Merchants Bancorp (NASDAQ:MBIN) Short Interest Up 69.8% in August

Key Points

• Short interest in Merchants Bancorp rose by 69.8% in August, reaching 1,430,000 shares, which is approximately 7.0% of the company's total share volume.
• Merchants Bancorp reported $0.60 earnings per share for the latest quarter, missing analysts' estimates of $1.12, although the company's revenue was higher than expected at $179.20 million.
• The company declared a quarterly dividend of $0.10 per share, indicating a dividend yield of 1.2% and a dividend payout ratio of 8.79%.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) was the recipient of a significant growth in short interest during the month of August. As of August 31st, there was short interest totaling 1,430,000 shares, a growth of 69.8% from the August 15th total of 842,300 shares. Approximately 7.0% of the company's shares are sold short. Based on an average trading volume of 201,700 shares, the short-interest ratio is currently 7.1 days. Based on an average trading volume of 201,700 shares, the short-interest ratio is currently 7.1 days. Approximately 7.0% of the company's shares are sold short.

Insider Activity

In other news, CAO Darin L. Thomas acquired 3,353 shares of the firm's stock in a transaction dated Friday, August 22nd. The stock was bought at an average cost of $29.71 per share, for a total transaction of $99,617.63. Following the completion of the transaction, the chief accounting officer directly owned 2,250 shares in the company, valued at $66,847.50. This represents a -303.99% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders own 34.80% of the company's stock.

Hedge Funds Weigh In On Merchants Bancorp

Several hedge funds have recently bought and sold shares of the company. Valeo Financial Advisors LLC grew its stake in Merchants Bancorp by 6.2% during the second quarter. Valeo Financial Advisors LLC now owns 239,482 shares of the company's stock valued at $7,920,000 after acquiring an additional 14,055 shares in the last quarter. Osaic Holdings Inc. grew its stake in Merchants Bancorp by 6.6% during the second quarter. Osaic Holdings Inc. now owns 14,376 shares of the company's stock valued at $475,000 after acquiring an additional 884 shares in the last quarter. Tower Research Capital LLC TRC grew its stake in Merchants Bancorp by 110.0% during the second quarter. Tower Research Capital LLC TRC now owns 2,201 shares of the company's stock valued at $73,000 after acquiring an additional 1,153 shares in the last quarter. Oxford Financial Group LTD. LLC purchased a new position in Merchants Bancorp during the second quarter valued at approximately $368,000. Finally, BNP Paribas Financial Markets grew its stake in Merchants Bancorp by 702.4% during the second quarter. BNP Paribas Financial Markets now owns 17,268 shares of the company's stock valued at $571,000 after acquiring an additional 15,116 shares in the last quarter. Hedge funds and other institutional investors own 24.57% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on MBIN shares. Wall Street Zen cut shares of Merchants Bancorp from a "hold" rating to a "sell" rating in a report on Saturday, August 2nd. Morgan Stanley reduced their price target on shares of Merchants Bancorp from $40.00 to $34.00 and set an "equal weight" rating for the company in a report on Tuesday, July 29th. Raymond James Financial reiterated an "outperform" rating and set a $40.00 price objective (down from $41.00) on shares of Merchants Bancorp in a report on Tuesday, July 29th. Finally, Piper Sandler reiterated an "overweight" rating and set a $41.00 price objective (down from $42.00) on shares of Merchants Bancorp in a report on Wednesday, July 30th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $38.33.

Merchants Bancorp Stock Performance

MBIN stock traded down $0.78 during mid-day trading on Friday, hitting $32.22. The company had a trading volume of 252,363 shares, compared to its average volume of 188,913. The firm has a market cap of $1.48 billion, a PE ratio of 7.08 and a beta of 1.30. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.88 and a current ratio of 1.20. Merchants Bancorp has a 12 month low of $27.25 and a 12 month high of $47.02. The stock's fifty day moving average price is $32.54 and its two-hundred day moving average price is $33.35.

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) last posted its quarterly earnings results on Monday, July 28th. The company reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.12 by ($0.52). Merchants Bancorp had a net margin of 18.06% and a return on equity of 16.06%. The business had revenue of $179.20 million during the quarter, compared to the consensus estimate of $161.10 million. On average, analysts forecast that Merchants Bancorp will post 5.54 earnings per share for the current fiscal year.

Merchants Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Monday, September 15th will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.40 annualized dividend and a yield of 1.2%. Merchants Bancorp's payout ratio is currently 8.79%.

About Merchants Bancorp

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family and healthcare facilities.