Merchants Bancorp (NASDAQ:MBIN) Price Target Cut to $34.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley has reduced its price target for Merchants Bancorp (NASDAQ:MBIN) from $40.00 to $34.00, indicating a potential upside of 6.92% based on current stock levels.
• Other analysts, such as Raymond James Financial, have also adjusted their ratings, with some reducing their price targets while maintaining an "outperform" rating.
• Merchants Bancorp's stock is currently trading at $31.80, reflecting a decline of 9.3% in value, alongside a reported earnings miss where EPS was $0.60 against a consensus estimate of $1.12.

Merchants Bancorp (NASDAQ:MBIN - Free Report) had its target price decreased by Morgan Stanley from $40.00 to $34.00 in a research report released on Tuesday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the stock.

Other equities analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of Merchants Bancorp from a "hold" rating to a "sell" rating in a research note on Friday, June 27th. Raymond James Financial reiterated an "outperform" rating and set a $40.00 target price (down from $41.00) on shares of Merchants Bancorp in a research report on Tuesday.

Merchants Bancorp Stock Down 0.4%

Shares of MBIN stock traded down $0.12 on Tuesday, hitting $29.18. The stock had a trading volume of 409,101 shares, compared to its average volume of 181,839. The business has a 50 day moving average of $33.16 and a 200 day moving average of $35.55. The stock has a market cap of $1.34 billion, a price-to-earnings ratio of 6.41 and a beta of 1.30. 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 has a 12-month low of $27.25 and a 12-month high of $47.94.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) last announced its earnings results on Monday, July 28th. The company reported $0.60 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 firm had revenue of $179.20 million during the quarter, compared to analysts' expectations of $161.10 million. As a group, analysts expect that Merchants Bancorp will post 5.54 EPS for the current year.

Merchants Bancorp Dividend Announcement

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

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Envestnet Asset Management Inc. purchased a new position in shares of Merchants Bancorp in the second quarter worth $229,000. AlphaQuest LLC increased its stake in shares of Merchants Bancorp by 278.6% in the second quarter. AlphaQuest LLC now owns 11,234 shares of the company's stock worth $372,000 after buying an additional 8,267 shares during the period. Denali Advisors LLC increased its stake in shares of Merchants Bancorp by 17.8% in the second quarter. Denali Advisors LLC now owns 200,510 shares of the company's stock worth $6,631,000 after buying an additional 30,356 shares during the period. CWM LLC increased its position in Merchants Bancorp by 121.6% during 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 during the period. Finally, Inspire Investing LLC purchased a new position in Merchants Bancorp during the 2nd quarter valued at $390,000. 24.57% of the stock is owned by hedge funds and other institutional investors.

Merchants Bancorp Company Profile

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.