Cornercap Investment Counsel Inc., a notable investment management firm, recently acquired a new stake in Merchants Bancorp (NASDAQ:MBIN) during the first quarter of this year. The purchase was disclosed in their most recent 13F filing with the Securities and Exchange Commission (SEC). Cornercap Investment Counsel Inc. obtained 41,040 shares of Merchants Bancorp’s stock, valued at around $1,069,000. At the time of filing, the firm owned approximately 0.09% of the company.
Merchants Bancorp, an American financial holding company with its headquarters in Carmel, Indiana, announced its earnings results for the second quarter on Thursday, July 27th. The company reported earnings per share (EPS) of $1.31 for the quarter, surpassing analysts’ consensus estimates by $0.08. This positive development showcased Merchants Bancorp’s ability to outperform market expectations.
Additionally, Merchants Bancorp boasted a return on equity of 23.95% and a net margin of 26.77%. The business generated revenue amounting to $135.50 million for the quarter—exceeding analyst predictions of $122.90 million. These impressive figures indicate that Merchants Bancorp is on track for a successful fiscal year.
Various equities research analysts have expressed their views on MBIN shares as well. Piper Sandler, a renowned investment banking firm, raised its price target from $31.00 to $38.00 and granted Merchants Bancorp an “overweight” rating in its research report published on Monday, July 31st. Similarly, Raymond James lifted their price target from $38.00 to $41.00 and assigned the stock with a “strong-buy” rating in another research report released on Monday, July 31st.
Overall, these recent developments highlight Cornercap Investment Counsel Inc.’s purchase and subsequent ownership of Merchants Bancorp’s shares. The company’s positive earnings results, which exceeded analysts’ predictions, further solidify confidence in its performance. With endorsements from reputable investment firms such as Piper Sandler and Raymond James, Merchants Bancorp appears to be positioned for continued success in the current fiscal year.
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Institutional Investors and Insiders Show Confidence in Merchants Bancorp with Increased Holdings and Positive Outlook
Merchants Bancorp, a financial institution with a market capitalization of $1.26 billion, has recently undergone changes in its ownership as several hedge funds and institutional investors have made adjustments to their positions. One notable company that increased its holdings in Merchants Bancorp is BlackRock Inc., which boosted its shares by 49.2% during the first quarter. This move resulted in BlackRock Inc. now owning 1,787,815 shares of the company’s stock valued at $48,949,000.
Another prominent investor, Vanguard Group Inc., also increased its holdings in Merchants Bancorp by 31.4% during the first quarter. As a result, Vanguard Group Inc. now possesses 788,591 shares of the company’s stock valued at $21,592,000.
JPMorgan Chase & Co., on the other hand, significantly boosted its stake in Merchants Bancorp by 92.5% during the fourth quarter, acquiring an additional 167,505 shares and bringing their total to 348,538 shares worth approximately $8,476,000.
Moreover, Dimensional Fund Advisors LP increased its holdings in Merchants Bancorp by 53.9% during the first quarter and now owns 388,830 shares worth $10,647,000 after acquiring an additional 136,211 shares.
Lastly, State Street Corp also participated in this trend by increasing its holdings in Merchants Bancorp by 51.9% during the first quarter. State Street Corp now owns 349,281 shares valued at $9,587,000 after acquiring an additional 1192699shares.
Overall about nearly one-quarter (23.75%) of the total stock is currently owned by institutional investors and hedge funds.
In terms of stock performance and trading activity on Friday August26th2023 , Mercnhats Bancorpsaw a dropof $0 .01 from previous closing, reaching $29.09 at midday trading. The volume of shares traded stood at 9,887 compared to an average volume of 68,816. When looking at the stock’s moving averages, Merchants Bancorp has a fifty-day simple moving average of $28.48 and a two hundred-day simple moving average of $27.09.
Merchants Bancorp has achieved a high pointof $33.58 in the past year while its lowest point remainedat $21.50 . These numbers indicate slight volatility in stock prices within the last twelve months.
Analysts have recently shared their insights on Merchants Bancorp’s performance and prospects. Piper Sandler, for example, raised their price target on the company’s stock from $31 to $38 and rated it “overweight” in a research report published on July 31st. Similarly, Raymond James also increased their price target from $38 to $41 and labeled the stock as “strong-buy” in their research report published on the same day.
In terms of dividends, Merchants Bancorp recently declared a quarterly dividend that will be paid out on October 2nd to shareholders of record as of September 15th. The dividend is set at $0.08 per share, resulting in an annualized dividend yield of 1.10% and an annualized payout ratio (DPR) of 6.78%.
Recent insider activity includes CEO Michael F.Petrie purchasing 1,200 shares on August7thfor an average price of$22 .14 per share with a total investment value of $26 ,568 . Correspondingly , Director Patrick D.O’brien bought4 ,500 shares on June13ththis year at an average cost per shareof$22 .25 , totaling$100 ,125in investment value . Another notable move occurred when CEO Michael F.Petrie purchased additional1 ,200 shareson August7that an average price of $22.14 per share, resulting in a total value of $26,568.Lastly, it is worth mentioning that insiders have purchased a total of5 ,715 shares valued at $127 ,013in the past 90 days.The SEC filing including relevant details can be found on the Merchants Bancorp’s official website.
This recent wave of acquisitions by institutional investors and insiders showcases their positive outlook on Merchants Bancorp’s future prospects. With the increased holdings and favorable insights from analysts, it will be interesting to observe how these developments impact the company’s overall performance in the coming months.
