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

Merchants Bancorp logo with Finance background

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..
  • MarketBeat previews top five stocks to own in August.
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Shares of Merchants Bancorp (NASDAQ:MBIN - Get Free Report) dropped 9.2% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $31.78 and last traded at $31.84. Approximately 15,423 shares were traded during mid-day trading, a decline of 91% from the average daily 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 paid a $0.10 dividend. The ex-dividend date was Friday, June 13th. This represents a $0.40 annualized dividend and a yield of 1.29%. Merchants Bancorp's dividend payout ratio is currently 7.35%.

Wall Street Analysts Forecast Growth

MBIN has been the subject of several research analyst reports. Raymond James Financial reaffirmed an "outperform" rating and issued a $40.00 price objective (down from $41.00) on shares of Merchants Bancorp in a research note on Tuesday. Morgan Stanley cut their price target on Merchants Bancorp from $40.00 to $34.00 and set an "equal weight" rating for the company in a research note on Tuesday. Wall Street Zen cut shares of Merchants Bancorp from a "hold" rating to a "sell" rating in a research note on Friday, June 27th. Finally, Piper Sandler cut their target price on shares of Merchants Bancorp from $42.00 to $41.00 and set an "overweight" rating for the company in a research report on Wednesday.

Check Out Our Latest Report on MBIN

Hedge Funds Weigh In On Merchants Bancorp

Several large investors have recently made changes to their positions in MBIN. Cetera Investment Advisers raised its holdings in shares of Merchants Bancorp by 4.0% during the fourth quarter. Cetera Investment Advisers now owns 9,800 shares of the company's stock worth $357,000 after acquiring an additional 381 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Merchants Bancorp by 4.0% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,292 shares of the company's stock worth $375,000 after purchasing an additional 392 shares in the last quarter. Matrix Trust Co lifted its holdings in shares of Merchants Bancorp by 10.3% during the 2nd quarter. Matrix Trust Co now owns 4,226 shares of the company's stock valued at $140,000 after buying an additional 396 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of Merchants Bancorp by 3.8% in the 1st 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 increased its holdings in Merchants Bancorp by 182.2% in the first quarter. Signaturefd LLC now owns 731 shares of the company's stock worth $27,000 after buying an additional 472 shares during the last quarter. Institutional investors own 24.57% of the company's stock.

Merchants Bancorp Stock Down 0.7%

The stock has a market cap of $1.42 billion, a price-to-earnings ratio of 6.82 and a beta of 1.28. The business has a fifty day moving average of $33.26 and a 200 day moving average of $35.63. The company has a debt-to-equity ratio of 2.49, a current ratio of 1.20 and a quick ratio of 0.88.

Merchants Bancorp Company Profile

(Get Free Report)

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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