Principal Financial Group Inc. Acquires New Holdings in Merchants Bancorp $MBIN

Key Points

• Principal Financial Group acquired 142,616 Merchants Bancorp shares worth approximately $6.12 million, giving it a 0.31% stake. Hedge funds and institutional investors collectively own 24.57% of MBIN.
• Analysts maintain a generally favorable outlook, with three Buy ratings and two Holds, an overall “Moderate Buy” consensus, and a consensus price target of $50.00.
• Merchants Bancorp exceeded quarterly expectations with $1.25 EPS versus the $1.16 estimate and $175.25 million in revenue. The company also declared a quarterly dividend of $0.11 per share, representing a 0.9% annualized yield.

Principal Financial Group Inc. bought a new position in shares of Merchants Bancorp (NASDAQ:MBIN - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 142,616 shares of the company's stock, valued at approximately $6,120,000. Principal Financial Group Inc. owned 0.31% of Merchants Bancorp at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of MBIN. Millennium Management LLC boosted its holdings in Merchants Bancorp by 135.6% in the 3rd quarter. Millennium Management LLC now owns 365,075 shares of the company's stock valued at $11,609,000 after purchasing an additional 210,151 shares during the period. Two Sigma Investments LP increased its holdings in shares of Merchants Bancorp by 1,509.5% in the third quarter. Two Sigma Investments LP now owns 175,754 shares of the company's stock worth $5,589,000 after purchasing an additional 164,834 shares during the period. First Trust Advisors LP increased its holdings in shares of Merchants Bancorp by 458.7% in the fourth quarter. First Trust Advisors LP now owns 141,145 shares of the company's stock worth $4,807,000 after purchasing an additional 115,881 shares during the period. Goldman Sachs Group Inc. raised its position in shares of Merchants Bancorp by 97.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 162,285 shares of the company's stock worth $5,527,000 after buying an additional 80,136 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Merchants Bancorp by 4.0% in the third quarter. Dimensional Fund Advisors LP now owns 1,601,928 shares of the company's stock worth $50,942,000 after buying an additional 61,622 shares in the last quarter. 24.57% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Morgan Stanley restated a "positive" rating and set a $49.00 target price (up from $46.00) on shares of Merchants Bancorp in a research report on Monday, June 29th. Zacks Research cut Merchants Bancorp from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 30th. Piper Sandler reaffirmed an "overweight" rating and issued a $58.00 price target on shares of Merchants Bancorp in a report on Wednesday, April 29th. Raymond James Financial downgraded Merchants Bancorp from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 1st. Finally, Weiss Ratings raised Merchants Bancorp from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, May 4th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $50.00.

Merchants Bancorp Stock Performance

NASDAQ MBIN opened at $48.37 on Tuesday. Merchants Bancorp has a 52-week low of $28.75 and a 52-week high of $51.47. The company has a debt-to-equity ratio of 2.68, a quick ratio of 0.89 and a current ratio of 1.26. The company has a market capitalization of $2.22 billion, a P/E ratio of 11.80 and a beta of 1.14. The company has a fifty day moving average of $48.26 and a 200-day moving average of $44.91.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) last announced its earnings results on Tuesday, April 28th. The company reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.09. The company had revenue of $175.25 million during the quarter, compared to analyst estimates of $174.30 million. Merchants Bancorp had a net margin of 16.64% and a return on equity of 13.40%. As a group, equities research analysts predict that Merchants Bancorp will post 5.15 EPS for the current fiscal year.

Merchants Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 15th were issued a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Monday, June 15th. Merchants Bancorp's dividend payout ratio is presently 10.73%.

Merchants Bancorp Company Profile

Merchants Bancorp NASDAQ: MBIN is the bank holding company for Merchants Bank, a regional financial institution headquartered in Buffalo, New York. Through its network of branches and digital platforms, the company offers a range of banking services across western and central New York. Merchants Bancorp operates as a full‐service commercial bank, serving small and medium-sized businesses, professionals, families and individuals in its core markets.

The company's primary activities include deposit taking, commercial and consumer lending, mortgage origination, and treasury management services.

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