CEO of Merchants Bancorp‑IN Trims Preferred Shares in Quiet Insider Sale, Leaves Long‑Term Holdings Intact

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

The latest Form 4 from Petrie Michael F., Chairman and CEO, shows a string of sales of Series C Depositary Shares in the early hours of February 3, 2026. Combined, the CEO sold 10,346 shares at $20.20 apiece, reducing his holding to 45,022 shares. While the transaction size is modest relative to his total stake—he still owns more than 2 million common shares—its timing and frequency raise questions about confidence in the company’s near‑term outlook.

A Pattern of Selling, Not Buying

Looking back over the past year, Petrie has been a prolific seller of Series C shares. Between December 2025 and January 2026 he offloaded more than 30,000 units, often in batches of 1,000–5,000. In contrast, his common‑stock activity is largely passive; the only notable common‑stock sale occurred in early February 2026, when he divested 9,685 shares. This skew toward selling the preferred series suggests the CEO is trimming exposure to the more volatile, higher‑yield tranche, perhaps in anticipation of a market correction or a shift in the bank’s capital structure.

For investors, the pattern signals a cautious stance: the CEO may be hedging against potential regulatory tightening or liquidity concerns that could erode the value of Series C shares. However, the fact that his overall ownership remains substantial (over 1.9 million common shares) indicates he still believes in the company’s long‑term value.

Implications for the Stock and Capital Strategy

Merchants Bancorp‑IN’s share price is up 4.28 % this week and 19.60 % month‑to‑date, reflecting a healthy rally in the financials sector. The CEO’s sales do not appear to be triggering a sell‑off; the market price has remained steady at $42.76, only down 0.01 % from the trade price. The lack of social‑media buzz (0 % intensity) suggests the transaction is not generating headlines that could sway sentiment. Nonetheless, consistent insider selling can erode investor confidence, especially when the insider is the company’s top executive.

From a strategic perspective, the CEO’s moves may be tied to the bank’s capital planning. Merchants Bancorp‑IN’s 52‑week high was $43.77, and its current price is near that ceiling. Selling Series C units could free up capital for balance‑sheet strengthening or dividend distribution, aligning with the firm’s growth strategy in multi‑family housing and healthcare facility financing.

Petrie Michael F.: A Profile of a Cautious Leader

Petrie’s transaction history paints him as a disciplined insider. He rarely sells large blocks of common stock—his only notable sale in the last year was a 9,685‑share transaction in early February. In contrast, Series C sales are frequent, often executed at similar price points ($19–20). This pattern suggests he views Series C shares as a flexible tool for managing liquidity, rather than a core holding. His overall stake in common shares (~1.9 million) constitutes roughly 9.6 % of the outstanding shares, giving him significant voting power while still allowing him to move a portion of his portfolio without materially diluting the market.

In a period when banks face regulatory scrutiny and market volatility, Petrie’s conservative selling strategy may be a signal that he is positioning the company to weather potential shocks while maintaining a long‑term growth trajectory. Investors should monitor whether this trend continues—especially as the bank approaches its next earnings report—to gauge whether the CEO’s confidence in the company remains steady or wanes.