Gator Capital Management LLC Makes New $3.24 Million Investment in Mechanics Bancorp $MCHB

Key Points

• Gator Capital Management bought 243,136 shares (~$3.24 million) in Q3, now holding 1.29% of Mechanics Bancorp.
• Mechanics declared a quarterly dividend of $0.40 per share (annualized $1.60), implying a 11.3% yield but a 500% payout ratio, raising questions about sustainability.
• Analysts' consensus is a Hold with an average target of $14.50; the stock trades around $14.16 and has a 52-week range of $8.56–$16.02.

Gator Capital Management LLC bought a new stake in shares of Mechanics Bancorp (NASDAQ:MCHB - Free Report) during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 243,136 shares of the company's stock, valued at approximately $3,236,000. Gator Capital Management LLC owned 1.29% of Mechanics Bancorp as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the stock. AlphaQuest LLC purchased a new stake in Mechanics Bancorp during the third quarter valued at $45,000. BNP Paribas Financial Markets purchased a new position in Mechanics Bancorp in the third quarter worth about $48,000. Nisa Investment Advisors LLC bought a new stake in shares of Mechanics Bancorp during the 3rd quarter valued at about $57,000. Covestor Ltd bought a new stake in shares of Mechanics Bancorp during the 3rd quarter valued at about $60,000. Finally, JPMorgan Chase & Co. purchased a new stake in shares of Mechanics Bancorp during the 3rd quarter valued at about $118,000. Hedge funds and other institutional investors own 74.71% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently weighed in on MCHB shares. Wall Street Zen cut shares of Mechanics Bancorp from a "buy" rating to a "hold" rating in a research note on Sunday, November 30th. Weiss Ratings raised shares of Mechanics Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, February 25th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $14.50.

Mechanics Bancorp Stock Performance

NASDAQ:MCHB opened at $14.16 on Friday. The firm's 50-day moving average is $14.92. Mechanics Bancorp has a 52-week low of $8.56 and a 52-week high of $16.02. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $3.13 billion, a price-to-earnings ratio of 44.25 and a beta of 1.55.

Mechanics Bancorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Stockholders of record on Monday, March 9th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 11.3%. The ex-dividend date of this dividend is Monday, March 9th. Mechanics Bancorp's payout ratio is presently 500.00%.

About Mechanics Bancorp

HomeStreet, Inc operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences.

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