MetroCity Bankshares (NASDAQ:MCBS) Stock Price Down 6.7% Following Weak Earnings

MetroCity Bankshares, Inc. (NASDAQ:MCBS) dropped 6.7% on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $33.11 and last traded at $34.11. Approximately 15,067 shares changed hands during trading, a decline of 83% from the average daily volume of 88,714 shares. The stock had previously closed at $36.57.

The company reported $0.76 earnings per share for the quarter, missing the consensus estimate of $0.81 by ($0.05). The firm had revenue of $49.80 million during the quarter, compared to analysts’ expectations of $52.40 million. MetroCity Bankshares had a return on equity of 15.55% and a net margin of 28.40%.

MetroCity Bankshares Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Wednesday, July 29th will be paid a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Wednesday, July 29th. MetroCity Bankshares’s dividend payout ratio (DPR) is presently 41.88%.

Analysts Set New Price Targets

A number of brokerages have weighed in on MCBS. Weiss Ratings restated a “buy (b)” rating on shares of MetroCity Bankshares in a report on Wednesday, July 8th. Wall Street Zen lowered shares of MetroCity Bankshares from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Finally, Keefe, Bruyette & Woods boosted their price target on MetroCity Bankshares from $32.00 to $33.00 and gave the stock a “market perform” rating in a research report on Thursday, April 9th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $33.00.

Institutional Trading of MetroCity Bankshares

Several institutional investors have recently added to or reduced their stakes in MCBS. CWM LLC increased its holdings in shares of MetroCity Bankshares by 49.5% in the 4th quarter. CWM LLC now owns 1,428 shares of the company’s stock worth $38,000 after purchasing an additional 473 shares in the last quarter. Russell Investments Group Ltd. purchased a new stake in shares of MetroCity Bankshares during the third quarter valued at $45,000. State of Alaska Department of Revenue increased its holdings in MetroCity Bankshares by 77.9% in the 4th quarter. State of Alaska Department of Revenue now owns 1,822 shares of the company’s stock worth $48,000 after buying an additional 798 shares in the last quarter. BNP Paribas Financial Markets raised its position in MetroCity Bankshares by 21.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 3,057 shares of the company’s stock worth $87,000 after buying an additional 540 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. purchased a new position in MetroCity Bankshares in the 4th quarter worth about $99,000. 25.33% of the stock is currently owned by hedge funds and other institutional investors.

MetroCity Bankshares Stock Down 5.1%

The company has a current ratio of 1.21, a quick ratio of 1.20 and a debt-to-equity ratio of 0.77. The firm has a market cap of $994.50 million, a P/E ratio of 12.05 and a beta of 0.70. The company’s 50 day simple moving average is $34.58 and its 200-day simple moving average is $31.18.

About MetroCity Bankshares

MetroCity Bankshares, Inc is a bank holding company headquartered in Houston, Texas. Through its wholly owned subsidiary, MetroCity Bank, the company provides a range of banking and financial services to individuals and businesses. MetroCity Bankshares focuses on community banking, leveraging local expertise to support the financial needs of the greater Houston metropolitan area.

MetroCity Bank offers traditional deposit products, including checking and savings accounts, money market accounts and certificates of deposit.