Merchants Bancorp (NASDAQ:MBIN) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts give Merchants Bancorp a “Moderate Buy” consensus rating, with two buys, one strong buy and two holds. The average 12-month price target is $55.50.
• Merchants Bancorp reported quarterly EPS of $1.48, beating the $1.22 consensus estimate, while revenue of $182.22 million also exceeded expectations.
• The company declared a quarterly dividend of $0.11 per share, equivalent to $0.44 annually and a 0.8% yield; institutional investors own 24.57% of the stock.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the five ratings firms that are presently covering the stock, MarketBeat reports. Two investment analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $55.50.

Several research analysts have weighed in on the company. Raymond James Financial downgraded Merchants Bancorp from an "outperform" rating to a "market perform" rating in a research note on Wednesday, July 1st. Zacks Research raised Merchants Bancorp from a "hold" rating to a "strong-buy" rating in a report on Friday, July 31st. Morgan Stanley set a $65.00 price objective on shares of Merchants Bancorp and gave the company an "equal weight" rating in a research report on Tuesday, September 8th. Weiss Ratings reissued a "buy (b-)" rating on shares of Merchants Bancorp in a research note on Friday, July 31st. Finally, Piper Sandler restated an "overweight" rating and set a $64.00 price objective on shares of Merchants Bancorp in a research report on Wednesday, July 29th.

Insider Transactions at Merchants Bancorp

In related news, Director Julia Kaercher sold 9,000 shares of the firm's stock in a transaction dated Thursday, July 30th. The shares were sold at an average price of $55.20, for a total value of $496,800.00. Following the completion of the sale, the director owned 727,103 shares in the company, valued at $40,136,085.60. This trade represents a 1.22% decrease in their ownership of the stock. The sale 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.

Hedge Funds Weigh In On Merchants Bancorp

A number of large investors have recently modified their holdings of MBIN. BlackRock Inc. purchased a new stake in shares of Merchants Bancorp during the 2nd quarter worth $205,260,000. Dimensional Fund Advisors LP increased its holdings in shares of Merchants Bancorp by 6.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,758,985 shares of the company's stock valued at $75,476,000 after purchasing an additional 102,087 shares in the last quarter. Basswood Capital Management L.L.C. acquired a new stake in shares of Merchants Bancorp in the second quarter valued at about $13,687,000. Bank of New York Mellon Corp lifted its stake in shares of Merchants Bancorp by 43.7% in the first quarter. Bank of New York Mellon Corp now owns 236,146 shares of the company's stock valued at $10,133,000 after purchasing an additional 71,775 shares during the period. Finally, Royal Bank of Canada boosted its holdings in Merchants Bancorp by 3.3% during the first quarter. Royal Bank of Canada now owns 212,852 shares of the company's stock worth $9,134,000 after buying an additional 6,899 shares in the last quarter. 24.57% of the stock is owned by hedge funds and other institutional investors.

Merchants Bancorp Price Performance

Shares of MBIN opened at $52.35 on Tuesday. Merchants Bancorp has a fifty-two week low of $30.37 and a fifty-two week high of $56.87. The company has a market capitalization of $2.40 billion, a price-to-earnings ratio of 10.51 and a beta of 1.14. The firm has a 50-day simple moving average of $52.59 and a 200-day simple moving average of $48.56. The company has a debt-to-equity ratio of 2.32, a quick ratio of 0.89 and a current ratio of 1.21.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $1.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.22 by $0.26. The firm had revenue of $182.22 million for the quarter, compared to analysts' expectations of $179.00 million. Merchants Bancorp had a return on equity of 15.29% and a net margin of 19.80%. On average, equities research analysts anticipate that Merchants Bancorp will post 5.58 earnings per share for the current year.

Merchants Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 15th. Merchants Bancorp's dividend payout ratio is currently 8.84%.

About Merchants Bancorp

Merchants Bancorp is a diversified financial holding company headquartered in Carmel, Indiana. Founded in 2007, the company operates primarily through Merchants Bank of Indiana and provides specialized banking and finance services to commercial and institutional customers across the United States.

The company's principal activities include multifamily mortgage banking, healthcare real estate finance and mortgage warehouse lending. Its multifamily business provides financing for apartment properties, including government-supported and conventional transactions.

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