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

Independent Bank Corp. (NASDAQ:INDB)’s stock price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $87.17, but opened at $80.70. Independent Bank shares last traded at $80.3540, with a volume of 86,960 shares changing hands.

The bank reported $1.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.09). Independent Bank had a return on equity of 9.17% and a net margin of 20.31%.The firm had revenue of $253.32 million for the quarter, compared to analyst estimates of $257.50 million.

Independent Bank Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Monday, June 29th were issued a dividend of $0.64 per share. This represents a $2.56 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Monday, June 29th. Independent Bank’s dividend payout ratio is 50.79%.

Key Independent Bank News

Here are the key news stories impacting Independent Bank this week:

• Negative Sentiment: Independent Bank reported Q2 earnings of $1.70 per share, missing estimates of $1.77 to $1.79, while revenue of $253.3 million also came in below forecasts. Independent Bank Corp. Reports Second Quarter Net Income of $81.8 Million
• Neutral Sentiment: The company’s second-quarter net income rose to $81.8 million from $79.9 million in the prior quarter, and EPS improved sequentially from $1.63, showing some operational progress even as results missed expectations. Independent Bank Corp. Reports Second Quarter Net Income of $81.8 Million
• Negative Sentiment: Market commentary following the release emphasized that the stock was under pressure because the results missed sales and earnings expectations, overshadowing the company’s solid profitability metrics such as a 19.14% net margin and 8.66% return on equity. Why Independent Bank (INDB) shares are getting obliterated today

Analysts Set New Price Targets

A number of brokerages recently issued reports on INDB. Keefe, Bruyette & Woods decreased their price objective on shares of Independent Bank from $96.00 to $94.00 and set an “outperform” rating on the stock in a research note on Monday, April 20th. Weiss Ratings upgraded Independent Bank from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 8th. Barclays raised their target price on Independent Bank from $80.00 to $82.00 and gave the company an “underweight” rating in a report on Tuesday, April 7th. Stephens assumed coverage on Independent Bank in a research note on Wednesday, April 15th. They issued an “overweight” rating and a $88.00 price target on the stock. Finally, Hovde Group initiated coverage on Independent Bank in a report on Friday, May 15th. They set an “outperform” rating and a $95.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $91.57.

Insider Buying and Selling at Independent Bank

In related news, Director Joseph C. Lerner sold 2,832 shares of Independent Bank stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $77.31, for a total transaction of $218,941.92. Following the sale, the director directly owned 16,215 shares of the company’s stock, valued at approximately $1,253,581.65. The trade was a 14.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Independent Bank

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Harbor Capital Advisors Inc. lifted its holdings in Independent Bank by 1.1% during the fourth quarter. Harbor Capital Advisors Inc. now owns 12,731 shares of the bank’s stock valued at $930,000 after purchasing an additional 134 shares during the last quarter. Xponance LLC increased its stake in shares of Independent Bank by 3.6% in the fourth quarter. Xponance LLC now owns 3,981 shares of the bank’s stock worth $291,000 after purchasing an additional 140 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Independent Bank by 26.1% in the fourth quarter. EverSource Wealth Advisors LLC now owns 705 shares of the bank’s stock worth $52,000 after purchasing an additional 146 shares in the last quarter. Vanguard Personalized Indexing Management LLC raised its position in shares of Independent Bank by 2.0% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 8,303 shares of the bank’s stock valued at $607,000 after purchasing an additional 161 shares during the period. Finally, Wealth Enhancement Advisory Services LLC raised its position in shares of Independent Bank by 0.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 24,246 shares of the bank’s stock valued at $1,821,000 after purchasing an additional 177 shares during the period. Institutional investors own 83.40% of the company’s stock.

Independent Bank Stock Down 3.1%

The company has a market capitalization of $4.08 billion, a PE ratio of 15.25 and a beta of 0.77. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.94 and a current ratio of 0.94. The stock’s 50 day moving average is $81.15 and its 200 day moving average is $79.25.

Independent Bank Company Profile

Independent Bank Group, Inc (NASDAQ:INDB) is a bank holding company headquartered in McKinney, Texas, that provides a range of financial services through its wholly owned subsidiary, Independent Bank. Tracing its roots to the late 19th century, the company has grown from a single community bank into a regional financial institution serving individuals, small businesses and commercial clients. Independent Bank Group became a bank holding company in 1983 and expanded its footprint through organic growth and strategic acquisitions.

The company’s primary business activities encompass retail and commercial banking, including deposit products, consumer and business lending and credit services.