Merchants Bancorp (NASDAQ:MBIN) Stock Price Down 6.7% – Should You Sell?

Merchants Bancorp (NASDAQ:MBIN) fell 6.7% on Wednesday . The company traded as low as $46.78 and last traded at $46.30. 61,453 shares changed hands during trading, a decline of 79% from the average session volume of 291,493 shares. The stock had previously closed at $49.63.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on MBIN. Raymond James Financial reiterated an “outperform” rating and set a $51.00 price target on shares of Merchants Bancorp in a report on Thursday. Zacks Research upgraded Merchants Bancorp from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Morgan Stanley raised their target price on Merchants Bancorp from $42.00 to $51.00 and gave the company an “equal weight” rating in a report on Monday, March 2nd. Weiss Ratings cut Merchants Bancorp from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, April 17th. Finally, Piper Sandler restated an “overweight” rating and set a $58.00 target price on shares of Merchants Bancorp in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, Merchants Bancorp presently has a consensus rating of “Moderate Buy” and a consensus target price of $50.50.

Merchants Bancorp Stock Up 0.1%

The business has a fifty day moving average of $44.60 and a 200 day moving average of $38.59. The company has a market capitalization of $2.14 billion, a PE ratio of 11.37 and a beta of 1.15. The company has a current ratio of 1.16, a quick ratio of 0.86 and a debt-to-equity ratio of 2.22.

Merchants Bancorp (NASDAQ:MBIN) last announced its earnings results on Tuesday, April 28th. The company reported $1.25 EPS for the quarter, beating analysts’ consensus estimates of $1.16 by $0.09. Merchants Bancorp had a return on equity of 13.60% and a net margin of 16.64%.The company had revenue of $175.25 million during the quarter, compared to analysts’ expectations of $174.30 million. Equities research analysts anticipate that Merchants Bancorp will post 5.28 EPS for the current year.

Merchants Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th were given a $0.11 dividend. The ex-dividend date of this dividend was Friday, March 13th. This represents a $0.44 dividend on an annualized basis and a yield of 0.9%. This is an increase from Merchants Bancorp’s previous quarterly dividend of $0.10. Merchants Bancorp’s dividend payout ratio is 11.64%.

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

Insider Transactions at Merchants Bancorp

In other Merchants Bancorp news, insider Martin A. Schroeter sold 5,500 shares of the stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $46.06, for a total value of $253,330.00. Following the sale, the insider owned 10,881 shares of the company’s stock, valued at $501,178.86. This trade represents a 33.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 44.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Merchants Bancorp

A number of hedge funds have recently bought and sold shares of MBIN. Millennium Management LLC raised its position in Merchants Bancorp by 135.6% in the 3rd quarter. Millennium Management LLC now owns 365,075 shares of the company’s stock valued at $11,609,000 after purchasing an additional 210,151 shares in the last quarter. Two Sigma Investments LP raised its position in Merchants Bancorp by 1,509.5% in the 3rd quarter. Two Sigma Investments LP now owns 175,754 shares of the company’s stock valued at $5,589,000 after purchasing an additional 164,834 shares in the last quarter. First Trust Advisors LP raised its position in Merchants Bancorp by 458.7% in the 4th quarter. First Trust Advisors LP now owns 141,145 shares of the company’s stock valued at $4,807,000 after purchasing an additional 115,881 shares in the last quarter. Doma Perpetual Capital Management LLC acquired a new stake in Merchants Bancorp in the 3rd quarter valued at about $2,984,000. Finally, Goldman Sachs Group Inc. raised its position in Merchants Bancorp by 97.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 162,285 shares of the company’s stock valued at $5,527,000 after purchasing an additional 80,136 shares in the last quarter. Institutional investors and hedge funds own 24.57% of the company’s stock.

Merchants Bancorp Company Profile

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.