Merchants Bancorp (NASDAQ:MBIN) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Merchants Bancorp reported quarterly EPS of $1.25, beating estimates by $0.09, with revenue of $175.25 million versus expected $174.30 million.
• The board authorized a $100.00 million share buyback (up to 6.2% of shares) and raised the quarterly dividend to $0.11 from $0.10 (annualized $0.44, yield ~0.9%).
• Analysts' consensus is a Moderate Buy with a $43.25 target and Morgan Stanley has raised its target to $51; the stock trades near $49.63 with a market cap of $2.28 billion and a P/E of 13.13.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $1.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.16 by $0.09, Zacks reports. The business had revenue of $175.25 million for the quarter, compared to analyst estimates of $174.30 million. Merchants Bancorp had a net margin of 16.02% and a return on equity of 13.17%.

Merchants Bancorp Stock Down 0.3%

Shares of NASDAQ:MBIN opened at $49.63 on Wednesday. The company has a current ratio of 1.16, a quick ratio of 0.86 and a debt-to-equity ratio of 2.22. The company has a market capitalization of $2.28 billion, a price-to-earnings ratio of 13.13 and a beta of 1.15. The business has a 50-day moving average price of $44.60 and a 200 day moving average price of $38.49. Merchants Bancorp has a 12-month low of $27.25 and a 12-month high of $50.26.

Merchants Bancorp Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were issued a dividend of $0.11 per share. The ex-dividend date was Friday, March 13th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Merchants Bancorp's previous quarterly dividend of $0.10. Merchants Bancorp's dividend payout ratio (DPR) is currently 11.64%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on MBIN. Zacks Research raised shares of Merchants Bancorp from a "hold" rating to a "strong-buy" rating in a report on Tuesday, February 3rd. Weiss Ratings downgraded Merchants Bancorp from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 17th. Finally, Morgan Stanley increased their target price on Merchants Bancorp from $42.00 to $51.00 and gave the company an "equal weight" rating in a report on Monday, March 2nd. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $43.25.

Merchants Bancorp announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 28th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 6.2% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Merchants Bancorp news, insider Martin A. Schroeter sold 5,500 shares of the business's 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 sale, the insider owned 10,881 shares of the company's stock, valued at $501,178.86. The trade was a 33.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 44.90% of the company's stock.

Hedge Funds Weigh In On Merchants Bancorp

Several institutional investors have recently modified their holdings of MBIN. Dimensional Fund Advisors LP raised its position in Merchants Bancorp by 3.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,656,898 shares of the company's stock valued at $56,433,000 after purchasing an additional 54,970 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Merchants Bancorp by 1.7% during the third quarter. Vanguard Group Inc. now owns 1,378,400 shares of the company's stock worth $43,833,000 after purchasing an additional 22,440 shares in the last quarter. Geode Capital Management LLC lifted its stake in Merchants Bancorp by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 715,394 shares of the company's stock valued at $24,371,000 after buying an additional 18,925 shares during the last quarter. State Street Corp raised its position in Merchants Bancorp by 4.7% in the 4th quarter. State Street Corp now owns 574,086 shares of the company's stock valued at $19,609,000 after purchasing an additional 25,823 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC boosted its stake in shares of Merchants Bancorp by 7.5% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 389,878 shares of the company's stock worth $12,398,000 after buying an additional 27,358 shares during the period. Institutional investors and hedge funds own 24.57% of the company's stock.

Merchants Bancorp Company Profile

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.