Farmers & Merchants Bancorp (NASDAQ:FMAO) Share Price Crosses Below 200 Day Moving Average - Should You Sell?

Key Points

• Shares of Farmers & Merchants Bancorp crossed below their 200‑day moving average (200‑day = $25.67) during Wednesday trading, last at $25.24 with an intraday low of $24.94, a potential bearish technical signal.
• The company beat quarterly EPS expectations ($0.71 vs. $0.67) and reported stronger-than-expected revenue, with a P/E of about 10.4 and a market cap near $367 million, indicating solid underlying profitability.
• Management raised the dividend to an annualized $0.92 (a 3.6% yield, 38% payout ratio), while analysts hold an average "Hold" rating after recent downgrades and institutional investors own roughly 24% of the stock.

Farmers & Merchants Bancorp Inc. (NASDAQ:FMAO - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $25.67 and traded as low as $24.94. Farmers & Merchants Bancorp shares last traded at $25.24, with a volume of 27,974 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on FMAO. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Farmers & Merchants Bancorp in a report on Monday, December 29th. Zacks Research lowered Farmers & Merchants Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, December 30th. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of "Hold".

Farmers & Merchants Bancorp Price Performance

The company has a market cap of $367.49 million, a P/E ratio of 10.43 and a beta of 0.85. The firm's 50-day moving average is $26.40 and its two-hundred day moving average is $25.67. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.00 and a quick ratio of 1.00.

Farmers & Merchants Bancorp (NASDAQ:FMAO - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.71 EPS for the quarter, beating the consensus estimate of $0.67 by $0.04. Farmers & Merchants Bancorp had a net margin of 17.47% and a return on equity of 9.33%. The business had revenue of $32.45 million during the quarter, compared to analyst estimates of $27.30 million. Analysts anticipate that Farmers & Merchants Bancorp Inc. will post 1.82 earnings per share for the current year.

Farmers & Merchants Bancorp Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, January 20th. Investors of record on Monday, December 29th were issued a $0.23 dividend. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date of this dividend was Monday, December 29th. This is a positive change from Farmers & Merchants Bancorp's previous quarterly dividend of $0.23. Farmers & Merchants Bancorp's payout ratio is 38.02%.

Institutional Investors Weigh In On Farmers & Merchants Bancorp

Several large investors have recently added to or reduced their stakes in FMAO. Jane Street Group LLC bought a new stake in shares of Farmers & Merchants Bancorp in the 1st quarter valued at approximately $380,000. Los Angeles Capital Management LLC bought a new position in shares of Farmers & Merchants Bancorp during the 2nd quarter valued at approximately $367,000. Geode Capital Management LLC raised its holdings in Farmers & Merchants Bancorp by 1.5% during the 2nd quarter. Geode Capital Management LLC now owns 299,470 shares of the financial services provider's stock valued at $7,572,000 after buying an additional 4,527 shares during the period. Franklin Resources Inc. purchased a new stake in Farmers & Merchants Bancorp during the 2nd quarter valued at $210,000. Finally, Bridgeway Capital Management LLC lifted its position 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 worth $487,000 after buying an additional 401 shares during the last quarter. 23.96% of the stock is owned by institutional investors.

About Farmers & Merchants Bancorp

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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