MainStreet Bank (NASDAQ:MNSB) Stock Price Breaks Below Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• MainStreet Bank shares fell below their 200-day moving average, trading as low as $20.77 and last changing hands at $21.22 after disappointing quarterly results.
• The bank reported EPS of $0.43, below the $0.58 analyst consensus, while revenue of $19.45 million also missed expectations of $21.80 million.
• Despite the earnings miss, analysts maintain a “Moderate Buy” consensus, and institutional investors own 52.29% of the company after several funds increased their positions.

MainStreet Bank (NASDAQ:MNSB - Get Free Report) shares crossed below its two hundred day moving average during trading on Monday after the company announced weaker than expected quarterly earnings. The stock has a two hundred day moving average of $23.37 and traded as low as $20.77. MainStreet Bank shares last traded at $21.22, with a volume of 116,539 shares changing hands.

The company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.58 by ($0.15). MainStreet Bank had a net margin of 13.24% and a return on equity of 9.16%. The company had revenue of $19.45 million during the quarter, compared to analysts' expectations of $21.80 million.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a "buy (b-)" rating on shares of MainStreet Bank in a research note on Friday, September 18th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy".

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Toth Financial Advisory Corp boosted its position in shares of MainStreet Bank by 1,204.4% in the 3rd quarter. Toth Financial Advisory Corp now owns 7,109 shares of the company's stock worth $176,000 after buying an additional 6,564 shares in the last quarter. Empowered Funds LLC increased its holdings in MainStreet Bank by 9.7% during the 1st quarter. Empowered Funds LLC now owns 34,396 shares of the company's stock valued at $764,000 after acquiring an additional 3,034 shares in the last quarter. Cassaday & Co Wealth Management LLC acquired a new position in MainStreet Bank during the first quarter worth about $61,000. Finally, Dimensional Fund Advisors LP raised its position in MainStreet Bank by 20.4% during the first quarter. Dimensional Fund Advisors LP now owns 166,633 shares of the company's stock worth $3,699,000 after acquiring an additional 28,282 shares during the last quarter. Hedge funds and other institutional investors own 52.29% of the company's stock.

MainStreet Bank Stock Down 13.1%

The company has a market cap of $151.09 million, a PE ratio of 10.40 and a beta of 0.57. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.37. The firm's fifty day simple moving average is $24.78 and its 200-day simple moving average is $23.37.

MainStreet Bank Company Profile

MainStreet Bank is a community bank headquartered in Fairfax, Virginia, and the banking subsidiary of MainStreet Bancshares, Inc, which trades on the Nasdaq under the symbol MNSB. The bank serves businesses, professionals and individuals in Northern Virginia and the broader Washington, DC, metropolitan area.

The bank provides commercial and consumer banking services, including business and personal checking and savings accounts, certificates of deposit, commercial real estate loans, business loans, residential lending and consumer credit.

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