First Internet Bancorp (NASDAQ:INBK) Sees Significant Growth in Short Interest

Key Points

• Short interest jumped 26.5% in March to 153,446 shares (about 1.9% of shares outstanding) with a days-to-cover ratio of 3.0, signaling increased bearish positioning in INBK.
• First Internet Bancorp beat estimates with quarterly EPS of $0.64 (vs. $0.59) and revenue of $42.11M (vs. $32.8M), but the company still reported a negative net margin (-10.05%) and negative return on equity (-1.54%).
• The bank declared a $0.06 quarterly dividend (annualized $0.24, yield 1.2%; ex-dividend March 31, payable April 15), while institutional investors own roughly 65.5% of the stock and analysts' consensus rating is a "Reduce" with a $25.17 average price target.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) saw a large growth in short interest in March. As of March 13th, there was short interest totaling 153,446 shares, a growth of 26.5% from the February 26th total of 121,277 shares. Based on an average daily trading volume, of 50,422 shares, the days-to-cover ratio is currently 3.0 days. Approximately 1.9% of the company's shares are sold short.

First Internet Bancorp Stock Up 0.9%

Shares of NASDAQ:INBK traded up $0.18 during trading hours on Monday, hitting $20.06. The company's stock had a trading volume of 13,844 shares, compared to its average volume of 54,263. First Internet Bancorp has a 52 week low of $17.05 and a 52 week high of $28.51. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.88 and a quick ratio of 0.86. The company has a market capitalization of $174.86 million, a price-to-earnings ratio of -4.98 and a beta of 0.83. The firm's fifty day moving average price is $20.88 and its 200 day moving average price is $20.85.

First Internet Bancorp (NASDAQ:INBK - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The bank reported $0.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.59 by $0.05. The firm had revenue of $42.11 million for the quarter, compared to the consensus estimate of $32.80 million. First Internet Bancorp had a negative net margin of 10.05% and a negative return on equity of 1.54%. As a group, research analysts expect that First Internet Bancorp will post 4.11 EPS for the current year.

First Internet Bancorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be issued a $0.06 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.2%. First Internet Bancorp's dividend payout ratio (DPR) is currently -5.96%.

Institutional Investors Weigh In On First Internet Bancorp

A number of hedge funds have recently made changes to their positions in the stock. Empowered Funds LLC boosted its position in First Internet Bancorp by 7.1% during the fourth quarter. Empowered Funds LLC now owns 15,329 shares of the bank's stock valued at $320,000 after purchasing an additional 1,012 shares in the last quarter. XTX Topco Ltd purchased a new stake in shares of First Internet Bancorp during the fourth quarter valued at about $206,000. Quadrature Capital Ltd bought a new stake in shares of First Internet Bancorp in the 4th quarter valued at about $473,000. Millennium Management LLC grew its position in shares of First Internet Bancorp by 48.8% in the 4th quarter. Millennium Management LLC now owns 145,554 shares of the bank's stock worth $3,038,000 after buying an additional 47,715 shares during the last quarter. Finally, Bridgeway Capital Management LLC grew its position in shares of First Internet Bancorp by 2.3% in the 4th quarter. Bridgeway Capital Management LLC now owns 45,229 shares of the bank's stock worth $944,000 after buying an additional 1,012 shares during the last quarter. 65.46% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Wall Street Zen upgraded shares of First Internet Bancorp from a "sell" rating to a "hold" rating in a research note on Saturday, March 14th. Piper Sandler lowered their price target on First Internet Bancorp from $24.00 to $23.50 and set a "neutral" rating for the company in a report on Friday, January 30th. Hovde Group increased their price objective on First Internet Bancorp from $26.00 to $29.00 and gave the stock an "outperform" rating in a research note on Friday, January 30th. Zacks Research downgraded First Internet Bancorp from a "hold" rating to a "strong sell" rating in a report on Friday, January 30th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of First Internet Bancorp in a research report on Friday. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $25.17.

About First Internet Bancorp

First Internet Bancorp is the bank holding company for First Internet Bank of Indiana, a pioneer in digital banking in the United States. Established with a focus on online-only operations, the company offers fully integrated, web-based financial solutions without the overhead of physical branches. Headquartered in Indianapolis, Indiana, First Internet Bancorp leverages technology to deliver streamlined banking services to customers across the country.

The company's core offerings include a range of deposit products such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs) and individual retirement accounts (IRAs).

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