Merchants Bancorp (NASDAQ:MBIN) Shares Gap Down Following Weak Earnings

Merchants Bancorp (NASDAQ:MBIN) shares gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $52.10, but opened at $50.00. Merchants Bancorp shares last traded at $46.43, with a volume of 24,859 shares trading hands.

The company reported $1.49 earnings per share for the quarter, missing the consensus estimate of $1.57 by ($0.08). Merchants Bancorp had a return on equity of 26.65% and a net margin of 23.55%. The company had revenue of $359.62 million for the quarter, compared to analysts’ expectations of $160.70 million. During the same quarter in the previous year, the company earned $1.31 earnings per share.

Merchants Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, July 1st. Stockholders of record on Friday, June 14th were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.78%. The ex-dividend date was Friday, June 14th. Merchants Bancorp’s dividend payout ratio is presently 5.65%.

Wall Street Analyst Weigh In

MBIN has been the topic of a number of recent analyst reports. Piper Sandler reiterated an “overweight” rating and issued a $56.00 price objective (down previously from $58.50) on shares of Merchants Bancorp in a report on Friday, May 17th. Raymond James lowered Merchants Bancorp from a “strong-buy” rating to an “outperform” rating and upped their price target for the company from $55.00 to $58.00 in a research report on Tuesday.

Hedge Funds Weigh In On Merchants Bancorp

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sapient Capital LLC acquired a new stake in Merchants Bancorp during the 4th quarter worth about $2,928,000. Knights of Columbus Asset Advisors LLC raised its holdings in shares of Merchants Bancorp by 94.6% during the fourth quarter. Knights of Columbus Asset Advisors LLC now owns 109,732 shares of the company’s stock worth $4,672,000 after acquiring an additional 53,333 shares in the last quarter. Elizabeth Park Capital Advisors Ltd. acquired a new stake in shares of Merchants Bancorp during the 4th quarter valued at about $2,289,000. Quadrature Capital Ltd acquired a new stake in Merchants Bancorp in the fourth quarter valued at approximately $2,658,000. Finally, Federated Hermes Inc. boosted its holdings in Merchants Bancorp by 42,253.6% in the fourth quarter. Federated Hermes Inc. now owns 217,274 shares of the company’s stock worth $9,252,000 after purchasing an additional 216,761 shares in the last quarter. 24.57% of the stock is owned by institutional investors.

Merchants Bancorp Stock Performance

The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.81 and a current ratio of 1.06. The firm has a 50 day moving average price of $42.47 and a 200-day moving average price of $42.07. The company has a market cap of $2.01 billion, a P/E ratio of 8.18 and a beta of 1.12.

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.