Mercantile Bank (NASDAQ:MBWM) Trading Up 6.9% Following Strong Earnings

Mercantile Bank Co. (NASDAQ:MBWM) rose 6.9% on Tuesday following a stronger than expected earnings report. The company traded as high as $47.50 and last traded at $47.26. Approximately 11,700 shares were traded during trading, a decline of 79% from the average daily volume of 55,183 shares. The stock had previously closed at $44.21.

The financial services provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.15 by $0.07. Mercantile Bank had a net margin of 21.99% and a return on equity of 14.29%.

Mercantile Bank Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 19th. Investors of record on Friday, March 7th will be given a dividend of $0.37 per share. The ex-dividend date of this dividend is Friday, March 7th. This is an increase from Mercantile Bank’s previous quarterly dividend of $0.36. This represents a $1.48 dividend on an annualized basis and a yield of 3.08%. Mercantile Bank’s dividend payout ratio (DPR) is 29.09%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Hovde Group raised Mercantile Bank from a “market perform” rating to an “outperform” rating and set a $54.00 price objective on the stock in a report on Wednesday. Keefe, Bruyette & Woods lifted their price target on shares of Mercantile Bank from $56.00 to $57.00 and gave the stock an “outperform” rating in a research note on Wednesday.

Insider Buying and Selling at Mercantile Bank

In related news, Director Robert B. Kaminski sold 5,800 shares of the stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $51.75, for a total transaction of $300,150.00. Following the completion of the sale, the director now owns 19,810 shares in the company, valued at $1,025,167.50. This trade represents a 22.65 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Over the last ninety days, insiders have sold 10,300 shares of company stock valued at $521,218. 3.08% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Mercantile Bank

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its position in Mercantile Bank by 108.7% during the 2nd quarter. AQR Capital Management LLC now owns 174,355 shares of the financial services provider’s stock worth $7,074,000 after buying an additional 90,802 shares in the last quarter. Assenagon Asset Management S.A. bought a new position in shares of Mercantile Bank in the fourth quarter worth about $3,646,000. Tributary Capital Management LLC lifted its position in shares of Mercantile Bank by 16.2% during the fourth quarter. Tributary Capital Management LLC now owns 287,487 shares of the financial services provider’s stock worth $12,790,000 after purchasing an additional 40,055 shares in the last quarter. JPMorgan Chase & Co. grew its stake in shares of Mercantile Bank by 35.1% during the third quarter. JPMorgan Chase & Co. now owns 82,357 shares of the financial services provider’s stock valued at $3,601,000 after purchasing an additional 21,411 shares during the last quarter. Finally, De Lisle Partners LLP increased its holdings in shares of Mercantile Bank by 46.9% in the third quarter. De Lisle Partners LLP now owns 55,310 shares of the financial services provider’s stock valued at $2,417,000 after purchasing an additional 17,649 shares in the last quarter. 58.63% of the stock is currently owned by institutional investors and hedge funds.

Mercantile Bank Stock Down 1.1 %

The firm’s 50-day moving average is $47.00 and its two-hundred day moving average is $45.39. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.01 and a current ratio of 1.02. The stock has a market cap of $774.56 million, a P/E ratio of 9.69 and a beta of 1.01.

About Mercantile Bank

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit.