Independent Bank Co. (NASDAQ:IBCP) Sees Large Increase in Short Interest

Independent Bank Co. (NASDAQ:IBCP) saw a large growth in short interest in the month of January. As of January 15th, there was short interest totalling 186,600 shares, a growth of 111.1% from the December 31st total of 88,400 shares. Based on an average daily volume of 106,400 shares, the days-to-cover ratio is currently 1.8 days. Currently, 0.9% of the company’s shares are sold short.

Independent Bank Price Performance

NASDAQ IBCP traded down $0.01 on Friday, hitting $36.38. The company had a trading volume of 54,414 shares, compared to its average volume of 141,406. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.88 and a quick ratio of 0.88. The company has a market capitalization of $759.87 million, a PE ratio of 11.51 and a beta of 1.03. Independent Bank has a 12-month low of $22.53 and a 12-month high of $40.32. The company’s fifty day moving average price is $35.93 and its 200-day moving average price is $34.38.

Independent Bank (NASDAQ:IBCP) last issued its quarterly earnings data on Thursday, January 23rd. The financial services provider reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.10. Independent Bank had a return on equity of 15.43% and a net margin of 20.67%. As a group, analysts predict that Independent Bank will post 3.22 earnings per share for the current year.

Independent Bank Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, February 14th. Shareholders of record on Tuesday, February 4th will be paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 2.86%. The ex-dividend date of this dividend is Tuesday, February 4th. This is a positive change from Independent Bank’s previous quarterly dividend of $0.24. Independent Bank’s dividend payout ratio (DPR) is 30.38%.

Insiders Place Their Bets

In related news, EVP Gavin A. Mohr acquired 800 shares of the company’s stock in a transaction that occurred on Wednesday, November 20th. The shares were bought at an average price of $36.71 per share, with a total value of $29,368.00. Following the completion of the transaction, the executive vice president now directly owns 18,662 shares in the company, valued at $685,082.02. This trade represents a 4.48 % increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 5.45% of the stock is currently owned by company insiders.

Institutional Trading of Independent Bank

Institutional investors have recently added to or reduced their stakes in the stock. FMR LLC increased its holdings in Independent Bank by 7.2% in the third quarter. FMR LLC now owns 1,034,775 shares of the financial services provider’s stock valued at $34,510,000 after buying an additional 69,504 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Independent Bank by 1.0% during the second quarter. Dimensional Fund Advisors LP now owns 985,364 shares of the financial services provider’s stock worth $26,603,000 after purchasing an additional 10,193 shares in the last quarter. State Street Corp grew its stake in Independent Bank by 4.8% during the 3rd quarter. State Street Corp now owns 647,579 shares of the financial services provider’s stock worth $21,597,000 after buying an additional 29,475 shares during the last quarter. Geode Capital Management LLC lifted its stake in Independent Bank by 0.4% in the third quarter. Geode Capital Management LLC now owns 499,546 shares of the financial services provider’s stock valued at $16,663,000 after buying an additional 1,831 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its holdings in shares of Independent Bank by 28.7% in the third quarter. Principal Financial Group Inc. now owns 349,631 shares of the financial services provider’s stock valued at $11,660,000 after acquiring an additional 77,874 shares during the period. Institutional investors and hedge funds own 79.43% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently issued reports on IBCP shares. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $41.00 price target (up from $39.00) on shares of Independent Bank in a report on Friday, January 24th. DA Davidson raised their target price on Independent Bank from $37.00 to $39.00 and gave the company a “neutral” rating in a research report on Tuesday.

About Independent Bank

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services.