Merchants Bancorp (NASDAQ:MBIN) Shares Gap Down on Disappointing Earnings

The stock price of Merchants Bancorp (NASDAQ:MBIN) experienced a significant drop before the market opened on Tuesday, following the release of disappointing earnings figures. The company's shares, which closed at $43.89, opened lower at $41.18. As of the latest trading session, Merchants Bancorp shares were priced at $39.12, with a trading volume of 109,112 shares.

Merchants Bancorp reported earnings of $1.17 per share (EPS) for the last quarter, which fell short of analysts' expectations of $1.42 by $0.25. In terms of revenue, the company generated $355.67 million in the quarter, significantly exceeding the analyst forecast of $156.13 million. The company also reported a net margin of 23.14% and a return on equity of 25.54%. Comparing with the same quarter last year, the EPS was $1.68, indicating a decline in earnings.

Merchants Bancorp Dividend Information

Additionally, Merchants Bancorp announced its quarterly dividend, which was distributed on October 1st. Stockholders who were registered as of September 13th received a dividend of $0.09 per share. This translates to an annual dividend of $0.36, providing a dividend yield of 0.92%. Currently, the company's dividend payout ratio stands at 5.65%.

Analyst Projections for Growth

Research analysts have shared views on Merchants Bancorp’s performance, with Raymond James reducing its price target for the stock from $58.00 to $55.00 and maintaining an "outperform" rating. On the other hand, Morgan Stanley initiated coverage on the stock in September with an "equal weight" rating and a price target of $54.00.

Insider Transactions

In recent insider activities, CEO Michael R. Dury purchased 6,000 shares of Merchants Bancorp on July 31st, acquiring them at an average price of $44.82 per share, amounting to a total of $268,920. Following this purchase, the CEO holds 88,593 shares valued at approximately $3,970,738.26. The ownership of the stock remained unchanged after this transaction. This purchase was officially reported to the SEC. Additionally, Vice Chairman Randall D. Rogers sold 75,000 shares on August 22nd, at an average price of $44.00, totaling $3,300,000. Post-sale, Rogers still owns 748,000 shares valued at around $32,912,000. Insiders collectively own 39.70% of the company’s shares.

Institutional Investment Activity in Merchants Bancorp

Recently, various hedge funds and institutional investors have adjusted their stakes in Merchants Bancorp. For instance, Raymond James & Associates increased its stake by 0.8% in the second quarter, accumulating 55,365 shares worth roughly $2,244,000 after buying an additional 414 shares. Other institutions such as Denali Advisors LLC and Sei Investments Co. also raised their holdings slightly during the first and second quarters respectively. Currently, around 24.57% of Merchants Bancorp stock is owned by institutional investors.

Market Performance of Merchants Bancorp

As of now, Merchants Bancorp's stock has seen a decline of 10.4%. It has a 50-day simple moving average of $44.53 and a 200-day simple moving average of $43.02. The company currently holds a debt-to-equity ratio of 0.81, a current ratio of 1.01, and a quick ratio of 0.78. The market capitalization of Merchants Bancorp is approximately $1.70 billion, and it has a price-to-earnings (P/E) ratio of 6.14, while its beta stands at 1.09.

About Merchants Bancorp

Merchants Bancorp is a diversified banking holding company based in the United States, operating through three primary segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. Its Multi-family Mortgage Banking segment is involved in originating and servicing government-sponsored mortgages, along with providing financing options to refinance, purchase, or reposition multi-family housing projects.

Merchants, Earnings, Dividend