Independent Bank (NASDAQ:INDB) Shares Gap Down on Disappointing Earnings

Key Points

• Independent Bank shares gapped down after the company reported disappointing quarterly results, opening at $80.70 versus the prior close of $87.17.
• The bank posted EPS of $1.70, missing analyst estimates of $1.79, and revenue of $253.32 million, also below expectations of $257.50 million.
• Despite the earnings miss, Independent Bank recently paid a quarterly dividend of $0.64, equal to a 3.2% annualized yield.

Independent Bank Corp. (NASDAQ:INDB - Get Free Report)'s share price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $87.17, but opened at $80.70. Independent Bank shares last traded at $80.3540, with a volume of 86,960 shares traded.

The bank reported $1.70 EPS for the quarter, missing analysts' consensus estimates of $1.79 by ($0.09). The business had revenue of $253.32 million during the quarter, compared to analysts' expectations of $257.50 million. Independent Bank had a net margin of 19.14% and a return on equity of 8.66%.

Independent Bank Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 9th. Investors of record on Monday, June 29th were paid a $0.64 dividend. The ex-dividend date of this dividend was Monday, June 29th. This represents a $2.56 dividend on an annualized basis and a yield of 3.2%. Independent Bank's dividend payout ratio (DPR) is currently 50.79%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on INDB shares. Barclays increased their price objective on shares of Independent Bank from $80.00 to $82.00 and gave the company an "underweight" rating in a report on Tuesday, April 7th. Hovde Group assumed coverage on shares of Independent Bank in a research note on Friday, May 15th. They set an "outperform" rating and a $95.00 target price for the company. Piper Sandler upped their price target on shares of Independent Bank from $84.00 to $90.00 and gave the stock a "neutral" rating in a research report on Friday, June 26th. Keefe, Bruyette & Woods decreased their price target on shares of Independent Bank from $96.00 to $94.00 and set an "outperform" rating on the stock in a research note on Monday, April 20th. Finally, Independent Research set a $95.00 price objective on Independent Bank in a report on Friday, May 15th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $91.57.

Insiders Place Their Bets

In other Independent Bank news, Director Joseph C. Lerner sold 2,832 shares of Independent Bank stock in a transaction on Monday, May 18th. The shares were sold at an average price of $77.31, for a total transaction of $218,941.92. Following the sale, the director owned 16,215 shares of the company's stock, valued at $1,253,581.65. The trade was a 14.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Independent Bank

Several hedge funds and other institutional investors have recently modified their holdings of INDB. Rockland Trust Co. lifted its stake in Independent Bank by 84.1% in the 4th quarter. Rockland Trust Co. now owns 1,261,622 shares of the bank's stock worth $92,199,000 after purchasing an additional 576,183 shares in the last quarter. SG Americas Securities LLC purchased a new stake in shares of Independent Bank in the fourth quarter valued at approximately $17,271,000. Norges Bank acquired a new stake in shares of Independent Bank in the fourth quarter valued at approximately $46,117,000. Geode Capital Management LLC increased its holdings in shares of Independent Bank by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 1,232,467 shares of the bank's stock valued at $90,082,000 after purchasing an additional 20,278 shares during the last quarter. Finally, Deprince Race & Zollo Inc. lifted its position in Independent Bank by 1.3% during the fourth quarter. Deprince Race & Zollo Inc. now owns 1,046,475 shares of the bank's stock worth $76,476,000 after buying an additional 13,935 shares in the last quarter. 83.40% of the stock is owned by hedge funds and other institutional investors.

Independent Bank Stock Performance

The stock has a 50-day moving average of $81.03 and a 200 day moving average of $79.21. The stock has a market cap of $3.89 billion, a PE ratio of 15.95 and a beta of 0.77. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.22.

Independent Bank Company Profile

Independent Bank Group, Inc NASDAQ: INDB is a bank holding company headquartered in McKinney, Texas, that provides a range of financial services through its wholly owned subsidiary, Independent Bank. Tracing its roots to the late 19th century, the company has grown from a single community bank into a regional financial institution serving individuals, small businesses and commercial clients. Independent Bank Group became a bank holding company in 1983 and expanded its footprint through organic growth and strategic acquisitions.

The company's primary business activities encompass retail and commercial banking, including deposit products, consumer and business lending and credit services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.