Mechanics Bancorp (NASDAQ:MCHB) Sets New 12-Month High - Still a Buy?

Key Points

• Mechanics Bancorp hit a new 52-week high, trading as high as $16.57 after rising about 2.7% on the session.
• Wall Street sentiment is mixed but still constructive, with a Moderate Buy consensus and an average price target of $16.62; Raymond James and Stifel both set $17 targets, while KBW is more cautious at $15.50.
• The company recently raised its quarterly dividend to $0.70 from $0.40, lifting the annualized payout to $2.80 and implying a very high 16.9% dividend yield.

Mechanics Bancorp (NASDAQ:MCHB - Get Free Report) shares reached a new 52-week high on Thursday . The stock traded as high as $16.57 and last traded at $16.5750, with a volume of 271948 shares traded. The stock had previously closed at $16.14.

Analysts Set New Price Targets

A number of brokerages have commented on MCHB. Zacks Research upgraded Mechanics Bancorp to a "hold" rating in a research note on Monday, June 1st. Raymond James Financial began coverage on Mechanics Bancorp in a report on Thursday, May 28th. They issued an "outperform" rating and a $17.00 price target on the stock. Weiss Ratings upgraded Mechanics Bancorp from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, July 8th. Stifel Nicolaus set a $17.00 target price on Mechanics Bancorp in a research report on Thursday, May 28th. Finally, Keefe, Bruyette & Woods cut their target price on Mechanics Bancorp from $16.00 to $15.50 and set a "market perform" rating on the stock in a research note on Monday, May 4th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Mechanics Bancorp has a consensus rating of "Moderate Buy" and an average target price of $16.62.

Mechanics Bancorp Stock Up 2.7%

The firm has a market cap of $3.67 billion, a price-to-earnings ratio of 22.09 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 stock's 50 day moving average is $15.13 and its 200 day moving average is $14.98.

Mechanics Bancorp Increases Dividend

The company 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. This represents a $2.80 annualized dividend and a dividend yield of 16.9%. This is an increase from Mechanics Bancorp's previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Friday, May 22nd. Mechanics Bancorp's payout ratio is 373.33%.

Institutional Trading of Mechanics Bancorp

A number of hedge funds have recently made changes to their positions in MCHB. Mechanics Bank Trust Department acquired a new position in shares of Mechanics Bancorp in the 4th quarter worth approximately $50,082,000. Acuitas Investments LLC bought a new position in shares of Mechanics Bancorp during the 3rd quarter worth approximately $5,102,000. Precision Wealth Strategies LLC acquired a new stake in Mechanics Bancorp in the 4th quarter valued at $659,000. UBS Group AG boosted its stake in Mechanics Bancorp by 223.6% in the 4th quarter. UBS Group AG now owns 186,869 shares of the company's stock valued at $2,734,000 after buying an additional 129,118 shares in the last quarter. Finally, Simcoe Capital LLC bought a new stake in Mechanics Bancorp in the fourth quarter valued at $5,008,000. 74.71% of the stock is owned by hedge funds and other institutional investors.

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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