Independent Bank (NASDAQ:IBCP) Price Target Raised to $38.00

Key Points

• Keefe, Bruyette & Woods raised its price target on Independent Bank to $38 from $37 while keeping a market perform rating. The new target implies only modest upside from the stock’s current level.
• Independent Bank’s latest quarterly results beat expectations, with EPS of $0.90 and revenue of $63.24 million coming in above estimates. The company also posted stronger profitability metrics, including a net margin of 22.02% and ROE of 14.15%.
• Analyst sentiment remains mixed overall: the stock has an average Hold rating and a consensus price target of $38.25. Recent reports included both upgrades and target increases from other firms, but also neutral ratings from some analysts.

Independent Bank (NASDAQ:IBCP - Get Free Report) had its target price raised by stock analysts at Keefe, Bruyette & Woods from $37.00 to $38.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage presently has a "market perform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price target points to a potential upside of 0.76% from the company's current price.

A number of other brokerages have also recently issued reports on IBCP. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Independent Bank in a research note on Tuesday, June 9th. Hovde Group upgraded Independent Bank from a "market perform" rating to an "outperform" rating and increased their target price for the company from $36.00 to $41.00 in a report on Friday, July 10th. DA Davidson raised their price target on Independent Bank from $36.00 to $37.00 and gave the stock a "neutral" rating in a research report on Monday, April 27th. Finally, Piper Sandler decreased their price target on Independent Bank from $39.00 to $37.00 and set a "neutral" rating on the stock in a research note on Monday, April 27th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $38.25.

Independent Bank Price Performance

Shares of IBCP stock traded up $1.06 during trading hours on Friday, hitting $37.71. 91,807 shares of the company's stock were exchanged, compared to its average volume of 172,971. The company has a market capitalization of $777.29 million, a PE ratio of 11.27 and a beta of 0.71. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 0.13. Independent Bank has a 12-month low of $29.63 and a 12-month high of $39.17. The business's 50 day simple moving average is $35.08 and its 200-day simple moving average is $34.57.

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 22.02% and a return on equity of 14.15%. During the same quarter in the prior year, the company earned $0.81 EPS. On average, equities research analysts anticipate that Independent Bank will post 3.55 earnings per share for the current year.

Insider Buying and Selling at Independent Bank

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of IBCP. Parallel Advisors LLC grew its position in shares of Independent Bank by 935.3% in the 1st quarter. Parallel Advisors LLC now owns 1,201 shares of the financial services provider's stock worth $40,000 after buying an additional 1,085 shares during the last quarter. Bank of America Corp DE lifted its stake in Independent Bank by 50.6% in the first quarter. Bank of America Corp DE now owns 91,106 shares of the financial services provider's stock worth $3,034,000 after acquiring an additional 30,622 shares during the period. Amundi purchased a new stake in Independent Bank in the first quarter worth $283,000. California State Teachers Retirement System boosted its holdings in Independent Bank by 28.6% in the first quarter. California State Teachers Retirement System now owns 24,733 shares of the financial services provider's stock valued at $824,000 after acquiring an additional 5,501 shares in the last quarter. Finally, Royal Bank of Canada raised its holdings in Independent Bank by 138.4% in the 1st quarter. Royal Bank of Canada now owns 1,297 shares of the financial services provider's stock worth $43,000 after purchasing an additional 753 shares in the last quarter. Institutional investors own 79.43% of the company's stock.

Independent Bank News Summary

Here are the key news stories impacting Independent Bank this week:

• Positive Sentiment: Independent Bank’s Q2 results topped Wall Street estimates, with EPS of $0.90 versus expectations around $0.84-$0.85 and revenue above forecasts. Article Title
• Positive Sentiment: Net interest income rose year over year and the net interest margin improved to 3.71%, showing the bank is earning more on its core lending business. Article Title
• Positive Sentiment: Loan growth and deposit growth were both solid, and the company also completed its HCB Financial acquisition, which could expand its market presence and future earnings power. Article Title
• Neutral Sentiment: Management said integration of HCB is underway, with full system conversion expected in November, which keeps the acquisition story in focus for the next few months. Article Title
• Negative Sentiment: Higher non-interest expense, a larger provision for credit losses, and a jump in non-performing loans could temper enthusiasm by raising questions about costs and asset quality. Article Title

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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