Independent Bank (NASDAQ:IBCP) Shares Gap Down After Earnings Miss

Independent Bank Co. (NASDAQ:IBCP)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $33.23, but opened at $31.95. Independent Bank shares last traded at $31.53, with a volume of 6,471 shares changing hands.

The financial services provider reported $0.65 EPS for the quarter, missing the consensus estimate of $0.76 by ($0.11). Independent Bank had a net margin of 21.11% and a return on equity of 16.90%. The business had revenue of $77.84 million during the quarter, compared to analysts’ expectations of $55.05 million. During the same period last year, the company earned $0.83 earnings per share.

Independent Bank Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Tuesday, November 5th will be given a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a yield of 2.95%. The ex-dividend date of this dividend is Tuesday, November 5th. Independent Bank’s dividend payout ratio is currently 30.77%.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on IBCP shares. Piper Sandler boosted their price objective on Independent Bank from $27.00 to $37.50 and gave the company a “neutral” rating in a report on Monday, July 29th. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $31.00 price target (up from $26.00) on shares of Independent Bank in a report on Monday, July 29th.

Insider Buying and Selling at Independent Bank

In other news, Director Christina Keller sold 1,400 shares of the stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $32.85, for a total transaction of $45,990.00. Following the sale, the director now directly owns 4,163 shares of the company’s stock, valued at $136,754.55. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 5.45% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Independent Bank

Large investors have recently bought and sold shares of the business. Principal Financial Group Inc. increased its position in shares of Independent Bank by 12.5% in the first quarter. Principal Financial Group Inc. now owns 270,146 shares of the financial services provider’s stock valued at $6,848,000 after buying an additional 29,977 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in Independent Bank by 86.6% in the 1st quarter. Russell Investments Group Ltd. now owns 109,203 shares of the financial services provider’s stock worth $2,768,000 after acquiring an additional 50,681 shares in the last quarter. Boston Partners purchased a new stake in Independent Bank in the 1st quarter worth $1,168,000. Acadian Asset Management LLC raised its position in Independent Bank by 27.8% during the second quarter. Acadian Asset Management LLC now owns 423,631 shares of the financial services provider’s stock worth $11,432,000 after acquiring an additional 92,148 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in Independent Bank by 14.8% during the second quarter. Bank of New York Mellon Corp now owns 206,619 shares of the financial services provider’s stock valued at $5,579,000 after purchasing an additional 26,674 shares in the last quarter. Institutional investors and hedge funds own 79.43% of the company’s stock.

Independent Bank Trading Down 0.5 %

The firm has a market cap of $680.92 million, a price-to-earnings ratio of 10.44 and a beta of 0.99. The company’s 50-day moving average price is $33.20 and its 200-day moving average price is $29.16. The company has a quick ratio of 0.88, a current ratio of 0.88 and a debt-to-equity ratio of 0.30.

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.