Mechanics Bancorp (NASDAQ:MCHB) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Mechanics Bancorp reported quarterly EPS of $0.27, beating the consensus estimate of $0.25 by $0.02. Net margin was 21.71%, while return on equity stood at 10.61%.
• The company increased its quarterly dividend to $0.70 per share from $0.40, implying an annualized dividend of $2.80 and a 17.4% yield. Its payout ratio reached 373.33%.
• Analysts gave the stock a consensus “Moderate Buy” rating with a $16.62 price target, while institutional investors and hedge funds own 74.71% of the shares.

Mechanics Bancorp (NASDAQ:MCHB - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.25 by $0.02, Zacks reports. Mechanics Bancorp had a net margin of 21.71% and a return on equity of 10.61%.

Mechanics Bancorp Price Performance

Shares of MCHB traded up $0.26 during trading hours on Wednesday, reaching $16.09. The company had a trading volume of 236,000 shares, compared to its average volume of 478,774. 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 has a 12-month low of $12.46 and a 12-month high of $16.68. The firm has a 50 day simple moving average of $15.40 and a 200-day simple moving average of $15.06. The company has a market capitalization of $3.56 billion, a price-to-earnings ratio of 21.47 and a beta of 1.41.

Mechanics Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Saturday, May 23rd were paid a dividend of $0.70 per share. This is a boost from Mechanics Bancorp's previous quarterly dividend of $0.40. 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 17.4%. Mechanics Bancorp's dividend payout ratio is currently 373.33%.

Institutional Investors Weigh In On Mechanics Bancorp

A number of hedge funds and other institutional investors have recently modified their holdings of MCHB. Rhumbline Advisers acquired a new stake in shares of Mechanics Bancorp in the 3rd quarter worth approximately $355,000. JPMorgan Chase & Co. acquired a new stake in Mechanics Bancorp in the third quarter valued at $118,000. Vanguard Group Inc. purchased a new position in shares of Mechanics Bancorp in the third quarter valued at $13,128,000. Victory Capital Management Inc. acquired a new position in shares of Mechanics Bancorp during the 3rd quarter worth $322,000. Finally, Dimensional Fund Advisors LP purchased a new stake in shares of Mechanics Bancorp in the 3rd quarter worth about $9,557,000. 74.71% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have recently weighed in on MCHB shares. Zacks Research raised Mechanics Bancorp to a "hold" rating in a report on Monday, June 1st. Stifel Nicolaus set a $17.00 price objective on Mechanics Bancorp in a report on Thursday, May 28th. Cantor Fitzgerald started coverage on shares of Mechanics Bancorp in a report on Friday, April 10th. They issued an "overweight" rating and a $17.00 target price on the stock. Raymond James Financial began coverage on shares of Mechanics Bancorp in a research note on Thursday, May 28th. They set an "outperform" rating and a $17.00 price target for the company. Finally, Weiss Ratings lowered shares of Mechanics Bancorp from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $16.62.

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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