Bank of America Corp DE Makes New $6.06 Million Investment in Merchants Bancorp $MBIN

Key Points

• Bank of America initiated a $6.06 million position in Merchants Bancorp during the second quarter, acquiring 121,142 shares, while other major institutions—including BlackRock—also added positions. Institutional investors own 24.57% of the company.
• Merchants Bancorp reported quarterly EPS of $1.48, beating estimates of $1.22, on revenue of $182.22 million versus expectations of $179 million. Analysts maintain a “Moderate Buy” consensus with an average price target of $55.50.
• The company declared a quarterly dividend of $0.11 per share, implying a 0.8% annual yield. Shares recently opened at $52.10, while an insider sold 9,000 shares for approximately $496,800.

Bank of America Corp DE bought a new position in shares of Merchants Bancorp (NASDAQ:MBIN - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 121,142 shares of the company's stock, valued at approximately $6,057,000. Bank of America Corp DE owned approximately 0.26% of Merchants Bancorp at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Merchants Bancorp during the second quarter worth approximately $205,260,000. Dimensional Fund Advisors LP lifted its stake in Merchants Bancorp by 6.2% in the first quarter. Dimensional Fund Advisors LP now owns 1,758,985 shares of the company's stock worth $75,476,000 after acquiring an additional 102,087 shares during the last quarter. Basswood Capital Management L.L.C. purchased a new position in Merchants Bancorp in the second quarter worth approximately $13,687,000. Bank of New York Mellon Corp acquired a new position in Merchants Bancorp during the 2nd quarter worth approximately $11,719,000. Finally, Royal Bank of Canada increased its position in shares of Merchants Bancorp by 3.3% in the 1st quarter. Royal Bank of Canada now owns 212,852 shares of the company's stock valued at $9,134,000 after purchasing an additional 6,899 shares during the last quarter. Hedge funds and other institutional investors own 24.57% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MBIN. Raymond James Financial lowered shares of Merchants Bancorp from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 1st. Piper Sandler reiterated an "overweight" rating and set a $64.00 target price on shares of Merchants Bancorp in a research note on Wednesday, July 29th. 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 target on Merchants Bancorp and gave the company an "equal weight" rating in a research note on Tuesday, September 8th. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Merchants Bancorp in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $55.50.

Merchants Bancorp Price Performance

Shares of NASDAQ:MBIN opened at $52.10 on Monday. The firm has a 50 day simple moving average of $52.78 and a 200-day simple moving average of $48.84. Merchants Bancorp has a twelve month low of $30.37 and a twelve month high of $56.87. The company has a current ratio of 1.21, a quick ratio of 0.89 and a debt-to-equity ratio of 2.32. The company has a market capitalization of $2.39 billion, a PE ratio of 10.46 and a beta of 1.14.

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

Merchants Bancorp Announces Dividend

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

Insider Activity

In other news, Director Julia Kaercher sold 9,000 shares of Merchants Bancorp stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $55.20, for a total transaction of $496,800.00. Following the sale, the director owned 727,103 shares in the company, valued at approximately $40,136,085.60. The trade was a 1.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 44.90% of the company's stock.

Merchants Bancorp Profile

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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