Merchants Bancorp (NASDAQ:MBIN) Sees Unusually-High Trading Volume – Should You Buy?

Shares of Merchants Bancorp (NASDAQ:MBIN) saw unusually-strong trading volume on Tuesday . Approximately 702,228 shares were traded during mid-day trading, an increase of 200% from the previous session’s volume of 233,808 shares.The stock last traded at $45.7750 and had previously closed at $45.06.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Zacks Research upgraded shares of Merchants Bancorp from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 3rd. Raymond James Financial reaffirmed an “outperform” rating and issued a $38.00 target price (down previously from $40.00) on shares of Merchants Bancorp in a report on Wednesday, October 29th. UBS Group set a $42.00 price objective on Merchants Bancorp in a research note on Thursday, October 30th. Morgan Stanley upped their price target on shares of Merchants Bancorp from $40.00 to $42.00 and gave the company an “equal weight” rating in a research report on Friday, January 30th. Finally, Wall Street Zen upgraded shares of Merchants Bancorp from a “sell” rating to a “hold” rating in a report on Saturday, November 1st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $41.00.

Merchants Bancorp Stock Up 2.8%

The company has a market cap of $2.13 billion, a P/E ratio of 12.25 and a beta of 1.27. The firm’s 50 day moving average price is $36.12 and its two-hundred day moving average price is $33.43. The company has a debt-to-equity ratio of 1.73, a quick ratio of 0.80 and a current ratio of 1.10.

Merchants Bancorp (NASDAQ:MBIN) last posted its earnings results on Wednesday, January 28th. The company reported $1.28 EPS for the quarter, topping the consensus estimate of $0.94 by $0.34. The company had revenue of $193.49 million during the quarter, compared to the consensus estimate of $170.80 million. Merchants Bancorp had a net margin of 16.02% and a return on equity of 13.35%. Equities research analysts anticipate that Merchants Bancorp will post 5.54 EPS for the current fiscal year.

Merchants Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Monday, December 15th were issued a $0.10 dividend. The ex-dividend date was Monday, December 15th. This represents a $0.40 annualized dividend and a dividend yield of 0.9%. Merchants Bancorp’s dividend payout ratio is currently 10.58%.

Merchants Bancorp declared that its board has authorized a share repurchase plan on Wednesday, January 28th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 6.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Merchants Bancorp

A number of hedge funds and other institutional investors have recently modified their holdings of MBIN. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Merchants Bancorp by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,741 shares of the company’s stock worth $397,000 after acquiring an additional 449 shares during the period. Legal & General Group Plc grew its position in shares of Merchants Bancorp by 3.8% during the 2nd quarter. Legal & General Group Plc now owns 21,677 shares of the company’s stock valued at $717,000 after acquiring an additional 795 shares during the period. PNC Financial Services Group Inc. lifted its stake in Merchants Bancorp by 3.7% in the second quarter. PNC Financial Services Group Inc. now owns 22,967 shares of the company’s stock valued at $760,000 after purchasing an additional 811 shares during the last quarter. Ameritas Investment Partners Inc. increased its position in Merchants Bancorp by 44.6% in the second quarter. Ameritas Investment Partners Inc. now owns 2,649 shares of the company’s stock worth $88,000 after buying an additional 817 shares during the last quarter. Finally, Harbor Capital Advisors Inc. lifted its position in shares of Merchants Bancorp by 12.4% during the 4th quarter. Harbor Capital Advisors Inc. now owns 7,846 shares of the company’s stock valued at $267,000 after buying an additional 865 shares during the last quarter. Hedge funds and other institutional investors own 24.57% of the company’s stock.

Merchants Bancorp Company Profile

Merchants Bancorp (NASDAQ: MBIN) is the bank holding company for Merchants Bank, a regional financial institution headquartered in Buffalo, New York. Through its network of branches and digital platforms, the company offers a range of banking services across western and central New York. Merchants Bancorp operates as a full‐service commercial bank, serving small and medium-sized businesses, professionals, families and individuals in its core markets.

The company’s primary activities include deposit taking, commercial and consumer lending, mortgage origination, and treasury management services.