Independent Bank (NASDAQ:IBCP) Trading Up 4.8% After Strong Earnings

Independent Bank Co. (NASDAQ:IBCP)’s share price traded up 4.8% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $36.40 and last traded at $36.48. 87,416 shares were traded during trading, a decline of 37% from the average session volume of 138,483 shares. The stock had previously closed at $34.80.

The financial services provider reported $0.87 earnings per share for the quarter, topping analysts’ consensus estimates of $0.77 by $0.10. Independent Bank had a return on equity of 15.26% and a net margin of 19.93%.

Independent Bank Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 14th. Investors of record on Tuesday, February 4th will be paid a $0.26 dividend. The ex-dividend date is Tuesday, February 4th. This represents a $1.04 dividend on an annualized basis and a yield of 2.85%. This is a boost from Independent Bank’s previous quarterly dividend of $0.24. Independent Bank’s dividend payout ratio (DPR) is currently 32.65%.

Wall Street Analyst Weigh In

Separately, Keefe, Bruyette & Woods increased their price objective on shares of Independent Bank from $33.00 to $39.00 and gave the company a “market perform” rating in a report on Wednesday, December 4th.

Insider Activity

In other Independent Bank news, EVP Gavin A. Mohr purchased 800 shares of the firm’s stock in a transaction dated Wednesday, November 20th. The shares were purchased at an average cost of $36.71 per share, with a total value of $29,368.00. Following the completion of the purchase, the executive vice president now owns 18,662 shares in the company, valued at approximately $685,082.02. This represents a 4.48 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 5.45% of the company’s stock.

Institutional Trading of Independent Bank

A number of hedge funds have recently bought and sold shares of IBCP. Charles Schwab Investment Management Inc. increased its stake in shares of Independent Bank by 202.3% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 171,090 shares of the financial services provider’s stock worth $5,706,000 after acquiring an additional 114,487 shares during the last quarter. Principal Financial Group Inc. increased its position in Independent Bank by 28.7% during the third quarter. Principal Financial Group Inc. now owns 349,631 shares of the financial services provider’s stock worth $11,660,000 after purchasing an additional 77,874 shares during the last quarter. AQR Capital Management LLC increased its position in Independent Bank by 75.8% during the second quarter. AQR Capital Management LLC now owns 174,011 shares of the financial services provider’s stock worth $4,698,000 after purchasing an additional 75,022 shares during the last quarter. FMR LLC raised its stake in Independent Bank by 7.2% during the third quarter. FMR LLC now owns 1,034,775 shares of the financial services provider’s stock worth $34,510,000 after purchasing an additional 69,504 shares during the period. Finally, Assenagon Asset Management S.A. boosted its holdings in Independent Bank by 40.6% in the 4th quarter. Assenagon Asset Management S.A. now owns 132,234 shares of the financial services provider’s stock valued at $4,606,000 after purchasing an additional 38,157 shares during the last quarter. Institutional investors and hedge funds own 79.43% of the company’s stock.

Independent Bank Stock Performance

The firm has a market cap of $762.07 million, a PE ratio of 12.41 and a beta of 1.03. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.88 and a current ratio of 0.88. The firm’s 50 day moving average price is $36.12 and its two-hundred day moving average price is $34.06.

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.