Mechanics Bancorp (NASDAQ:MCHB) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Mechanics Bancorp has a “Moderate Buy” consensus rating from five analysts: three recommend buying the stock and two advise holding it. The average 12-month price target is $17.125, modestly above its reported $16.71 price.
• Institutional investors own 74.71% of the company, with several firms—including Comerica Bank, California State Teachers’ Retirement System, and Fifth Third Bancorp—recently initiating positions.
• The company increased its quarterly dividend to $0.70, or $2.80 annually, implying a 16.8% dividend yield; however, its payout ratio is elevated at 227.64%.

Shares of Mechanics Bancorp (NASDAQ:MCHB - Get Free Report) have earned an average rating of "Moderate Buy" from the five research firms that are covering the stock, MarketBeat reports. Two equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $17.1250.

Several equities analysts have weighed in on MCHB shares. Stifel Nicolaus set a $17.00 price target on shares of Mechanics Bancorp in a report on Thursday, May 28th. Zacks Research upgraded shares of Mechanics Bancorp to a "hold" rating in a research report on Monday, June 1st. Weiss Ratings cut shares of Mechanics Bancorp from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Raymond James Financial started coverage on shares of Mechanics Bancorp in a research note on Thursday, May 28th. They set an "outperform" rating and a $17.00 target price on the stock. Finally, Keefe, Bruyette & Woods increased their price target on Mechanics Bancorp from $16.00 to $17.50 and gave the stock a "market perform" rating in a research note on Wednesday, August 5th.

Institutional Trading of Mechanics Bancorp

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Comerica Bank bought a new position in Mechanics Bancorp in the 3rd quarter worth approximately $34,000. California State Teachers Retirement System purchased a new stake in Mechanics Bancorp during the 1st quarter valued at approximately $39,000. Fifth Third Bancorp bought a new stake in shares of Mechanics Bancorp during the first quarter valued at approximately $39,000. Assetmark Inc. bought a new stake in shares of Mechanics Bancorp during the first quarter valued at approximately $51,000. Finally, BNP Paribas Financial Markets purchased a new position in shares of Mechanics Bancorp in the third quarter worth $48,000. Institutional investors own 74.71% of the company's stock.

Mechanics Bancorp Trading Up 0.4%

Mechanics Bancorp stock opened at $16.71 on Tuesday. The firm has a 50 day moving average of $15.79 and a 200 day moving average of $15.20. The firm has a market capitalization of $3.70 billion, a price-to-earnings ratio of 13.59 and a beta of 1.41. Mechanics Bancorp has a 12-month low of $12.52 and a 12-month high of $17.19. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.05.

Mechanics Bancorp Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Saturday, May 23rd were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 16.8%. This is a positive change from Mechanics Bancorp's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Friday, May 22nd. Mechanics Bancorp's dividend payout ratio is currently 227.64%.

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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