Metropolitan Bank (NYSE:MCB) Shares Gap Down Following Weak Earnings

Key Points

• Metropolitan Bank shares gapped down after the company reported weaker-than-expected quarterly earnings, opening at $87.30 versus a prior close of $99.07 and later trading around $89.45.
• The bank posted EPS of $1.54, well below the $2.30 consensus estimate, while revenue of $93.01 million came in slightly under expectations.
• Metropolitan Bank raised its quarterly dividend to $0.35 per share from $0.25, boosting the annualized payout to $1.40 and implying a 1.6% yield.

Metropolitan Bank Holding Corp. (NYSE:MCB - Get Free Report)'s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $99.07, but opened at $87.30. Metropolitan Bank shares last traded at $89.4520, with a volume of 70,193 shares trading hands.

The company reported $1.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.30 by ($0.76). Metropolitan Bank had a net margin of 15.89% and a return on equity of 10.95%. The company had revenue of $93.01 million during the quarter, compared to the consensus estimate of $93.39 million.

Metropolitan Bank Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st will be paid a dividend of $0.35 per share. This is an increase from Metropolitan Bank's previous quarterly dividend of $0.25. This represents a $1.40 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, July 31st. Metropolitan Bank's payout ratio is 12.32%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on MCB. UBS Group assumed coverage on Metropolitan Bank in a report on Thursday, April 16th. They issued a "neutral" rating and a $97.00 price target on the stock. Wall Street Zen upgraded Metropolitan Bank from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Keefe, Bruyette & Woods raised their price objective on Metropolitan Bank from $105.00 to $109.00 and gave the company an "outperform" rating in a research report on Thursday, April 23rd. Finally, Weiss Ratings upgraded Metropolitan Bank from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, Metropolitan Bank currently has an average rating of "Buy" and a consensus target price of $103.00.

Insider Buying and Selling

In other Metropolitan Bank news, Director Robert C. Patent sold 10,000 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $96.41, for a total value of $964,100.00. Following the sale, the director directly owned 86,185 shares of the company's stock, valued at approximately $8,309,095.85. This represents a 10.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Nick Rosenberg sold 1,807 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $100.42, for a total value of $181,458.94. Following the completion of the sale, the executive vice president owned 22,202 shares of the company's stock, valued at $2,229,524.84. This trade represents a 7.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 19,897 shares of company stock valued at $1,874,352 over the last quarter. 5.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Metropolitan Bank

A number of institutional investors and hedge funds have recently bought and sold shares of MCB. Adage Capital Partners GP L.L.C. increased its position in Metropolitan Bank by 114.8% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 559,479 shares of the company's stock worth $42,722,000 after purchasing an additional 299,061 shares during the last quarter. Wellington Management Group LLP boosted its holdings in Metropolitan Bank by 66.6% in the 4th quarter. Wellington Management Group LLP now owns 592,799 shares of the company's stock valued at $45,266,000 after purchasing an additional 236,946 shares during the last quarter. Bank of America Corp DE grew its stake in shares of Metropolitan Bank by 611.9% in the 1st quarter. Bank of America Corp DE now owns 141,613 shares of the company's stock valued at $11,795,000 after buying an additional 121,721 shares during the period. JPMorgan Chase & Co. increased its holdings in shares of Metropolitan Bank by 53.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 178,363 shares of the company's stock worth $13,345,000 after buying an additional 62,327 shares during the last quarter. Finally, UBS Group AG increased its holdings in shares of Metropolitan Bank by 363.5% during the 4th quarter. UBS Group AG now owns 64,832 shares of the company's stock worth $4,951,000 after buying an additional 50,844 shares during the last quarter. 79.83% of the stock is currently owned by institutional investors and hedge funds.

Metropolitan Bank Trading Down 9.0%

The stock has a market cap of $1.12 billion, a PE ratio of 11.10 and a beta of 1.00. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.99 and a current ratio of 0.99. The company's 50-day moving average price is $94.28 and its 200 day moving average price is $89.22.

About Metropolitan Bank

Metropolitan Bank NYSE: MCB, through its principal subsidiary Metropolitan Commercial Bank, operates as a New York–based regional financial institution providing a range of commercial and consumer banking services. The company offers deposit products including checking, savings and money market accounts, as well as business and personal certificates of deposit. On the lending side, Metropolitan Bank extends commercial real estate financing, equipment loans, working capital lines of credit and consumer installment loans tailored to the needs of small- and medium-sized enterprises and individual customers.

In addition to traditional deposit and lending services, Metropolitan Bank provides specialized treasury and cash-management solutions, foreign exchange services and letters of credit for both domestic businesses and multinational clients.

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