Maltese Capital Management LLC Makes New $13.50 Million Investment in Mechanics Bancorp $MCHB

Key Points

• Maltese Capital Management bought 1,014,105 shares of Mechanics Bancorp in Q3 worth about $13.5 million, making it the firm's 9th-largest holding and representing roughly 5.36% ownership of the company.
• Mechanics Bancorp declared a quarterly dividend of $0.40 per share (record/ex-dividend date Mar 9, payable Mar 19), an annualized $1.60 that implies a very high yield of about 11.1% and a payout ratio of 500%.
• Analyst coverage is mixed—consensus rating is "Hold" with a $14.50 target—while shares opened at $14.44, giving the company a market cap of roughly $3.19 billion and a P/E of 45.13.

Maltese Capital Management LLC purchased a new position in Mechanics Bancorp (NASDAQ:MCHB - Free Report) during the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 1,014,105 shares of the company's stock, valued at approximately $13,498,000. Mechanics Bancorp accounts for about 2.0% of Maltese Capital Management LLC's portfolio, making the stock its 9th largest holding. Maltese Capital Management LLC owned approximately 5.36% of Mechanics Bancorp as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the company. Comerica Bank purchased a new stake in Mechanics Bancorp during the third quarter worth $34,000. AlphaQuest LLC purchased a new stake in shares of Mechanics Bancorp in the 3rd quarter worth about $45,000. BNP Paribas Financial Markets acquired a new stake in Mechanics Bancorp in the 3rd quarter valued at about $48,000. Nisa Investment Advisors LLC acquired a new stake in Mechanics Bancorp in the 3rd quarter valued at about $57,000. Finally, Covestor Ltd purchased a new position in Mechanics Bancorp during the 3rd quarter valued at about $60,000. 74.71% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

MCHB has been the topic of a number of analyst reports. Weiss Ratings upgraded Mechanics Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, February 25th. Wall Street Zen downgraded Mechanics Bancorp from a "buy" rating to a "hold" rating in a research report on Sunday, November 30th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $14.50.

Mechanics Bancorp Stock Up 1.5%

Shares of NASDAQ:MCHB opened at $14.44 on Tuesday. The stock has a market capitalization of $3.19 billion, a P/E ratio of 45.13 and a beta of 1.55. The firm has a fifty day simple moving average of $14.90. Mechanics Bancorp has a 52 week low of $8.56 and a 52 week high of $16.02. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.82 and a current ratio of 0.82.

Mechanics Bancorp Announces Dividend

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 paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Monday, March 9th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 11.1%. Mechanics Bancorp's dividend payout ratio is currently 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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