Independent Bank Corporation (NASDAQ:IBCP) Sees Large Drop in Short Interest

Key Points

• Short interest fell 23.5% in April to 492,836 shares (about 2.5% of float), giving a short-interest ratio of roughly 3.0 days based on average daily volume.
• Analyst consensus is a "Hold" with a $37 average price target, though Weiss Ratings upgraded the stock to a buy while DA Davidson and Piper Sandler hold neutral/adjusted targets near $37.
• Recent fundamentals: Independent Bank beat Q1 EPS estimates at $0.81 but missed revenue, announced a $0.28 quarterly dividend (3.3% yield), and trades around $33.47 with a P/E of ~9.97 and $689M market cap.

Independent Bank Corporation (NASDAQ:IBCP - Get Free Report) was the recipient of a large drop in short interest in the month of April. As of April 15th, there was short interest totaling 492,836 shares, a drop of 23.5% from the March 31st total of 644,457 shares. Based on an average trading volume of 162,254 shares, the short-interest ratio is presently 3.0 days. Approximately 2.5% of the company's shares are sold short.

Analyst Ratings Changes

IBCP has been the topic of several recent analyst reports. Weiss Ratings raised Independent Bank from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, January 12th. DA Davidson upped their target price on Independent Bank from $36.00 to $37.00 and gave the stock a "neutral" rating in a research report on Monday. Finally, Piper Sandler reduced their price target on shares of Independent Bank from $39.00 to $37.00 and set a "neutral" rating for the company in a research report on Monday. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $37.00.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of IBCP. State Street Corp increased its holdings in Independent Bank by 4.5% during the fourth quarter. State Street Corp now owns 657,276 shares of the financial services provider's stock worth $21,381,000 after buying an additional 28,516 shares during the last quarter. American Century Companies Inc. raised its position in shares of Independent Bank by 8.1% in the third quarter. American Century Companies Inc. now owns 643,540 shares of the financial services provider's stock valued at $19,934,000 after purchasing an additional 48,301 shares during the period. JPMorgan Chase & Co. raised its holdings in Independent Bank by 5.9% during the 3rd quarter. JPMorgan Chase & Co. now owns 445,911 shares of the financial services provider's stock valued at $13,812,000 after acquiring an additional 24,772 shares during the period. Millennium Management LLC lifted its position in shares of Independent Bank by 60.5% during the third quarter. Millennium Management LLC now owns 389,220 shares of the financial services provider's stock worth $12,056,000 after acquiring an additional 146,646 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in Independent Bank by 25.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 377,891 shares of the financial services provider's stock worth $12,293,000 after purchasing an additional 76,811 shares in the last quarter. Hedge funds and other institutional investors own 79.43% of the company's stock.

Independent Bank Stock Down 2.1%

IBCP stock traded down $0.71 during mid-day trading on Wednesday, reaching $33.47. 42,437 shares of the company traded hands, compared to its average volume of 167,957. The company has a quick ratio of 0.92, a current ratio of 0.93 and a debt-to-equity ratio of 0.23. The firm's 50 day moving average price is $34.09 and its 200 day moving average price is $33.51. The stock has a market cap of $689.06 million, a price-to-earnings ratio of 9.97 and a beta of 0.76. Independent Bank has a fifty-two week low of $29.63 and a fifty-two week high of $37.39.

Independent Bank (NASDAQ:IBCP - Get Free Report) last posted its earnings results on Thursday, April 23rd. The financial services provider reported $0.81 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.02. The company had revenue of $58.90 million for the quarter, compared to analyst estimates of $60.36 million. Independent Bank had a return on equity of 14.32% and a net margin of 22.02%. As a group, equities research analysts predict that Independent Bank will post 3.54 EPS for the current fiscal year.

Independent Bank Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Monday, May 4th will be issued a $0.28 dividend. The ex-dividend date is Monday, May 4th. This represents a $1.12 annualized dividend and a dividend yield of 3.3%. Independent Bank's dividend payout ratio is currently 33.43%.

About Independent Bank

Independent Bank Corporation NASDAQ: IBCP is a bank holding company headquartered in Grand Rapids, Michigan. Through its primary subsidiary, Independent Bank, the company offers a full range of commercial and personal banking services designed to meet the needs of individuals, small businesses and corporate clients. The company's offerings span traditional branch-based banking as well as digital and mobile platforms.

Independent Bank provides deposit products such as checking and savings accounts, money market accounts and certificates of deposit.

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