Merchants Bancorp (NASDAQ:MBIN) Shares Gap Down After Earnings Miss

Merchants Bancorp (NASDAQ:MBIN - Get Free Report) shares gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $43.89, but opened at $41.18. Merchants Bancorp shares last traded at $39.12, with a volume of 109,112 shares trading hands.

The company reported $1.17 EPS for the quarter, missing analysts' consensus estimates of $1.42 by ($0.25). The business had revenue of $355.67 million for the quarter, compared to the consensus estimate of $156.13 million. Merchants Bancorp had a net margin of 23.14% and a return on equity of 25.54%. During the same period in the prior year, the business earned $1.68 earnings per share.

Merchants Bancorp Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, October 1st. Stockholders of record on Friday, September 13th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 1.00%. The ex-dividend date of this dividend was Friday, September 13th. Merchants Bancorp's dividend payout ratio (DPR) is presently 5.65%.

Analysts Set New Price Targets

MBIN has been the subject of several research reports. Morgan Stanley started coverage on shares of Merchants Bancorp in a report on Monday, September 9th. They set an "equal weight" rating and a $54.00 price objective for the company. Raymond James reduced their price objective on Merchants Bancorp from $58.00 to $55.00 and set an "outperform" rating on the stock in a research note on Tuesday.

Insiders Place Their Bets

In related news, CEO Michael R. Dury bought 5,200 shares of the business's stock in a transaction dated Monday, August 5th. The shares were purchased at an average price of $38.71 per share, with a total value of $201,292.00. Following the transaction, the chief executive officer now owns 93,793 shares in the company, valued at $3,630,727.03. This trade represents a 0.00 % increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other news, CEO Michael R. Dury acquired 6,000 shares of Merchants Bancorp stock in a transaction that occurred on Wednesday, July 31st. The shares were bought at an average cost of $44.82 per share, with a total value of $268,920.00. Following the transaction, the chief executive officer now directly owns 88,593 shares of the company's stock, valued at $3,970,738.26. This trade represents a 0.00 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, CEO Michael R. Dury bought 5,200 shares of the company's stock in a transaction on Monday, August 5th. The shares were acquired at an average price of $38.71 per share, with a total value of $201,292.00. Following the transaction, the chief executive officer now directly owns 93,793 shares of the company's stock, valued at approximately $3,630,727.03. This trade represents a 0.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 39.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Merchants Bancorp

Large investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its stake in shares of Merchants Bancorp by 10.2% during 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 period. Vanguard Group Inc. increased its position in shares of Merchants Bancorp by 2.5% during the first quarter. Vanguard Group Inc. now owns 994,962 shares of the company's stock worth $42,962,000 after acquiring an additional 24,122 shares during the period. American Century Companies Inc. raised its stake in shares of Merchants Bancorp by 23.0% during the second quarter. American Century Companies Inc. now owns 370,257 shares of the company's stock valued at $15,010,000 after acquiring an additional 69,133 shares in the last quarter. Marshall Wace LLP boosted its holdings in shares of 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 purchasing an additional 359,991 shares during the period. Finally, Assenagon Asset Management S.A. grew its stake in Merchants Bancorp by 91.5% in the second quarter. Assenagon Asset Management S.A. now owns 264,464 shares of the company's stock worth $10,721,000 after purchasing an additional 126,375 shares in the last quarter. Hedge funds and other institutional investors own 24.57% of the company's stock.

Merchants Bancorp Price Performance

The company has a debt-to-equity ratio of 0.81, a quick ratio of 0.78 and a current ratio of 1.01. The firm has a fifty day simple moving average of $44.53 and a 200 day simple moving average of $43.02. The company has a market capitalization of $1.56 billion, a PE ratio of 6.14 and a beta of 1.09.

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.