Merchants Bancorp (NASDAQ:MBIN) Sets New 1-Year High – Should You Buy?

Merchants Bancorp (NASDAQ:MBIN)’s share price hit a new 52-week high during trading on Monday . The stock traded as high as $45.60 and last traded at $44.77, with a volume of 74534 shares changing hands. The stock had previously closed at $42.48.

Analyst Ratings Changes

A number of research firms recently weighed in on MBIN. Morgan Stanley boosted their target price on Merchants Bancorp from $40.00 to $42.00 and gave the stock an “equal weight” rating in a research report on Friday, January 30th. Raymond James Financial restated an “outperform” rating and issued a $38.00 price objective (down from $40.00) on shares of Merchants Bancorp in a report on Wednesday, October 29th. Zacks Research raised shares of Merchants Bancorp from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. UBS Group set a $42.00 target price on shares of Merchants Bancorp in a research report on Thursday, October 30th. Finally, Wall Street Zen raised shares of Merchants Bancorp from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Merchants Bancorp currently has an average rating of “Moderate Buy” and an average price target of $41.00.

Merchants Bancorp Price Performance

The company has a quick ratio of 0.80, a current ratio of 1.10 and a debt-to-equity ratio of 1.73. The firm’s fifty day moving average price is $35.88 and its 200 day moving average price is $33.35. The stock has a market cap of $2.08 billion, a PE ratio of 12.00 and a beta of 1.27.

Merchants Bancorp (NASDAQ:MBIN) last announced its quarterly earnings results 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. The company had revenue of $193.49 million for the quarter, compared to the consensus estimate of $170.80 million. Merchants Bancorp had a net margin of 16.02% and a return on equity of 13.35%. As a group, equities analysts expect that Merchants Bancorp will post 5.54 EPS for the current fiscal year.

Merchants Bancorp Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 15th were paid a $0.10 dividend. 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 (DPR) is presently 10.58%.

Merchants Bancorp announced that its board has authorized a stock buyback plan on Wednesday, January 28th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 6.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Merchants Bancorp

Several hedge funds and other institutional investors have recently modified their holdings of the business. Ballast Asset Management LP increased its position in shares of Merchants Bancorp by 80.3% during the third quarter. Ballast Asset Management LP now owns 137,887 shares of the company’s stock worth $4,385,000 after acquiring an additional 61,418 shares during the period. Inspire Investing LLC purchased a new position in shares of Merchants Bancorp during the second quarter valued at $390,000. American Century Companies Inc. raised its holdings in shares of Merchants Bancorp by 10.7% in the second quarter. American Century Companies Inc. now owns 567,980 shares of the company’s stock valued at $18,783,000 after acquiring an additional 55,038 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Merchants Bancorp by 17.4% during the second quarter. Geode Capital Management LLC now owns 681,486 shares of the company’s stock valued at $22,539,000 after purchasing an additional 101,139 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new position in Merchants Bancorp during the third quarter valued at approximately $879,000. 24.57% of the stock is currently owned by hedge funds and other institutional investors.

Merchants Bancorp Company Profile

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.