Mechanics Bancorp (NASDAQ:MCHB) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Mechanics Bancorp has a consensus analyst rating of “Moderate Buy” from five research firms, with an average 1-year price target of $16.63.
• The stock recently traded up 3.1% to $16.64, near its 52-week high of $16.68, and has a market cap of about $3.68 billion.
• The company also raised its quarterly dividend to $0.70 per share from $0.40, implying an annualized dividend of $2.80 and a yield of 16.8%.

Mechanics Bancorp (NASDAQ:MCHB - Get Free Report) has earned a consensus rating of "Moderate Buy" from the five research firms that are covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $16.6250.

Several equities research analysts have weighed in on MCHB shares. Weiss Ratings upgraded Mechanics Bancorp from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 8th. Zacks Research raised Mechanics Bancorp to a "hold" rating in a research note on Monday, June 1st. Stifel Nicolaus set a $17.00 price target on shares of Mechanics Bancorp in a report on Thursday, May 28th. Raymond James Financial initiated coverage on shares of Mechanics Bancorp in a report on Thursday, May 28th. They issued an "outperform" rating and a $17.00 price target on the stock. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Mechanics Bancorp from $16.00 to $15.50 and set a "market perform" rating for the company in a report on Monday, May 4th.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Mechanics Bank Trust Department purchased a new stake in Mechanics Bancorp in the fourth quarter worth about $50,082,000. Geode Capital Management LLC lifted its holdings in shares of Mechanics Bancorp by 167.3% during the fourth quarter. Geode Capital Management LLC now owns 1,368,368 shares of the company's stock valued at $20,024,000 after purchasing an additional 856,476 shares during the last quarter. GW&K Investment Management LLC boosted its position in shares of Mechanics Bancorp by 36.2% in the 4th quarter. GW&K Investment Management LLC now owns 1,233,288 shares of the company's stock worth $18,043,000 after purchasing an additional 327,908 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of Mechanics Bancorp by 1.3% in the 1st quarter. Bank of New York Mellon Corp now owns 1,098,400 shares of the company's stock worth $16,201,000 after buying an additional 13,648 shares during the last quarter. Finally, Mendon Capital Advisors Corp purchased a new stake in shares of Mechanics Bancorp in the 3rd quarter worth approximately $14,043,000. 74.71% of the stock is owned by hedge funds and other institutional investors.

Mechanics Bancorp Trading Up 3.1%

Shares of MCHB opened at $16.64 on Friday. The stock has a market capitalization of $3.68 billion, a P/E ratio of 22.19 and a beta of 1.41. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.05. The firm has a fifty day simple moving average of $15.18 and a two-hundred day simple moving average of $14.99. Mechanics Bancorp has a twelve month low of $12.46 and a twelve month high of $16.68.

Mechanics Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Saturday, May 23rd were given a $0.70 dividend. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 16.8%. This is a boost from Mechanics Bancorp's previous quarterly dividend of $0.40. Mechanics Bancorp's payout ratio is currently 373.33%.

Mechanics Bancorp Company Profile

HomeStreet, Inc operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences.

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