Short Interest in Merchants Bancorp (NASDAQ:MBIN) Rises By 69.8%

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) saw a large growth in short interest in 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 daily trading volume, of 201,700 shares, the short-interest ratio is currently 7.1 days. Based on an average daily 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.

Merchants Bancorp Price Performance

Merchants Bancorp stock traded down $0.42 during mid-day trading on Monday, reaching $32.22. The company had a trading volume of 113,916 shares, compared to its average volume of 178,793. Merchants Bancorp has a fifty-two week low of $27.25 and a fifty-two week high of $47.42. The company has a current ratio of 1.20, a quick ratio of 0.88 and a debt-to-equity ratio of 2.45. The company has a market cap of $1.48 billion, a P/E ratio of 7.08 and a beta of 1.30. The business has a fifty day simple moving average of $32.81 and a 200 day simple moving average of $33.48.

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

Merchants Bancorp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders 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 dividend yield of 1.2%. Merchants Bancorp's dividend payout ratio (DPR) is presently 8.79%.

Analyst Upgrades and Downgrades

MBIN has been the subject of several recent research reports. Piper Sandler reissued an "overweight" rating and set a $41.00 price target (down from $42.00) on shares of Merchants Bancorp in a research report on Wednesday, July 30th. Raymond James Financial reaffirmed an "outperform" rating and set a $40.00 target price (down from $41.00) on shares of Merchants Bancorp in a report on Tuesday, July 29th. Wall Street Zen cut shares of Merchants Bancorp from a "hold" rating to a "sell" rating in a report on Saturday, August 2nd. Finally, Morgan Stanley decreased their price target on Merchants Bancorp from $40.00 to $34.00 and set an "equal weight" rating on the stock in a research report on Tuesday, July 29th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $38.33.

Insiders Place Their Bets

In other news, CAO Darin L. Thomas acquired 3,353 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The stock was purchased at an average price of $29.71 per share, for a total transaction of $99,617.63. Following the completion of the acquisition, the chief accounting officer owned 2,250 shares in the company, valued at $66,847.50. This trade represents a -303.99% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 34.80% of the company's stock.

Institutional Trading of Merchants Bancorp

Several institutional investors have recently modified their holdings of the business. Sowell Financial Services LLC bought a new stake in shares of Merchants Bancorp in the 1st quarter valued at $318,000. Ameriprise Financial Inc. raised its stake in Merchants Bancorp by 76.0% during the fourth quarter. Ameriprise Financial Inc. now owns 82,200 shares of the company's stock worth $2,998,000 after buying an additional 35,492 shares during the last quarter. Millennium Management LLC raised its stake in Merchants Bancorp by 214.1% during the fourth quarter. Millennium Management LLC now owns 126,087 shares of the company's stock worth $4,598,000 after buying an additional 85,948 shares during the last quarter. Jane Street Group LLC raised its holdings in shares of Merchants Bancorp by 94.2% during the fourth quarter. Jane Street Group LLC now owns 20,513 shares of the company's stock valued at $748,000 after purchasing an additional 9,952 shares during the period. Finally, Point72 Asset Management L.P. bought a new position in Merchants Bancorp in the fourth quarter worth approximately $878,000. Institutional investors own 24.57% of the company's stock.

Merchants Bancorp Company Profile

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.

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