Merchants Bancorp (NASDAQ:MBIN) Shares Gap Down on Disappointing Earnings

Merchants Bancorp (NASDAQ:MBIN) shares gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $52.10, but opened at $50.00. Merchants Bancorp shares last traded at $46.43, with a volume of 24,859 shares trading hands.

The company reported $1.49 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.57 by ($0.08). Merchants Bancorp had a return on equity of 26.65% and a net margin of 23.55%. The firm had revenue of $359.62 million during the quarter, compared to the consensus estimate of $160.70 million. During the same quarter in the previous year, the firm earned $1.31 EPS.

Merchants Bancorp Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, July 1st. Stockholders of record on Friday, June 14th were paid a $0.09 dividend. The ex-dividend date was Friday, June 14th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.78%. Merchants Bancorp’s dividend payout ratio (DPR) is currently 5.65%.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. Piper Sandler reiterated an “overweight” rating and set a $56.00 target price (down from $58.50) on shares of Merchants Bancorp in a research report on Friday, May 17th. Raymond James downgraded shares of Merchants Bancorp from a “strong-buy” rating to an “outperform” rating and boosted their target price for the stock from $55.00 to $58.00 in a report on Tuesday.

Institutional Trading of Merchants Bancorp

Large investors have recently added to or reduced their stakes in the company. MeadowBrook Investment Advisors LLC purchased a new stake in Merchants Bancorp during the fourth quarter valued at $26,000. AJOVista LLC bought a new position in shares of Merchants Bancorp in the 4th quarter valued at about $86,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Merchants Bancorp by 79.2% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,755 shares of the company’s stock valued at $193,000 after acquiring an additional 2,101 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its position in Merchants Bancorp by 45.9% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,648 shares of the company’s stock worth $198,000 after acquiring an additional 1,463 shares in the last quarter. Finally, Wellington Wealth Strategies LLC. purchased a new stake in Merchants Bancorp during the first quarter valued at approximately $202,000. Institutional investors own 24.57% of the company’s stock.

Merchants Bancorp Trading Down 10.9 %

The company has a current ratio of 1.06, a quick ratio of 0.81 and a debt-to-equity ratio of 1.44. The company has a 50-day moving average price of $42.47 and a two-hundred day moving average price of $42.07. The stock has a market cap of $2.01 billion, a P/E ratio of 8.18 and a beta of 1.12.

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.