Mercantile Bank (NASDAQ:MBWM) Reaches New 12-Month High – What’s Next?

Mercantile Bank Corporation (NASDAQ:MBWM) shares reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $63.41 and last traded at $62.1550, with a volume of 14,339 shares. The stock had previously closed at $61.56.

Wall Street Analysts Forecast Growth

MBWM has been the topic of several analyst reports. Keefe, Bruyette & Woods increased their target price on shares of Mercantile Bank from $64.00 to $65.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 21st. Piper Sandler set a $65.00 price target on shares of Mercantile Bank in a report on Wednesday, July 22nd. Raymond James Financial started coverage on Mercantile Bank in a research note on Tuesday, September 1st. They set an “outperform” rating and a $65.00 target price for the company. Hovde Group downgraded Mercantile Bank from an “outperform” rating to a “market perform” rating and set a $62.00 target price on the stock. in a research note on Wednesday, July 22nd. Finally, Weiss Ratings downgraded shares of Mercantile Bank from a “buy (a-)” rating to a “buy (b+)” rating in a report on Friday, October 23rd. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $62.20.

Mercantile Bank Stock Performance

The firm has a 50-day simple moving average of $59.82 and a two-hundred day simple moving average of $55.67. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.93 and a current ratio of 0.93. The company has a market capitalization of $1.05 billion, a price-to-earnings ratio of 10.80 and a beta of 0.82.

Mercantile Bank (NASDAQ:MBWM) last posted its quarterly earnings data on Tuesday, October 20th. The financial services provider reported $1.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.07. Mercantile Bank had a net margin of 24.42% and a return on equity of 13.37%. The company had revenue of $73.20 million for the quarter, compared to analyst estimates of $70.84 million. On average, sell-side analysts anticipate that Mercantile Bank Corporation will post 5.75 EPS for the current fiscal year.

Mercantile Bank Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 16th. Investors of record on Friday, December 4th will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Friday, December 4th. Mercantile Bank’s payout ratio is presently 28.52%.

Institutional Trading of Mercantile Bank

Several hedge funds have recently modified their holdings of the company. Greenleaf Trust raised its holdings in Mercantile Bank by 4.1% in the 3rd quarter. Greenleaf Trust now owns 5,233 shares of the financial services provider’s stock worth $305,000 after purchasing an additional 204 shares during the period. Arizona State Retirement System increased its position in Mercantile Bank by 6.8% in the 2nd quarter. Arizona State Retirement System now owns 4,528 shares of the financial services provider’s stock valued at $260,000 after acquiring an additional 287 shares during the period. DGS Capital Management LLC boosted its stake in shares of Mercantile Bank by 6.8% during the 1st quarter. DGS Capital Management LLC now owns 4,676 shares of the financial services provider’s stock valued at $236,000 after buying an additional 299 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in Mercantile Bank by 4.1% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 8,986 shares of the financial services provider’s stock valued at $524,000 after buying an additional 355 shares during the period. Finally, PNC Financial Services Group Inc. increased its holdings in Mercantile Bank by 29.9% in the first quarter. PNC Financial Services Group Inc. now owns 1,682 shares of the financial services provider’s stock valued at $85,000 after purchasing an additional 387 shares during the last quarter. 58.63% of the stock is owned by hedge funds and other institutional investors.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company that operates through its subsidiary, Mercantile Bank. Headquartered in Grand Rapids, Michigan, the bank serves businesses, individuals and organizations primarily across Michigan.

Mercantile Bank offers commercial and retail banking products, including business loans, commercial real estate and construction financing, lines of credit, residential mortgage lending, consumer loans, deposit accounts and cash-management services. Its treasury-management offerings are designed to support businesses with payment processing, liquidity management and related banking needs.

Founded in 1997, Mercantile Bank has developed a community-banking model focused on relationship-based service and local decision-making.