Independent Bank (NASDAQ:IBCP) Shares Cross Below 200 Day Moving Average - What's Next?

Key Points

• Independent Bank's share price fell below its two hundred day moving average, with a recent trading price of $31.35, indicating potential volatility in the stock.
• Analysts have set a new price target for Independent Bank at $37.00, maintaining a "neutral" rating, with a consensus average target price of $36.00.
• The company declared a quarterly dividend of $0.26 per share, representing a 3.3% yield, with a payout ratio of 33.88%.

Independent Bank Corporation (NASDAQ:IBCP - Get Free Report)'s share price crossed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $31.58 and traded as low as $31.19. Independent Bank shares last traded at $31.35, with a volume of 344,403 shares changing hands.

Wall Street Analyst Weigh In

Separately, DA Davidson raised their price target on Independent Bank from $35.00 to $37.00 and gave the company a "neutral" rating in a report on Friday, July 25th. Three analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $36.00.

Independent Bank Stock Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 0.92 and a quick ratio of 0.92. The stock has a 50-day simple moving average of $32.10 and a 200-day simple moving average of $31.57. The stock has a market cap of $650.92 million, a P/E ratio of 10.26 and a beta of 0.87.

Independent Bank (NASDAQ:IBCP - Get Free Report) last released its earnings results on Thursday, July 24th. The financial services provider reported $0.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.78 by $0.03. Independent Bank had a return on equity of 14.05% and a net margin of 20.31%.The firm had revenue of $55.94 million for the quarter, compared to analysts' expectations of $47.72 million. Research analysts forecast that Independent Bank Corporation will post 3.22 earnings per share for the current year.

Independent Bank Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 15th. Stockholders of record on Tuesday, August 5th were paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Tuesday, August 5th. Independent Bank's dividend payout ratio (DPR) is presently 33.88%.

Insider Transactions at Independent Bank

In related news, EVP Gavin A. Mohr acquired 2,000 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The shares were bought at an average cost of $29.64 per share, with a total value of $59,280.00. Following the completion of the purchase, the executive vice president directly owned 23,826 shares in the company, valued at $706,202.64. The trade was a 9.16% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Stefanie M. Kimball sold 1,400 shares of Independent Bank stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $32.64, for a total value of $45,696.00. Following the completion of the transaction, the executive vice president directly owned 62,389 shares in the company, valued at approximately $2,036,376.96. This represents a 2.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 5.68% of the company's stock.

Hedge Funds Weigh In On Independent Bank

Hedge funds and other institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted its stake in shares of Independent Bank by 2,062.9% in 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 during the period. Versant Capital Management Inc lifted its stake in shares of Independent Bank by 408.6% in the first quarter. Versant Capital Management Inc now owns 890 shares of the financial services provider's stock worth $27,000 after acquiring an additional 715 shares during the period. Ameritas Advisory Services LLC acquired a new position in shares of Independent Bank in the second quarter worth approximately $30,000. Point72 Asset Management L.P. acquired a new position in shares of Independent Bank in the fourth quarter worth approximately $59,000. Finally, US Bancorp DE lifted its stake in shares of Independent Bank by 342.4% in the first quarter. US Bancorp DE now owns 1,995 shares of the financial services provider's stock worth $61,000 after acquiring an additional 1,544 shares during the period. 79.43% of the stock is owned by institutional investors and hedge funds.

Independent Bank Company Profile

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services.