Merchants Bancorp (NASDAQ:MBIN) Sees Strong Trading Volume – Here’s What Happened

Merchants Bancorp (NASDAQ:MBIN) shares saw unusually-strong trading volume on Tuesday . Approximately 702,228 shares changed hands during trading, an increase of 200% from the previous session’s volume of 233,808 shares.The stock last traded at $45.7750 and had previously closed at $45.06.

Wall Street Analyst Weigh In

MBIN has been the subject of a number of recent research reports. Raymond James Financial reaffirmed an “outperform” rating and set a $38.00 price target (down previously from $40.00) on shares of Merchants Bancorp in a research report on Wednesday, October 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Merchants Bancorp in a research note on Monday, December 29th. Wall Street Zen upgraded shares of Merchants Bancorp from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. UBS Group set a $42.00 target price on shares of Merchants Bancorp in a report on Thursday, October 30th. Finally, Piper Sandler reissued an “overweight” rating and set a $42.00 price target (up previously from $41.00) on shares of Merchants Bancorp in a research report on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Merchants Bancorp has an average rating of “Moderate Buy” and an average price target of $41.00.

Merchants Bancorp Stock Performance

The company has a debt-to-equity ratio of 1.73, a current ratio of 1.10 and a quick ratio of 0.80. The stock’s 50-day moving average price is $36.12 and its 200-day moving average price is $33.43. The company has a market cap of $2.13 billion, a P/E ratio of 12.25 and a beta of 1.27.

Merchants Bancorp (NASDAQ:MBIN) last posted its quarterly earnings data on Wednesday, January 28th. The company reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.34. Merchants Bancorp had a net margin of 16.02% and a return on equity of 13.35%. The firm had revenue of $193.49 million during the quarter, compared to the consensus estimate of $170.80 million. Equities analysts anticipate that Merchants Bancorp will post 5.54 EPS for the current year.

Merchants Bancorp Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 15th were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Monday, December 15th. Merchants Bancorp’s dividend payout ratio is 10.58%.

Merchants Bancorp declared that its Board of Directors has approved a share buyback program on Wednesday, January 28th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to buy up to 6.2% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Merchants Bancorp

A number of large investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP lifted its holdings in shares of Merchants Bancorp by 4.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,601,928 shares of the company’s stock worth $50,942,000 after acquiring an additional 61,622 shares during the period. Vanguard Group Inc. raised its position in Merchants Bancorp by 2.6% during the fourth quarter. Vanguard Group Inc. now owns 1,414,584 shares of the company’s stock valued at $48,181,000 after purchasing an additional 36,184 shares in the last quarter. Royce & Associates LP lifted its stake in Merchants Bancorp by 10.2% during the third quarter. Royce & Associates LP now owns 862,119 shares of the company’s stock worth $27,415,000 after purchasing an additional 79,707 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Merchants Bancorp by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 715,394 shares of the company’s stock valued at $24,371,000 after purchasing an additional 18,925 shares in the last quarter. Finally, American Century Companies Inc. increased its stake in shares of Merchants Bancorp by 10.9% in the 3rd quarter. American Century Companies Inc. now owns 630,077 shares of the company’s stock valued at $20,036,000 after purchasing an additional 62,097 shares during the last quarter. 24.57% of the stock is currently owned by institutional investors and hedge funds.

About Merchants Bancorp

Merchants Bancorp (NASDAQ: MBIN) is the bank holding company for Merchants Bank, a regional financial institution headquartered in Buffalo, New York. Through its network of branches and digital platforms, the company offers a range of banking services across western and central New York. Merchants Bancorp operates as a full?service commercial bank, serving small and medium-sized businesses, professionals, families and individuals in its core markets.

The company’s primary activities include deposit taking, commercial and consumer lending, mortgage origination, and treasury management services.