CEO of Merchants Bancorp‑IN Sells 4,455 Series C Shares Amid Insider‑Sale Surge – What It Means for Investors

Insider Selling Spree at Merchants Bancorp‑IN: What It Means for the Bank

The latest filing shows Chairman and CEO Petrie Michael F. liquidated 4,455 Series C depositary shares on February 10, 2026, trimming his stake from 18,808 to 18,308 shares. This sale comes amid a week‑long cascade of off‑balance‑sheet transactions that has reduced his cumulative Series C holdings from 57,772 shares in early December 2025 to just over 18,000 today. While the individual trade is small relative to his total position, the timing and volume of his activity raise questions about management’s confidence in the bank’s near‑term prospects.

Implications for Investors

Petrie’s brisk selling in February—concurrently with a 12 % weekly gain on the stock—suggests that he may be rebalancing his portfolio rather than reacting to a fundamental shift. Nevertheless, a sustained sell‑side trend by the CEO can erode investor confidence, especially when it occurs shortly after the bank’s quarterly results show a modest 9 % year‑over‑year rise in earnings. For shareholders, the key takeaway is that the bank’s valuation remains strong, with a 12.15 price‑earnings ratio and a 52‑week high of $47.09, but any additional insider pressure could compress the upside potential.

A Profile of Petrie Michael F.

Petrie’s transaction history is characterized by incremental, systematic divestitures of Series C shares. From December 2025 through February 2026 he sold more than 30,000 shares, averaging roughly 1,000 shares per trade. His trades are typically executed at the prevailing market price (around $20–$21 for Series C), indicating a neutral stance rather than a fire‑sale. His remaining holdings in common stock—over 2.6 million shares—remain sizable, suggesting he still maintains a long‑term equity position in the company. Historically, the CEO’s selling pattern aligns with a “normal” insider selling window: he sells during periods of market volatility but retains a substantial stake, signaling confidence in the bank’s fundamentals.

What the Broader Insider Activity Suggests

Other executives have also reduced their positions in the past week. President‑Warehouse Lending Martin Schroeter sold 5,500 common shares, and senior officers such as the COO and CFO executed a handful of sales. While isolated trades can be routine, the clustering of sales across the leadership team may indicate an internal consensus that the market is overvalued or that the bank’s growth trajectory will plateau. Investors should monitor whether this trend continues into the next quarterly cycle, as it could presage a shift in strategy or a forthcoming capital‑raising event.

Bottom Line for Stakeholders

Merchants Bancorp‑IN remains fundamentally sound, with robust asset quality and a healthy capital profile. Petrie’s incremental sales, though modest, signal a potential reassessment of risk by the management team. For long‑term investors, the current share price still offers attractive upside relative to the bank’s earnings and cash‑flow generation. However, the concentration of insider selling warrants vigilance; a sustained decline could foreshadow a more aggressive restructuring or a change in executive leadership. As the bank moves toward its next earnings release, market participants should weigh the insider sentiment against the underlying financial metrics to make informed allocation decisions.