Merchants Bancorp (NASDAQ:MBIN) to Buyback $100.00 million in Shares

Merchants Bancorp (NASDAQ:MBIN) declared that its board has initiated a stock buyback program on Wednesday, January 28th, RTT News reports. The company plans to buyback $100.00 million in shares. This buyback authorization allows the company to purchase up to 6.2% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Merchants Bancorp Trading Down 1.1%

Shares of NASDAQ MBIN traded down $0.38 during midday trading on Wednesday, reaching $34.95. 280,656 shares of the stock were exchanged, compared to its average volume of 124,149. The company has a market capitalization of $1.60 billion, a P/E ratio of 8.03 and a beta of 1.25. The company has a current ratio of 1.10, a quick ratio of 0.80 and a debt-to-equity ratio of 1.73. Merchants Bancorp has a 52-week low of $27.25 and a 52-week high of $43.82. The stock has a 50 day moving average price of $34.49 and a 200-day moving average price of $33.01.

Merchants Bancorp (NASDAQ:MBIN) last posted its quarterly earnings results on Wednesday, January 28th. The company reported $1.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.94 by $0.34. Merchants Bancorp had a net margin of 17.73% and a return on equity of 15.20%. Equities research analysts expect that Merchants Bancorp will post 5.54 earnings per share for the current fiscal year.

Merchants Bancorp Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Shareholders of record on Monday, December 15th were given a $0.10 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.40 annualized dividend and a yield of 1.1%. Merchants Bancorp’s dividend payout ratio (DPR) is 9.20%.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on MBIN. Piper Sandler reaffirmed an “overweight” rating and set a $42.00 price target (up from $41.00) on shares of Merchants Bancorp in a report on Thursday, October 30th. Weiss Ratings restated a “hold (c+)” rating on shares of Merchants Bancorp in a research report on Monday, December 29th. UBS Group set a $42.00 target price on shares of Merchants Bancorp in a report on Thursday, October 30th. Raymond James Financial reiterated an “outperform” rating and set a $38.00 price target (down from $40.00) on shares of Merchants Bancorp in a research note on Wednesday, October 29th. Finally, Wall Street Zen upgraded shares of Merchants Bancorp from a “sell” rating to a “hold” rating in a research report on Saturday, November 1st. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $40.25.

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.