Merchants Bancorp (NASDAQ:MBIN) Sets New 1-Year Low – Here’s Why

Shares of Merchants Bancorp (NASDAQ:MBIN) reached a new 52-week low on Friday . The company traded as low as $35.50 and last traded at $36.12, with a volume of 12266 shares. The stock had previously closed at $36.00.

Wall Street Analyst Weigh In

Several research firms have commented on MBIN. Raymond James cut their price target on Merchants Bancorp from $58.00 to $55.00 and set an “outperform” rating for the company in a report on Tuesday, October 29th. Morgan Stanley began coverage on Merchants Bancorp in a research report on Monday, September 9th. They issued an “equal weight” rating and a $54.00 target price for the company. Finally, Piper Sandler boosted their price target on shares of Merchants Bancorp from $48.00 to $52.50 and gave the company an “overweight” rating in a report on Tuesday, November 26th.

Merchants Bancorp Price Performance

The company has a 50-day moving average of $38.78 and a 200 day moving average of $42.09. The company has a debt-to-equity ratio of 2.40, a quick ratio of 0.85 and a current ratio of 1.15. The firm has a market cap of $1.67 billion, a P/E ratio of 6.02 and a beta of 1.13.

Merchants Bancorp (NASDAQ:MBIN) last issued its earnings results on Monday, October 28th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.42 by ($0.25). The firm had revenue of $355.67 million during the quarter, compared to analyst estimates of $156.13 million. Merchants Bancorp had a net margin of 21.33% and a return on equity of 22.36%. During the same quarter in the prior year, the firm posted $1.68 EPS. On average, sell-side analysts anticipate that Merchants Bancorp will post 5.74 EPS for the current year.

Merchants Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 2nd. Stockholders of record on Friday, December 13th were issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 0.99%. The ex-dividend date of this dividend was Friday, December 13th. Merchants Bancorp’s payout ratio is 5.96%.

Insider Transactions at Merchants Bancorp

In related news, Director Patrick D. O’brien bought 40,000 shares of the company’s stock in a transaction on Monday, November 18th. The stock was bought at an average cost of $25.00 per share, with a total value of $1,000,000.00. Following the completion of the purchase, the director now owns 40,000 shares in the company, valued at approximately $1,000,000. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 39.70% of the stock is owned by company insiders.

Institutional Trading of Merchants Bancorp

A number of hedge funds and other institutional investors have recently modified their holdings of MBIN. Marshall Wace LLP lifted its holdings in Merchants Bancorp by 6,793.6% in the second quarter. Marshall Wace LLP now owns 365,290 shares of the company’s stock valued at $14,809,000 after buying an additional 359,991 shares during the period. Royce & Associates LP boosted its position in shares of Merchants Bancorp by 143.1% in the 3rd quarter. Royce & Associates LP now owns 490,189 shares of the company’s stock worth $22,039,000 after purchasing an additional 288,553 shares during the last quarter. Ovata Capital Management Ltd bought a new position in shares of Merchants Bancorp in the 2nd quarter worth $4,054,000. Dimensional Fund Advisors LP increased its holdings in Merchants Bancorp by 10.2% in the second quarter. Dimensional Fund Advisors LP now owns 1,022,893 shares of the company’s stock valued at $41,465,000 after purchasing an additional 94,781 shares during the last quarter. Finally, Foundry Partners LLC acquired a new position in Merchants Bancorp in the third quarter valued at about $3,477,000. Institutional investors and hedge funds own 24.57% of the company’s stock.

About Merchants Bancorp

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.