MetroCity Bankshares (NASDAQ:MCBS) Stock Price Down 6.7% Following Weak Earnings

Key Points

• MetroCity Bankshares shares fell 6.7% after the company reported quarterly earnings of $0.76 per share, below the $0.81 analyst consensus, while revenue of $49.8 million also missed expectations of $52.4 million.
• The company declared a quarterly dividend of $0.29 per share, equivalent to $1.16 annually and a 3.3% yield, with a 41.88% payout ratio.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and a $33 price target, while institutional investors own 25.33% of the stock.

MetroCity Bankshares, Inc. (NASDAQ:MCBS - Get Free Report)'s stock price fell 6.7% during mid-day trading on Monday following a dissappointing earnings announcement. The company traded as low as $33.11 and last traded at $34.11. Approximately 15,067 shares changed hands during trading, a decline of 83% from the average session volume of 88,714 shares. The stock had previously closed at $36.57.

The company reported $0.76 earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.05). MetroCity Bankshares had a net margin of 28.40% and a return on equity of 15.55%. The company had revenue of $49.80 million for the quarter, compared to analysts' expectations of $52.40 million.

MetroCity Bankshares Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Wednesday, July 29th will be paid a dividend of $0.29 per share. This represents a $1.16 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, July 29th. MetroCity Bankshares's dividend payout ratio is 41.88%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of MetroCity Bankshares in a report on Wednesday, July 8th. Keefe, Bruyette & Woods boosted their price objective on shares of MetroCity Bankshares from $32.00 to $33.00 and gave the company a "market perform" rating in a research report on Thursday, April 9th. Finally, Wall Street Zen downgraded shares of MetroCity Bankshares from a "buy" rating to a "hold" rating in a research note on Sunday, July 12th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, MetroCity Bankshares presently has a consensus rating of "Moderate Buy" and a consensus price target of $33.00.

Institutional Trading of MetroCity Bankshares

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCBS. Vanguard Group Inc. increased its position in MetroCity Bankshares by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 1,056,382 shares of the company's stock valued at $29,251,000 after purchasing an additional 3,580 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of MetroCity Bankshares by 4.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 498,788 shares of the company's stock valued at $14,300,000 after purchasing an additional 21,709 shares in the last quarter. State Street Corp increased its position in shares of MetroCity Bankshares by 1.3% during the fourth quarter. State Street Corp now owns 445,316 shares of the company's stock valued at $11,819,000 after buying an additional 5,543 shares during the period. The Manufacturers Life Insurance Company raised its stake in MetroCity Bankshares by 6.1% in the first quarter. The Manufacturers Life Insurance Company now owns 220,552 shares of the company's stock worth $6,323,000 after buying an additional 12,732 shares in the last quarter. Finally, HoldCo Asset Management LP purchased a new stake in MetroCity Bankshares in the fourth quarter worth about $2,671,000. Hedge funds and other institutional investors own 25.33% of the company's stock.

MetroCity Bankshares Stock Performance

The company has a 50-day simple moving average of $34.58 and a two-hundred day simple moving average of $31.18. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.20 and a current ratio of 1.21. The firm has a market capitalization of $994.50 million, a P/E ratio of 12.05 and a beta of 0.70.

About MetroCity Bankshares

MetroCity Bankshares, Inc is a bank holding company headquartered in Houston, Texas. Through its wholly owned subsidiary, MetroCity Bank, the company provides a range of banking and financial services to individuals and businesses. MetroCity Bankshares focuses on community banking, leveraging local expertise to support the financial needs of the greater Houston metropolitan area.

MetroCity Bank offers traditional deposit products, including checking and savings accounts, money market accounts and certificates of deposit.

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