Independent Bank (NASDAQ:IBCP) Shares Gap Down After Earnings Miss

Shares of Independent Bank Co. (NASDAQ:IBCP) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $33.23, but opened at $31.95. Independent Bank shares last traded at $31.53, with a volume of 6,471 shares.

The financial services provider reported $0.65 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.76 by ($0.11). Independent Bank had a net margin of 21.11% and a return on equity of 16.90%. The company had revenue of $77.84 million for the quarter, compared to analysts’ expectations of $55.05 million. During the same period in the previous year, the business earned $0.83 EPS.

Independent Bank Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Tuesday, November 5th will be paid a dividend of $0.24 per share. The ex-dividend date of this dividend is Tuesday, November 5th. This represents a $0.96 dividend on an annualized basis and a yield of 2.95%. Independent Bank’s dividend payout ratio is presently 30.77%.

Analyst Ratings Changes

IBCP has been the topic of a number of research reports. Piper Sandler raised their price target on Independent Bank from $27.00 to $37.50 and gave the stock a “neutral” rating in a research note on Monday, July 29th. Keefe, Bruyette & Woods reissued a “market perform” rating and issued a $31.00 target price (up from $26.00) on shares of Independent Bank in a research report on Monday, July 29th.

Insiders Place Their Bets

In other news, Director Christina Keller sold 1,400 shares of the business’s stock in a transaction on Thursday, September 12th. The shares were sold at an average price of $32.85, for a total transaction of $45,990.00. Following the completion of the sale, the director now owns 4,163 shares of the company’s stock, valued at $136,754.55. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 5.45% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. nVerses Capital LLC purchased a new stake in Independent Bank in the 3rd quarter worth approximately $27,000. CWM LLC boosted its position in shares of Independent Bank by 1,729.2% in the second quarter. CWM LLC now owns 4,262 shares of the financial services provider’s stock worth $115,000 after purchasing an additional 4,029 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Independent Bank by 36.0% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,630 shares of the financial services provider’s stock worth $125,000 after purchasing an additional 1,225 shares in the last quarter. Comerica Bank purchased a new stake in shares of Independent Bank in the first quarter worth $173,000. Finally, Denali Advisors LLC raised its position in shares of Independent Bank by 64.2% during the 1st quarter. Denali Advisors LLC now owns 8,700 shares of the financial services provider’s stock valued at $221,000 after purchasing an additional 3,400 shares during the period. 79.43% of the stock is owned by hedge funds and other institutional investors.

Independent Bank Stock Performance

The company has a market cap of $680.92 million, a PE ratio of 10.44 and a beta of 0.99. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 0.30. The business’s 50 day moving average is $33.20 and its two-hundred day moving average is $29.16.

About Independent Bank

Independent Bank Corporation operates as the bank holding company for Independent Bank that provides commercial banking services to individuals and businesses in rural and suburban communities in Michigan. It offers checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services.