Merchants Bancorp (NASDAQ:MBIN) Short Interest Up 27.1% in March

Merchants Bancorp (NASDAQ:MBIN) saw a significant growth in short interest in the month of March. As of March 13th, there was short interest totaling 2,582,239 shares, a growth of 27.1% from the February 26th total of 2,032,364 shares. Based on an average daily volume of 232,980 shares, the days-to-cover ratio is currently 11.1 days. Approximately 8.6% of the company’s shares are short sold.

Merchants Bancorp Stock Up 0.7%

MBIN stock traded up $0.31 during midday trading on Monday, reaching $42.58. 23,678 shares of the company were exchanged, compared to its average volume of 330,706. The company has a market cap of $1.96 billion, a price-to-earnings ratio of 11.29 and a beta of 1.25. The company has a debt-to-equity ratio of 2.22, a quick ratio of 0.86 and a current ratio of 1.16. Merchants Bancorp has a 1-year low of $27.25 and a 1-year high of $48.50. The stock’s 50-day simple moving average is $41.98 and its 200 day simple moving average is $36.17.

Merchants Bancorp (NASDAQ:MBIN) last announced its quarterly earnings data on Wednesday, January 28th. The company reported $1.28 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.34. The company had revenue of $185.29 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 13.17%. On average, equities analysts forecast that Merchants Bancorp will post 5.54 earnings per share for the current year.

Merchants Bancorp Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be given a $0.11 dividend. This is a boost from Merchants Bancorp’s previous quarterly dividend of $0.10. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, March 13th. Merchants Bancorp’s dividend payout ratio (DPR) is presently 11.64%.

Merchants Bancorp announced that its Board of Directors has initiated a share repurchase program on Wednesday, January 28th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the company to purchase up to 6.2% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on MBIN shares. Morgan Stanley upped their price objective on Merchants Bancorp from $42.00 to $51.00 and gave the stock an “equal weight” rating in a research report on Monday, March 2nd. Zacks Research raised Merchants Bancorp from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 3rd. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Merchants Bancorp in a research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $43.25.

Insider Activity

In other Merchants Bancorp news, insider Martin A. Schroeter sold 5,500 shares of the company’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $46.06, for a total value of $253,330.00. Following the transaction, the insider owned 10,881 shares of the company’s stock, valued at $501,178.86. This represents a 33.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 34.80% of the company’s stock.

Institutional Investors Weigh In On Merchants Bancorp

Institutional investors have recently bought and sold shares of the stock. Hsbc Holdings PLC purchased a new position in Merchants Bancorp during the fourth quarter worth approximately $355,000. Invesco Ltd. raised its holdings in shares of Merchants Bancorp by 1.5% in the 4th quarter. Invesco Ltd. now owns 45,818 shares of the company’s stock worth $1,561,000 after purchasing an additional 667 shares during the period. Mackenzie Financial Corp lifted its position in Merchants Bancorp by 200.7% during the fourth quarter. Mackenzie Financial Corp now owns 57,324 shares of the company’s stock valued at $1,926,000 after buying an additional 38,262 shares in the last quarter. Numerai GP LLC purchased a new position in shares of Merchants Bancorp in the 4th quarter valued at $254,000. Finally, Man Group plc acquired a new position in shares of Merchants Bancorp during the 4th quarter valued at $1,902,000. 24.57% of the stock is currently owned by hedge funds and other institutional investors.

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.