Independent Bank Corporation (NASDAQ:IBCP) Short Interest Up 37.2% in March

Key Points

• Short interest jumped 37.2% in March, rising to 644,457 shares (about 3.3% of shares outstanding) with a days-to-cover ratio of 2.2, signaling increased bearish positioning on IBCP.
• Dividend raised to $0.28 quarterly (annualized $1.12) for a 3.3% yield and a 34.15% payout ratio, reflecting a shareholder-friendly cash return.
• Recent results showed a quarterly EPS beat ($0.89 vs. $0.83) but a revenue shortfall ($46.8M vs. $50.52M); the stock trades at a P/E of 10.48 with a MarketBeat consensus rating of "Hold" and a $36.67 target.

Independent Bank Corporation (NASDAQ:IBCP - Get Free Report) was the target of a significant increase in short interest in the month of March. As of March 31st, there was short interest totaling 644,457 shares, an increase of 37.2% from the March 15th total of 469,885 shares. Based on an average daily volume of 297,572 shares, the days-to-cover ratio is presently 2.2 days. Approximately 3.3% of the shares of the stock are short sold.

Independent Bank Price Performance

IBCP traded down $0.38 on Wednesday, hitting $34.36. 129,548 shares of the company's stock were exchanged, compared to its average volume of 241,164. Independent Bank has a fifty-two week low of $29.37 and a fifty-two week high of $37.39. The stock has a market cap of $707.47 million, a price-to-earnings ratio of 10.48 and a beta of 0.76. The firm has a 50-day moving average price of $34.54 and a 200-day moving average price of $33.31. The company has a current ratio of 0.93, a quick ratio of 0.92 and a debt-to-equity ratio of 0.23.

Independent Bank (NASDAQ:IBCP - Get Free Report) last issued its earnings results on Thursday, January 22nd. The financial services provider reported $0.89 EPS for the quarter, beating analysts' consensus estimates of $0.83 by $0.06. The business had revenue of $46.80 million during the quarter, compared to analysts' expectations of $50.52 million. Independent Bank had a net margin of 21.73% and a return on equity of 14.20%. As a group, equities analysts anticipate that Independent Bank will post 3.22 earnings per share for the current year.

Independent Bank Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Tuesday, February 3rd were issued a $0.28 dividend. This represents a $1.12 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Tuesday, February 3rd. This is a positive change from Independent Bank's previous quarterly dividend of $0.26. Independent Bank's payout ratio is currently 34.15%.

Institutional Investors Weigh In On Independent Bank

A number of large investors have recently made changes to their positions in IBCP. State of Alaska Department of Revenue acquired a new stake in shares of Independent Bank in the third quarter valued at approximately $25,000. EverSource Wealth Advisors LLC grew its holdings in Independent Bank by 2,062.9% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 757 shares of the financial services provider's stock valued at $25,000 after buying an additional 722 shares in the last quarter. Larson Financial Group LLC acquired a new stake in shares of Independent Bank in the 4th quarter worth $26,000. Aster Capital Management DIFC Ltd purchased a new position in shares of Independent Bank during the 4th quarter worth $27,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in shares of Independent Bank during the 4th quarter worth $29,000. 79.43% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

IBCP has been the subject of several research analyst reports. DA Davidson restated a "neutral" rating and set a $36.00 price target on shares of Independent Bank in a research report on Friday, March 20th. Piper Sandler boosted their price objective on Independent Bank from $36.00 to $39.00 and gave the stock a "neutral" rating in a research note on Monday, January 26th. Finally, Weiss Ratings raised Independent Bank from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, January 12th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Independent Bank has an average rating of "Hold" and a consensus target price of $36.67.

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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