their target price on shares of Independent Bank from $80.00 to $82.00 and gave the company an “underweight” rating in a report on Tuesday, April 7th. Hovde Group initiated coverage on shares of Independent Bank in a research report on Friday, May 15th. They set an “outperform” rating and a $95.00 price target for the company. Stephens started coverage on Independent Bank in a research note on Wednesday, April 15th. They set an “overweight” rating and a $88.00 price target on the stock. Finally, Independent Research set a $95.00 price target on Independent Bank in a research note on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $91.57.

Insider Activity

In related news, Director Joseph C. Lerner sold 2,832 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $77.31, for a total value of $218,941.92. Following the sale, the director directly owned 16,215 shares in the company, valued at $1,253,581.65. The trade was a 14.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Independent Bank

Several hedge funds have recently added to or reduced their stakes in INDB. Revolve Wealth Partners LLC acquired a new position in Independent Bank during the second quarter worth about $221,000. Reinhart Partners LLC. grew its position in shares of Independent Bank by 1.3% in the second quarter. Reinhart Partners LLC. now owns 657,871 shares of the bank’s stock valued at $55,078,000 after purchasing an additional 8,575 shares during the last quarter. 55 North Private Wealth LLC acquired a new stake in shares of Independent Bank in the second quarter valued at approximately $230,000. Ballast Advisors LLC purchased a new position in shares of Independent Bank during the 1st quarter worth approximately $30,000. Finally, Glenmede Trust Co. NA increased its stake in shares of Independent Bank by 3.6% during the 1st quarter. Glenmede Trust Co. NA now owns 23,731 shares of the bank’s stock worth $1,785,000 after purchasing an additional 826 shares in the last quarter. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Independent Bank Price Performance

The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a market capitalization of $4.08 billion, a price-to-earnings ratio of 15.25 and a beta of 0.77. The company has a 50-day moving average of $81.15 and a 200-day moving average of $79.25.

About Independent Bank

Independent Bank Group, Inc (NASDAQ:INDB) is a bank holding company headquartered in McKinney, Texas, that provides a range of financial services through its wholly owned subsidiary, Independent Bank. Tracing its roots to the late 19th century, the company has grown from a single community bank into a regional financial institution serving individuals, small businesses and commercial clients. Independent Bank Group became a bank holding company in 1983 and expanded its footprint through organic growth and strategic acquisitions.

The company’s primary business activities encompass retail and commercial banking, including deposit products, consumer and business lending and credit services.