Merchants Bancorp (NASDAQ:MBIN) Announces Quarterly Earnings Results

Merchants Bancorp (NASDAQ:MBIN) announced its quarterly earnings data on Wednesday. The company reported $1.28 EPS for the quarter, beating the consensus estimate of $0.94 by $0.34, Zacks reports. Merchants Bancorp had a net margin of 17.73% and a return on equity of 15.20%. The firm had revenue of $193.49 million during the quarter, compared to analysts’ expectations of $170.80 million.

Merchants Bancorp Trading Up 11.8%

Shares of NASDAQ MBIN traded up $4.11 on Thursday, reaching $39.06. 118,177 shares of the company traded hands, compared to its average volume of 128,790. The stock has a market capitalization of $1.79 billion, a PE ratio of 8.98 and a beta of 1.25. Merchants Bancorp has a fifty-two week low of $27.25 and a fifty-two week high of $43.77. The company has a current ratio of 1.10, a quick ratio of 0.80 and a debt-to-equity ratio of 1.73. The company has a 50 day moving average of $34.49 and a 200 day moving average of $33.01.

Merchants Bancorp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 15th were given a $0.10 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.0%. Merchants Bancorp’s payout ratio is currently 9.20%.

Merchants Bancorp announced that its board has approved a stock repurchase plan on Wednesday, January 28th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to reacquire up to 6.2% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several analysts have weighed in on the company. Wall Street Zen raised Merchants Bancorp from a “sell” rating to a “hold” rating in a report on Saturday, November 1st. Piper Sandler restated an “overweight” rating and set a $42.00 target price (up from $41.00) on shares of Merchants Bancorp in a report on Thursday, October 30th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Merchants Bancorp in a report on Monday, December 29th. Raymond James Financial reissued an “outperform” rating and set a $38.00 price objective (down from $40.00) on shares of Merchants Bancorp in a research note on Wednesday, October 29th. Finally, Zacks Research raised Merchants Bancorp from a “strong sell” rating to a “hold” rating in a research note on Thursday, October 30th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Merchants Bancorp has a consensus rating of “Hold” and an average target price of $40.25.

Hedge Funds Weigh In On Merchants Bancorp

A number of hedge funds have recently made changes to their positions in the stock. Sei Investments Co. increased its position in Merchants Bancorp by 13.1% during the 3rd quarter. Sei Investments Co. now owns 13,471 shares of the company’s stock worth $428,000 after purchasing an additional 1,557 shares in the last quarter. Victory Capital Management Inc. increased its position in shares of Merchants Bancorp by 8.9% in the third quarter. Victory Capital Management Inc. now owns 13,675 shares of the company’s stock worth $435,000 after acquiring an additional 1,118 shares in the last quarter. Osaic Holdings Inc. raised its stake in shares of Merchants Bancorp by 6.6% in the 2nd quarter. Osaic Holdings Inc. now owns 14,376 shares of the company’s stock valued at $475,000 after acquiring an additional 884 shares during the period. Oxford Financial Group LTD. LLC acquired a new position in shares of Merchants Bancorp during the 2nd quarter valued at $368,000. Finally, BNP Paribas Financial Markets boosted its position in Merchants Bancorp by 702.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 17,268 shares of the company’s stock worth $571,000 after purchasing an additional 15,116 shares during the period. Institutional investors and hedge funds own 24.57% of the company’s stock.

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.