Metropolitan Bank (NYSE:MCB) Shares Gap Up Following Strong Earnings

Key Points

• Metropolitan Bank exceeded quarterly expectations, reporting earnings per share of $2.58 versus the $2.38 consensus estimate and revenue of $100.56 million compared with expectations of $97.05 million. Shares opened at $95 after previously closing at $88.87.
• The company declared a quarterly dividend of $0.35 per share, equivalent to $1.40 annually and a 1.5% yield, with a payout ratio of 17.72%.
• Analyst sentiment remains generally positive, with an average rating of “Buy” and a consensus price target of $105, although UBS and Keefe, Bruyette & Woods recently reduced their targets. Institutional investors own approximately 79.83% of the company.

Metropolitan Bank Holding Corp. (NYSE:MCB - Get Free Report)'s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $88.87, but opened at $95.00. Metropolitan Bank shares last traded at $91.2830, with a volume of 66,575 shares changing hands.

The company reported $2.58 earnings per share for the quarter, beating the consensus estimate of $2.38 by $0.20. Metropolitan Bank had a net margin of 14.31% and a return on equity of 10.22%. The business had revenue of $100.56 million for the quarter, compared to analyst estimates of $97.05 million.

Metropolitan Bank Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 30th will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 30th. Metropolitan Bank's payout ratio is presently 17.72%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on MCB. UBS Group dropped their target price on Metropolitan Bank from $110.00 to $100.00 and set a "neutral" rating for the company in a report on Tuesday, July 28th. Wall Street Zen downgraded Metropolitan Bank from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Metropolitan Bank in a research note on Friday, August 7th. Finally, Keefe, Bruyette & Woods lowered their price target on Metropolitan Bank from $120.00 to $110.00 and set an "outperform" rating on the stock in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Buy" and a consensus price target of $105.00.

Insider Buying and Selling

In other news, CFO Daniel F. Dougherty purchased 1,000 shares of Metropolitan Bank stock in a transaction on Thursday, July 23rd. The shares were purchased at an average cost of $89.98 per share, for a total transaction of $89,980.00. Following the completion of the transaction, the chief financial officer directly owned 33,197 shares in the company, valued at approximately $2,987,066.06. This represents a 3.11% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Robert C. Patent sold 10,000 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $92.29, for a total transaction of $922,900.00. Following the completion of the transaction, the director owned 76,185 shares in the company, valued at approximately $7,031,113.65. This trade represents a 11.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 5.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Metropolitan Bank

Several hedge funds have recently modified their holdings of MCB. Emerald Advisers LLC bought a new stake in shares of Metropolitan Bank during the first quarter worth $25,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Metropolitan Bank in the second quarter valued at $33,000. Royal Bank of Canada raised its holdings in shares of Metropolitan Bank by 272.0% in the first quarter. Royal Bank of Canada now owns 1,287 shares of the company's stock valued at $108,000 after buying an additional 941 shares during the last quarter. Avalon Trust Co bought a new position in shares of Metropolitan Bank in the second quarter valued at about $148,000. Finally, Diversified Trust Co bought a new position in shares of Metropolitan Bank in the first quarter valued at about $223,000. Institutional investors and hedge funds own 79.83% of the company's stock.

Metropolitan Bank Trading Up 1.9%

The company's 50-day moving average is $89.89 and its 200-day moving average is $91.44. The firm has a market cap of $1.12 billion, a price-to-earnings ratio of 11.49 and a beta of 1.03. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.97 and a current ratio of 0.97.

Metropolitan Bank Company Profile

Metropolitan Bank Holding Corp. is the parent company of Metropolitan Commercial Bank, a full-service commercial bank headquartered in New York. Founded in 1999, the bank provides financial services to businesses, entrepreneurs, institutions and consumers through its branch network and digital banking channels.

Metropolitan Commercial Bank offers commercial and consumer deposit accounts, business and real estate lending, personal loans, cash-management and treasury services, online and mobile banking, and other payment-related solutions.

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