Farmers & Merchants Bancorp (NASDAQ:FMAO) Reaches New 1-Year High Following Strong Earnings

Key Points

• Farmers & Merchants Bancorp shares reached a new 52-week high after the company reported quarterly EPS of $0.84, exceeding the $0.80 analyst consensus, while revenue of $34.81 million also topped estimates.
• The company paid a $0.01 special dividend, with a current payout ratio of 32.99%. Despite the earnings beat, analyst sentiment remained cautious, with an average rating of “Hold” and a $32.25 price target.
• Insiders sold 30,402 shares worth approximately $1.04 million over the past 90 days, while institutional investors own 23.96% of the company.

Farmers & Merchants Bancorp Inc. (NASDAQ:FMAO - Get Free Report)'s share price reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $36.31 and last traded at $35.5520, with a volume of 139,813 shares trading hands. The stock had previously closed at $35.89.

The financial services provider reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.04. Farmers & Merchants Bancorp had a return on equity of 10.72% and a net margin of 20.27%. The company had revenue of $34.81 million for the quarter, compared to analyst estimates of $34.65 million.

Farmers & Merchants Bancorp Dividend Announcement

The company also recently announced a special dividend, which was paid on Tuesday, October 20th. Investors of record on Friday, October 9th were paid a $0.01 dividend. The ex-dividend date was Friday, October 9th. Farmers & Merchants Bancorp's payout ratio is currently 32.99%.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a "buy (b)" rating on shares of Farmers & Merchants Bancorp in a research note on Monday, September 14th. Piper Sandler reissued a "neutral" rating and issued a $36.00 price objective (up from $32.00) on shares of Farmers & Merchants Bancorp in a report on Wednesday, July 29th. Zacks Research downgraded Farmers & Merchants Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 29th. Finally, Wall Street Zen lowered shares of Farmers & Merchants Bancorp from a "buy" rating to a "hold" rating in a report on Saturday, September 5th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $32.25.

Insiders Place Their Bets

In related news, Director Andrew J. Briggs sold 2,402 shares of Farmers & Merchants Bancorp stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $35.05, for a total value of $84,190.10. Following the completion of the transaction, the director owned 49,148 shares in the company, valued at $1,722,637.40. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP David Gerken sold 1,000 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $33.72, for a total value of $33,720.00. Following the completion of the transaction, the executive vice president directly owned 6,509 shares of the company's stock, valued at $219,483.48. This trade represents a 13.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 30,402 shares of company stock valued at $1,044,760 in the last ninety days. Insiders own 7.30% of the company's stock.

Institutional Investors Weigh In On Farmers & Merchants Bancorp

Several institutional investors have recently modified their holdings of the company. Versant Capital Management Inc lifted its position in shares of Farmers & Merchants Bancorp by 72.2% in the second quarter. Versant Capital Management Inc now owns 813 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 341 shares in the last quarter. GAMMA Investing LLC grew its holdings in Farmers & Merchants Bancorp by 25.9% during the 3rd quarter. GAMMA Investing LLC now owns 2,436 shares of the financial services provider's stock valued at $84,000 after purchasing an additional 501 shares in the last quarter. State of Alaska Department of Revenue boosted its stake in shares of Farmers & Merchants Bancorp by 126.0% during the 3rd quarter. State of Alaska Department of Revenue now owns 956 shares of the financial services provider's stock valued at $32,000 after buying an additional 533 shares during the last quarter. Hsbc Holdings PLC grew its stake in Farmers & Merchants Bancorp by 11.5% in the first quarter. Hsbc Holdings PLC now owns 10,582 shares of the financial services provider's stock worth $271,000 after purchasing an additional 1,089 shares in the last quarter. Finally, Legal & General Group Plc bought a new position in shares of Farmers & Merchants Bancorp in the 2nd quarter worth about $40,000. Hedge funds and other institutional investors own 23.96% of the company's stock.

Farmers & Merchants Bancorp Trading Up 0.7%

The stock has a market cap of $497.51 million, a P/E ratio of 12.53 and a beta of 0.81. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.44. The firm's 50-day simple moving average is $34.91 and its 200 day simple moving average is $31.25.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp, Inc is a bank holding company headquartered in Archbold, Ohio. Founded in 1897, the company operates through its principal subsidiary, The Farmers & Merchants State Bank, a community bank serving individuals, families, farmers and businesses.

The bank offers a range of traditional financial services, including checking and savings accounts, certificates of deposit, consumer and residential mortgage loans, commercial lending, agricultural loans and other business banking products.

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