Merchants Bancorp (NASDAQ:MBIN) Stock Price Down 9.2% After Earnings Miss

Key Points

• Merchants Bancorp shares dropped 9.2% after the company reported earnings per share of $0.60, missing analysts' estimates of $1.12 by $0.52.
• The company announced a quarterly dividend of $0.10 per share, with a payout ratio of 7.35% and an annualized dividend yield of 1.24%.
• Institutional investors now own 24.57% of Merchants Bancorp's stock, with notable investments from firms like Raymond James Financial and JPMorgan Chase & Co..

Merchants Bancorp (NASDAQ:MBIN - Get Free Report)'s share price fell 9.2% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $31.78 and last traded at $31.84. 15,423 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 171,396 shares. The stock had previously closed at $35.06.

The company reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.12 by ($0.52). Merchants Bancorp had a net margin of 18.06% and a return on equity of 16.26%. The company had revenue of $179.20 million during the quarter, compared to analyst estimates of $161.10 million.

Merchants Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 1st. Shareholders of record on Friday, June 13th were given a dividend of $0.10 per share. The ex-dividend date was Friday, June 13th. This represents a $0.40 dividend on an annualized basis and a yield of 1.4%. Merchants Bancorp's dividend payout ratio is presently 8.79%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on MBIN shares. Piper Sandler restated an "overweight" rating and set a $41.00 price objective (down previously from $42.00) on shares of Merchants Bancorp in a research report on Wednesday. Morgan Stanley lowered 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 note on Tuesday. Raymond James Financial reaffirmed an "outperform" rating and set a $40.00 price target (down from $41.00) on shares of Merchants Bancorp in a research note on Tuesday. Finally, Wall Street Zen cut shares of Merchants Bancorp from a "hold" rating to a "sell" rating in a research note on Saturday.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Envestnet Asset Management Inc. purchased a new position in Merchants Bancorp in the 2nd quarter valued at about $229,000. AlphaQuest LLC lifted its holdings in Merchants Bancorp by 278.6% in the 2nd quarter. AlphaQuest LLC now owns 11,234 shares of the company's stock valued at $372,000 after purchasing an additional 8,267 shares in the last quarter. Denali Advisors LLC lifted its holdings in Merchants Bancorp by 17.8% in the 2nd quarter. Denali Advisors LLC now owns 200,510 shares of the company's stock valued at $6,631,000 after purchasing an additional 30,356 shares in the last quarter. CWM LLC lifted its holdings in Merchants Bancorp by 121.6% in the 2nd quarter. CWM LLC now owns 3,010 shares of the company's stock valued at $100,000 after purchasing an additional 1,652 shares in the last quarter. Finally, Inspire Investing LLC purchased a new position in Merchants Bancorp in the 2nd quarter valued at about $390,000. 24.57% of the stock is currently owned by hedge funds and other institutional investors.

Merchants Bancorp Stock Performance

The company has a market capitalization of $1.34 billion, a PE ratio of 6.41 and a beta of 1.30. The company has a debt-to-equity ratio of 2.49, a quick ratio of 0.88 and a current ratio of 1.20. The stock's fifty day simple moving average is $33.16 and its 200-day simple moving average is $35.55.

About Merchants Bancorp

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.