Merchants Bancorp (NASDAQ:MBIN) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Merchants Bancorp received a downgrade from a "hold" to a "sell" rating by Wall Street Zen, indicating a shift in analyst sentiment regarding the stock's performance.
• Piper Sandler and Morgan Stanley have also adjusted their price targets for the stock, with targets now set at $41.00 and $34.00, respectively.
• The company reported $0.60 earnings per share, significantly missing analysts' expectations of $1.12 for the last quarter.

Wall Street Zen cut shares of Merchants Bancorp (NASDAQ:MBIN - Free Report) from a hold rating to a sell rating in a research report sent to investors on Saturday morning.

Several other brokerages have also recently commented on MBIN. Morgan Stanley cut their price target on shares of Merchants Bancorp from $40.00 to $34.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 29th. Raymond James Financial reissued an "outperform" rating and issued a $40.00 price target (down from $41.00) on shares of Merchants Bancorp in a report on Tuesday, July 29th. Finally, Piper Sandler reiterated an "overweight" rating and set a $41.00 price target (down previously from $42.00) on shares of Merchants Bancorp in a research report on Wednesday, July 30th.

Merchants Bancorp Stock Performance

Shares of NASDAQ MBIN traded down $0.14 during mid-day trading on Friday, hitting $30.68. The company had a trading volume of 110,014 shares, compared to its average volume of 177,658. The company has a debt-to-equity ratio of 2.49, a current ratio of 1.20 and a quick ratio of 0.88. The business's 50-day simple moving average is $33.09 and its 200-day simple moving average is $35.42. Merchants Bancorp has a 12 month low of $27.25 and a 12 month high of $47.94. The firm has a market cap of $1.41 billion, a P/E ratio of 6.76 and a beta of 1.30.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) last posted its quarterly earnings data on Monday, July 28th. The company reported $0.60 earnings per share for the quarter, missing the consensus estimate of $1.12 by ($0.52). Merchants Bancorp had a return on equity of 16.26% and a net margin of 18.06%. The company had revenue of $179.20 million during the quarter, compared to the consensus estimate of $161.10 million. As a group, analysts predict that Merchants Bancorp will post 5.54 earnings per share for the current fiscal year.

Merchants Bancorp Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 1st. Investors of record on Friday, June 13th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Friday, June 13th. Merchants Bancorp's dividend payout ratio is 8.79%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Cetera Investment Advisers raised its stake in Merchants Bancorp by 4.0% in the 4th quarter. Cetera Investment Advisers now owns 9,800 shares of the company's stock valued at $357,000 after purchasing an additional 381 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Merchants Bancorp by 4.0% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,292 shares of the company's stock valued at $375,000 after acquiring an additional 392 shares during the last quarter. Matrix Trust Co increased its position in Merchants Bancorp by 10.3% during the second quarter. Matrix Trust Co now owns 4,226 shares of the company's stock worth $140,000 after buying an additional 396 shares during the period. Victory Capital Management Inc. boosted its stake in shares of Merchants Bancorp by 3.8% in the first quarter. Victory Capital Management Inc. now owns 11,891 shares of the company's stock valued at $440,000 after buying an additional 432 shares in the last quarter. Finally, Signaturefd LLC boosted its stake in shares of Merchants Bancorp by 182.2% in the first quarter. Signaturefd LLC now owns 731 shares of the company's stock valued at $27,000 after buying an additional 472 shares in the last quarter. Hedge funds and other institutional investors own 24.57% of the company's stock.

Merchants Bancorp Company Profile

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family and healthcare facilities.