Merchants Bancorp (NASDAQ:MBIN) Shares Gap Up on Earnings Beat

Key Points

• Merchants Bancorp shares jumped after the company reported quarterly EPS of $2.06, beating the $1.39 analyst consensus, while revenue of $224.94 million also exceeded estimates.
• The company declared a quarterly dividend of $0.11 per share, equivalent to $0.44 annually and a 0.8% yield, with a payout ratio of 8.84%.
• Analyst sentiment remains mixed: two analysts rate the stock a Buy and three rate it a Hold, producing a consensus Hold rating and a $56.50 target price. Institutional investors own 24.57% of the company.

Shares of Merchants Bancorp (NASDAQ:MBIN - Get Free Report) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $49.13, but opened at $55.99. Merchants Bancorp shares last traded at $54.54, with a volume of 15,392 shares.

The company reported $2.06 EPS for the quarter, beating analysts' consensus estimates of $1.39 by $0.67. Merchants Bancorp had a return on equity of 15.29% and a net margin of 19.80%. The firm had revenue of $224.94 million for the quarter, compared to analyst estimates of $182.95 million.

Merchants Bancorp Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Tuesday, September 15th were given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Tuesday, September 15th. Merchants Bancorp's dividend payout ratio (DPR) is presently 8.84%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on MBIN shares. Zacks Research downgraded shares of Merchants Bancorp from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Raymond James Financial cut shares of Merchants Bancorp from an "outperform" rating to a "market perform" rating in a research report on Wednesday, July 1st. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Merchants Bancorp in a report on Friday, July 31st. Morgan Stanley set a $65.00 price target on Merchants Bancorp and gave the company an "equal weight" rating in a research report on Tuesday, September 8th. Finally, Piper Sandler reiterated an "overweight" rating and set a $68.00 price target (up from $63.00) on shares of Merchants Bancorp in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $56.50.

Institutional Investors Weigh In On Merchants Bancorp

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Merchants Bancorp in the second quarter valued at approximately $205,260,000. Dimensional Fund Advisors LP lifted its position in Merchants Bancorp by 6.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,758,985 shares of the company's stock valued at $75,476,000 after purchasing an additional 102,087 shares during the last quarter. Basswood Capital Management L.L.C. bought a new position in Merchants Bancorp in the second quarter valued at $13,687,000. Bank of New York Mellon Corp increased its position in shares of Merchants Bancorp by 43.7% during the 1st quarter. Bank of New York Mellon Corp now owns 236,146 shares of the company's stock valued at $10,133,000 after purchasing an additional 71,775 shares during the last quarter. Finally, Royal Bank of Canada raised its stake in shares of Merchants Bancorp by 3.3% during the first quarter. Royal Bank of Canada now owns 212,852 shares of the company's stock worth $9,134,000 after acquiring an additional 6,899 shares in the last quarter. Hedge funds and other institutional investors own 24.57% of the company's stock.

Merchants Bancorp Price Performance

The firm has a market capitalization of $2.47 billion, a P/E ratio of 10.95 and a beta of 1.21. The firm's 50 day simple moving average is $51.16 and its two-hundred day simple moving average is $47.33. The company has a debt-to-equity ratio of 2.32, a current ratio of 1.21 and a quick ratio of 0.89.

Merchants Bancorp Company Profile

Merchants Bancorp is a diversified financial holding company headquartered in Carmel, Indiana. Through its principal subsidiary, Merchants Bank of Indiana, the company provides banking, mortgage banking and healthcare finance services to businesses, institutions and other clients.

The company's mortgage banking operations offer financing and related services for multifamily and healthcare properties, including loans for apartment communities, senior housing and other specialized real estate.

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