Metropolitan Bank (NYSE:MCB) Announces Earnings Results

Key Points

• Metropolitan Bank reported earnings of $0.67 per share for the quarter, significantly missing analysts' expectations of $1.95 by ($1.28).
• The bank announced a quarterly dividend of $0.15 per share, with a payout ratio of 9.72% and a dividend yield of 0.8%.
• Increased institutional investment was noted, with Arrowstreet Capital boosting its holdings by 854.7% in the second quarter, suggesting strong confidence in the bank's future performance.

Metropolitan Bank (NYSE:MCB - Get Free Report) issued its earnings results on Thursday. The company reported $0.67 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.95 by ($1.28), Zacks reports. Metropolitan Bank had a return on equity of 10.69% and a net margin of 13.68%.

Metropolitan Bank Trading Down 1.3%

NYSE MCB traded down $1.01 during trading hours on Thursday, hitting $74.26. 128,189 shares of the company's stock were exchanged, compared to its average volume of 97,647. The stock has a 50-day simple moving average of $76.60 and a 200 day simple moving average of $69.52. Metropolitan Bank has a 1-year low of $47.08 and a 1-year high of $81.33. The firm has a market cap of $773.77 million, a price-to-earnings ratio of 12.04 and a beta of 1.11. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 0.23.

Metropolitan Bank Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 14th. Investors of record on Thursday, October 30th will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Thursday, October 30th. This represents a $0.60 annualized dividend and a yield of 0.8%. Metropolitan Bank's dividend payout ratio (DPR) is currently 9.72%.

Metropolitan Bank announced that its board has approved a stock repurchase program on Thursday, July 17th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to reacquire up to 6.4% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Metropolitan Bank

In related news, Director Dale C. Fredston sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $78.65, for a total transaction of $235,950.00. Following the completion of the sale, the director owned 14,168 shares of the company's stock, valued at $1,114,313.20. This trade represents a 17.47% 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. Also, EVP Scott Lublin sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, October 20th. The stock was sold at an average price of $74.36, for a total value of $371,800.00. Following the sale, the executive vice president directly owned 41,179 shares of the company's stock, valued at $3,062,070.44. This represents a 10.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,671 shares of company stock valued at $1,858,653 over the last ninety days. Insiders own 6.09% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCB. Arrowstreet Capital Limited Partnership boosted its holdings in Metropolitan Bank by 854.7% in the second quarter. Arrowstreet Capital Limited Partnership now owns 41,747 shares of the company's stock worth $2,922,000 after acquiring an additional 37,374 shares in the last quarter. Bank of America Corp DE boosted its holdings in Metropolitan Bank by 84.0% in the second quarter. Bank of America Corp DE now owns 34,709 shares of the company's stock worth $2,430,000 after acquiring an additional 15,850 shares in the last quarter. Jane Street Group LLC boosted its holdings in Metropolitan Bank by 152.4% in the second quarter. Jane Street Group LLC now owns 22,065 shares of the company's stock worth $1,545,000 after acquiring an additional 13,322 shares in the last quarter. Brevan Howard Capital Management LP bought a new position in Metropolitan Bank in the second quarter worth approximately $391,000. Finally, Raymond James Financial Inc. bought a new position in Metropolitan Bank in the second quarter worth approximately $377,000. Institutional investors own 79.83% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Zacks Research cut Metropolitan Bank from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 16th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Metropolitan Bank in a report on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods upped their target price on Metropolitan Bank from $81.00 to $95.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $82.67.

About Metropolitan Bank

Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area.

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