Merchants Bancorp (NASDAQ:MBIN) Hits New 12-Month Low Following Weak Earnings

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) hit a new 52-week low on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $27.25 and last traded at $29.71, with a volume of 34042 shares changing hands. The stock had previously closed at $33.60.

The company reported $0.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.25 by ($0.32). The business had revenue of $287.20 million during the quarter, compared to analyst estimates of $169.00 million. Merchants Bancorp had a net margin of 22.08% and a return on equity of 22.86%.

Merchants Bancorp Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, April 1st. Investors of record on Friday, March 14th were paid a $0.10 dividend. The ex-dividend date of this dividend was Friday, March 14th. This represents a $0.40 dividend on an annualized basis and a yield of 1.34%. This is a boost from Merchants Bancorp's previous quarterly dividend of $0.09. Merchants Bancorp's payout ratio is presently 6.34%.

Wall Street Analysts Forecast Growth

MBIN has been the topic of several recent analyst reports. Raymond James reduced their price objective on shares of Merchants Bancorp from $53.00 to $45.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 2nd. Morgan Stanley decreased their price target on shares of Merchants Bancorp from $47.00 to $45.00 and set an "equal weight" rating for the company in a research note on Thursday, March 13th. Finally, Piper Sandler lifted their price target on shares of Merchants Bancorp from $52.50 to $56.50 and gave the company an "overweight" rating in a research note on Thursday, January 30th.

Insider Buying and Selling

In related news, insider Scott A. Evans sold 25,000 shares of the firm's stock in a transaction that occurred on Wednesday, January 29th. The stock was sold at an average price of $43.10, for a total transaction of $1,077,500.00. Following the completion of the sale, the insider now owns 27,606 shares of the company's stock, valued at $1,189,818.60. This trade represents a 47.52 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 34.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Merchants Bancorp

Hedge funds and other institutional investors have recently made changes to their positions in the business. Advisor Resource Council bought a new stake in shares of Merchants Bancorp in the 1st quarter worth approximately $830,000. Sowell Financial Services LLC bought a new stake in Merchants Bancorp during the first quarter valued at approximately $318,000. Harbor Capital Advisors Inc. raised its position in Merchants Bancorp by 26.8% during the first quarter. Harbor Capital Advisors Inc. now owns 6,641 shares of the company's stock valued at $246,000 after purchasing an additional 1,402 shares in the last quarter. Matrix Trust Co lifted its stake in Merchants Bancorp by 45.0% during the first quarter. Matrix Trust Co now owns 3,830 shares of the company's stock worth $142,000 after purchasing an additional 1,188 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in shares of Merchants Bancorp by 4,443.0% in the 1st quarter. GAMMA Investing LLC now owns 7,178 shares of the company's stock worth $266,000 after purchasing an additional 7,020 shares in the last quarter. 24.57% of the stock is owned by institutional investors.

Merchants Bancorp Price Performance

The stock has a market capitalization of $1.37 billion, a P/E ratio of 4.71 and a beta of 1.15. The firm has a 50-day moving average price of $36.41 and a 200 day moving average price of $38.60. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.85 and a current ratio of 1.15.

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.

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