Merchants Bancorp (NASDAQ:MBIN) Downgraded by Zacks Research to "Hold"

Key Points

• Zacks Research downgraded Merchants Bancorp (MBIN) from a strong-buy to a hold; analysts’ consensus rating is "Hold" with an average price target of $50.50.
• Merchants beat the quarter with $1.25 EPS versus $1.16 expected and revenue of $175.25M (vs. $174.3M), and the stock trades at a PE of about 11.37.
• The board authorized a $100M share buyback (≈6.2% of shares outstanding), while company insiders collectively own 44.9% of the stock and one insider recently trimmed their stake.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday,Zacks.com reports.

MBIN has been the topic of several other research reports. Morgan Stanley lifted their target price on Merchants Bancorp from $42.00 to $51.00 and gave the company an "equal weight" rating in a research report on Monday, March 2nd. Piper Sandler reaffirmed an "overweight" rating and set a $58.00 target price on shares of Merchants Bancorp in a research report on Wednesday. Weiss Ratings lowered Merchants Bancorp from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 17th. Finally, Raymond James Financial reaffirmed an "outperform" rating and set a $51.00 price target on shares of Merchants Bancorp in a research report on Thursday. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Merchants Bancorp has a consensus rating of "Hold" and an average price target of $50.50.

Merchants Bancorp Trading Up 0.1%

Shares of Merchants Bancorp stock opened at $46.60 on Thursday. The company has a debt-to-equity ratio of 2.22, a quick ratio of 0.86 and a current ratio of 1.16. Merchants Bancorp has a 52 week low of $28.75 and a 52 week high of $50.26. The stock has a 50 day moving average price of $44.60 and a two-hundred day moving average price of $38.59. The stock has a market capitalization of $2.14 billion, a PE ratio of 11.37 and a beta of 1.15.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The company reported $1.25 EPS for the quarter, beating analysts' consensus estimates of $1.16 by $0.09. Merchants Bancorp had a return on equity of 13.60% and a net margin of 16.64%.The firm had revenue of $175.25 million during the quarter, compared to analysts' expectations of $174.30 million. As a group, equities analysts anticipate that Merchants Bancorp will post 5.23 earnings per share for the current fiscal year.

Merchants Bancorp announced that its Board of Directors has authorized a stock buyback plan on Wednesday, January 28th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 6.2% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other Merchants Bancorp news, insider Martin A. Schroeter sold 5,500 shares of the stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $46.06, for a total value of $253,330.00. Following the completion of the sale, the insider owned 10,881 shares in the company, valued at approximately $501,178.86. This trade represents a 33.58% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 44.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Thurston Springer Miller Herd & Titak Inc. bought a new position in Merchants Bancorp during the 4th quarter valued at approximately $34,000. State of Alaska Department of Revenue bought a new stake in shares of Merchants Bancorp in the 3rd quarter worth $57,000. Tower Research Capital LLC TRC boosted its stake in shares of Merchants Bancorp by 110.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,201 shares of the company's stock worth $73,000 after buying an additional 1,153 shares during the last quarter. Brevan Howard Capital Management LP boosted its stake in shares of Merchants Bancorp by 16.7% in the 2nd quarter. Brevan Howard Capital Management LP now owns 6,890 shares of the company's stock worth $228,000 after buying an additional 984 shares during the last quarter. Finally, Numerai GP LLC purchased a new position in shares of Merchants Bancorp in the 4th quarter worth $254,000. Institutional investors own 24.57% of the company's stock.

About Merchants Bancorp

Merchants Bancorp NASDAQ: MBIN is the bank holding company for Merchants Bank, a regional financial institution headquartered in Buffalo, New York. Through its network of branches and digital platforms, the company offers a range of banking services across western and central New York. Merchants Bancorp operates as a full‐service commercial bank, serving small and medium-sized businesses, professionals, families and individuals in its core markets.

The company's primary activities include deposit taking, commercial and consumer lending, mortgage origination, and treasury management services.

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