Independent Bank (NASDAQ:IBCP) Hits New 52-Week High - Still a Buy?

Key Points

• Independent Bank shares reached a new 52-week high of $39.24 and last traded near $38.91, with the stock up from its prior close of $38.20.
• Analyst sentiment remains mixed: two analysts rate the stock a Buy and three a Hold, producing an overall “Hold” consensus and an average price target of $39.50.
• The bank reported a quarterly earnings beat, with EPS of $0.90 versus estimates of $0.84 and revenue of $63.24 million versus expectations of $60.08 million. It also declared a quarterly dividend of $0.28, equal to a 2.9% annualized yield.

Independent Bank Corporation (NASDAQ:IBCP - Get Free Report)'s share price hit a new 52-week high on Monday . The company traded as high as $39.24 and last traded at $38.9080, with a volume of 7493 shares changing hands. The stock had previously closed at $38.20.

Analysts Set New Price Targets

Several research firms have recently issued reports on IBCP. DA Davidson boosted their price objective on shares of Independent Bank from $36.00 to $37.00 and gave the stock a "neutral" rating in a report on Monday, April 27th. Piper Sandler increased their target price on shares of Independent Bank from $37.00 to $42.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. Hovde Group raised Independent Bank from a "market perform" rating to an "outperform" rating and lifted their target price for the stock from $36.00 to $41.00 in a research report on Friday, July 10th. Weiss Ratings restated a "buy (b)" rating on shares of Independent Bank in a research note on Tuesday, June 9th. Finally, Keefe, Bruyette & Woods upped their price target on Independent Bank from $37.00 to $38.00 and gave the company a "market perform" rating in a report on Friday, July 24th. Two analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $39.50.

Independent Bank Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 0.92 and a quick ratio of 0.92. The stock's 50 day simple moving average is $35.64 and its two-hundred day simple moving average is $34.79. The stock has a market cap of $791.18 million, a price-to-earnings ratio of 11.16 and a beta of 0.71.

Independent Bank (NASDAQ:IBCP - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.84 by $0.06. The company had revenue of $63.24 million during the quarter, compared to analysts' expectations of $60.08 million. Independent Bank had a net margin of 22.32% and a return on equity of 14.31%. During the same quarter in the prior year, the company posted $0.81 EPS. On average, analysts forecast that Independent Bank Corporation will post 3.59 earnings per share for the current fiscal year.

Independent Bank Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Tuesday, August 4th will be paid a $0.28 dividend. The ex-dividend date of this dividend is Tuesday, August 4th. This represents a $1.12 dividend on an annualized basis and a yield of 2.9%. Independent Bank's payout ratio is presently 32.56%.

Insider Transactions at Independent Bank

In other Independent Bank news, EVP Stefanie M. Kimball sold 1,400 shares of the firm's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $34.41, for a total transaction of $48,174.00. Following the completion of the transaction, the executive vice president owned 64,327 shares in the company, valued at $2,213,492.07. This trade represents a 2.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 5.91% of the stock is owned by company insiders.

Hedge Funds Weigh In On Independent Bank

Hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its stake in Independent Bank by 2,062.9% during the second quarter. EverSource Wealth Advisors LLC now owns 757 shares of the financial services provider's stock worth $25,000 after acquiring 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 valued at $26,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Independent Bank in the 4th quarter valued at $27,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Independent Bank in the 4th quarter worth about $29,000. Finally, Harbour Investments Inc. grew its holdings in shares of Independent Bank by 45.4% in the 4th quarter. Harbour Investments Inc. now owns 961 shares of the financial services provider's stock worth $31,000 after purchasing an additional 300 shares during the last quarter. 79.43% of the stock is owned by institutional investors and hedge funds.

Independent Bank Company Profile

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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