Mechanics Bancorp (NASDAQ:MCHB) Sets New 12-Month High on Earnings Beat

Mechanics Bancorp (NASDAQ:MCHB) shares hit a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $16.86 and last traded at $16.8290, with a volume of 87984 shares changing hands. The stock had previously closed at $16.49.

The company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.25 by $0.02. Mechanics Bancorp had a return on equity of 10.61% and a net margin of 21.71%.The firm had revenue of $200.97 million for the quarter, compared to analyst estimates of $198.30 million.

Mechanics Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Saturday, May 23rd were given a dividend of $0.70 per share. This is a boost from Mechanics Bancorp’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.80 annualized dividend and a dividend yield of 16.6%. Mechanics Bancorp’s dividend payout ratio is 373.33%.

Analyst Ratings Changes

Several brokerages have commented on MCHB. Stifel Nicolaus set a $17.00 price target on shares of Mechanics Bancorp in a research note on Thursday, May 28th. Raymond James Financial assumed coverage on shares of Mechanics Bancorp in a report on Thursday, May 28th. They issued an “outperform” rating and a $17.00 target price for the company. Cantor Fitzgerald initiated coverage on shares of Mechanics Bancorp in a research note on Friday, April 10th. They set an “overweight” rating and a $17.00 price target on the stock. Weiss Ratings cut shares of Mechanics Bancorp from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, July 23rd. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Mechanics Bancorp from $16.00 to $15.50 and set a “market perform” rating for the company in a research note on Monday, May 4th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $16.62.

Institutional Investors Weigh In On Mechanics Bancorp

Large investors have recently modified their holdings of the company. Rhumbline Advisers purchased a new position in shares of Mechanics Bancorp during the third quarter worth approximately $355,000. JPMorgan Chase & Co. purchased a new stake in Mechanics Bancorp in the 3rd quarter valued at $118,000. Vanguard Group Inc. purchased a new position in Mechanics Bancorp during the 3rd quarter worth $13,128,000. Victory Capital Management Inc. purchased a new position in Mechanics Bancorp during the 3rd quarter worth $322,000. Finally, Dimensional Fund Advisors LP acquired a new position in Mechanics Bancorp in the third quarter valued at $9,557,000. 74.71% of the stock is owned by institutional investors and hedge funds.

Mechanics Bancorp Trading Up 2.1%

The business’s 50 day simple moving average is $15.43 and its 200 day simple moving average is $15.07. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.80 and a quick ratio of 0.80. The company has a market capitalization of $3.73 billion, a price-to-earnings ratio of 22.45 and a beta of 1.41.

About Mechanics Bancorp

HomeStreet, Inc operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences.