Mechanics Bancorp (NASDAQ:MCHB) Shares Gap Down – Should You Sell?

Shares of Mechanics Bancorp (NASDAQ:MCHB) gapped down before the market opened on Friday . The stock had previously closed at $14.96, but opened at $14.18. Mechanics Bancorp shares last traded at $14.2710, with a volume of 41,933 shares changing hands.

Analyst Upgrades and Downgrades

MCHB has been the subject of a number of analyst reports. Cantor Fitzgerald initiated coverage on shares of Mechanics Bancorp in a research note on Friday, April 10th. They set an “overweight” rating and a $17.00 price objective for the company. Weiss Ratings lowered shares of Mechanics Bancorp from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, May 11th. Finally, Keefe, Bruyette & Woods dropped their price objective on Mechanics Bancorp from $16.00 to $15.50 and set a “market perform” rating on the stock in a report on Monday, May 4th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $16.25.

Mechanics Bancorp Stock Performance

The stock has a market capitalization of $3.16 billion, a P/E ratio of 19.04 and a beta of 1.42. The firm has a 50-day moving average of $14.80 and a 200 day moving average of $14.66. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 0.05.

Mechanics Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Saturday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, May 22nd. This is a boost from Mechanics Bancorp’s previous quarterly dividend of $0.40. This represents a $2.80 dividend on an annualized basis and a dividend yield of 19.6%. Mechanics Bancorp’s dividend payout ratio (DPR) is 213.33%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Comerica Bank acquired a new stake in shares of Mechanics Bancorp in the third quarter valued at $34,000. Fifth Third Bancorp acquired a new stake in shares of Mechanics Bancorp in the first quarter valued at $39,000. California State Teachers Retirement System acquired a new stake in shares of Mechanics Bancorp in the first quarter valued at $39,000. AlphaQuest LLC acquired a new stake in shares of Mechanics Bancorp in the third quarter valued at $45,000. Finally, BNP Paribas Financial Markets acquired a new stake in shares of Mechanics Bancorp in the third quarter valued at $48,000. 74.71% of the stock is owned by institutional investors.

About Mechanics Bancorp

HomeStreet, Inc operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences.