Farmers & Merchants Bancorp Inc. (NASDAQ:FMAO) Short Interest Up 19.7% in March

Key Points

• Short interest rose 19.7% in March to 136,546 shares (about 1.0% of shares outstanding), leaving a short-interest ratio of 2.7 days as of March 31.
• Farmers & Merchants beat quarterly expectations with EPS of $0.71 versus $0.67 and revenue of $32.45M, and the stock trades around $27.37 with a market cap near $398.5M and a P/E of 11.3.
• The company declared a $0.23 quarterly dividend (annualized $0.92, ~3.4% yield), while analysts maintain a consensus "Hold" rating with an average price target of $28.00.

Farmers & Merchants Bancorp Inc. (NASDAQ:FMAO - Get Free Report) saw a significant growth in short interest in the month of March. As of March 31st, there was short interest totaling 136,546 shares, a growth of 19.7% from the March 15th total of 114,091 shares. Based on an average daily volume of 51,054 shares, the short-interest ratio is currently 2.7 days. Currently, 1.0% of the shares of the stock are short sold.

Farmers & Merchants Bancorp Trading Up 2.2%

Shares of FMAO stock traded up $0.59 during mid-day trading on Friday, reaching $27.37. 54,188 shares of the stock traded hands, compared to its average volume of 45,208. The stock's fifty day simple moving average is $26.32 and its two-hundred day simple moving average is $25.60. Farmers & Merchants Bancorp has a 1-year low of $22.19 and a 1-year high of $29.83. The company has a market cap of $398.51 million, a price-to-earnings ratio of 11.31 and a beta of 0.81. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.71.

Farmers & Merchants Bancorp (NASDAQ:FMAO - Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The financial services provider reported $0.71 EPS for the quarter, beating analysts' consensus estimates of $0.67 by $0.04. Farmers & Merchants Bancorp had a return on equity of 9.33% and a net margin of 17.47%.The firm had revenue of $32.45 million for the quarter, compared to analyst estimates of $27.30 million. On average, research analysts anticipate that Farmers & Merchants Bancorp will post 1.82 EPS for the current fiscal year.

Farmers & Merchants Bancorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 20th. Investors of record on Friday, April 3rd will be paid a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Thursday, April 2nd. Farmers & Merchants Bancorp's payout ratio is currently 38.02%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on FMAO. Piper Sandler initiated coverage on Farmers & Merchants Bancorp in a research report on Thursday, April 2nd. They issued a "neutral" rating and a $28.00 target price on the stock. Zacks Research lowered Farmers & Merchants Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, December 30th. Finally, Weiss Ratings raised Farmers & Merchants Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, April 6th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Farmers & Merchants Bancorp has a consensus rating of "Hold" and an average price target of $28.00.

Insider Activity at Farmers & Merchants Bancorp

In related news, insider Eric D. Faust sold 1,148 shares of the firm's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $25.16, for a total value of $28,883.68. Following the transaction, the insider owned 5,538 shares in the company, valued at approximately $139,336.08. This trade represents a 17.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 7.30% of the company's stock.

Hedge Funds Weigh In On Farmers & Merchants Bancorp

A number of hedge funds and other institutional investors have recently made changes to their positions in FMAO. Goelzer Investment Management Inc. lifted its stake in Farmers & Merchants Bancorp by 1,659.8% in the fourth quarter. Goelzer Investment Management Inc. now owns 485,064 shares of the financial services provider's stock valued at $11,991,000 after buying an additional 457,500 shares during the period. TrueMark Investments LLC acquired a new position in Farmers & Merchants Bancorp in the third quarter valued at approximately $559,000. Bridgeway Capital Management LLC lifted its stake in Farmers & Merchants Bancorp by 2.1% in the second quarter. Bridgeway Capital Management LLC now owns 19,257 shares of the financial services provider's stock valued at $487,000 after buying an additional 401 shares during the period. Jane Street Group LLC lifted its stake in Farmers & Merchants Bancorp by 186.8% in the fourth quarter. Jane Street Group LLC now owns 15,762 shares of the financial services provider's stock valued at $390,000 after buying an additional 33,916 shares during the period. Finally, AQR Capital Management LLC raised its position in shares of Farmers & Merchants Bancorp by 11.5% during the fourth quarter. AQR Capital Management LLC now owns 15,310 shares of the financial services provider's stock worth $378,000 after purchasing an additional 1,576 shares during the period. 23.96% of the stock is owned by institutional investors and hedge funds.

Farmers & Merchants Bancorp Company Profile

Farmers & Merchants Bancorp NASDAQ: FMAO is the bank holding company for Farmers & Merchants Bank of Central California, a community-focused institution headquartered in Los Banos, California. The bank traces its roots to 1916 and has grown to serve individuals, businesses and agricultural enterprises throughout the western San Joaquin Valley. Operating with a commitment to local decision-making, the company emphasizes personalized service and close ties to the communities in which it operates.

Through its banking subsidiary, Farmers & Merchants offers a comprehensive suite of financial products and services, including checking and savings accounts, certificates of deposit, online and mobile banking platforms, and merchant services.

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