Independent Bank (NASDAQ:IBCP) Share Price Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• Independent Bank shares fell below their 200-day moving average, trading as low as $34.53 versus the $35.54 average, and last changing hands at $34.76.
• Analyst sentiment remains positive overall, with an average “Moderate Buy” rating and a $39.50 price target; recent targets range from $38 to $42.
• The company reported quarterly EPS of $0.90, beating estimates by $0.06, and pays a $0.28 quarterly dividend, equivalent to a 3.2% annualized yield.

Independent Bank Corporation (NASDAQ:IBCP - Get Free Report) passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $35.54 and traded as low as $34.53. Independent Bank shares last traded at $34.76, with a volume of 353,273 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Keefe, Bruyette & Woods upped their price objective on Independent Bank from $37.00 to $38.00 and gave the company a "market perform" rating in a research note on Friday, July 24th. Weiss Ratings reiterated a "buy (b)" rating on shares of Independent Bank in a research report on Friday, September 4th. Hovde Group upgraded Independent Bank from a "market perform" rating to an "outperform" rating and increased their price objective for the stock from $36.00 to $41.00 in a research note on Friday, July 10th. Finally, Piper Sandler raised Independent Bank from a "neutral" rating to an "overweight" rating and set a $42.00 price objective for the company in a report on Friday, October 2nd. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $39.50.

Independent Bank Price Performance

The company has a debt-to-equity ratio of 0.32, a current ratio of 0.95 and a quick ratio of 0.94. The firm has a market capitalization of $771.67 million, a P/E ratio of 10.10 and a beta of 0.73. The company's 50 day moving average price is $36.64 and its 200 day moving average price is $35.54.

Independent Bank (NASDAQ:IBCP - Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.84 by $0.06. The firm had revenue of $61.64 million during the quarter, compared to analysts' expectations of $60.08 million. Independent Bank had a net margin of 22.32% and a return on equity of 14.12%. During the same quarter in the previous year, the company posted $0.81 EPS. As a group, sell-side analysts anticipate that Independent Bank Corporation will post 3.51 EPS for the current fiscal year.

Independent Bank Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Tuesday, August 4th were issued a $0.28 dividend. The ex-dividend date was Tuesday, August 4th. This represents a $1.12 annualized dividend and a yield of 3.2%. Independent Bank's dividend payout ratio (DPR) is currently 32.56%.

Insider Buying and Selling

In related news, CEO William Kessel sold 2,000 shares of Independent Bank stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $37.28, for a total value of $74,560.00. Following the completion of the sale, the chief executive officer directly owned 157,836 shares in the company, valued at $5,884,126.08. This trade represents a 1.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.91% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Y Intercept Hong Kong Ltd lifted its stake in shares of Independent Bank by 204.6% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 64,512 shares of the financial services provider's stock valued at $2,148,000 after purchasing an additional 43,332 shares during the period. Bank of America Corp DE grew its stake in shares of Independent Bank by 50.6% during the first quarter. Bank of America Corp DE now owns 91,106 shares of the financial services provider's stock worth $3,034,000 after purchasing an additional 30,622 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Independent Bank by 20.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 181,515 shares of the financial services provider's stock worth $6,044,000 after purchasing an additional 30,582 shares during the period. Sei Investments Co. increased its holdings in Independent Bank by 35.5% in the first quarter. Sei Investments Co. now owns 110,479 shares of the financial services provider's stock valued at $3,679,000 after purchasing an additional 28,961 shares during the last quarter. Finally, Hsbc Holdings PLC increased its holdings in Independent Bank by 68.7% in the fourth quarter. Hsbc Holdings PLC now owns 41,334 shares of the financial services provider's stock valued at $1,340,000 after purchasing an additional 16,829 shares during the last quarter. 79.43% of the stock is currently owned by institutional investors and hedge funds.

Independent Bank Company Profile

Independent Bank Corporation is a bank holding company headquartered in Ionia, Michigan. Through its principal subsidiary, Independent Bank, the company provides community banking services to individuals, families, businesses and municipalities throughout Michigan.

Independent Bank offers deposit products such as checking and savings accounts, money market accounts and certificates of deposit. Its lending activities include residential mortgages, home equity financing, consumer loans, commercial real estate loans and financing for small and middle-market businesses.

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