Mercantile Bank (NASDAQ:MBWM) Sets New 12-Month High on Strong Earnings

Mercantile Bank Corporation (NASDAQ:MBWM) hit a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $53.76 and last traded at $53.3450, with a volume of 30647 shares. The stock had previously closed at $50.63.

The financial services provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.37 by $0.03. Mercantile Bank had a return on equity of 14.03% and a net margin of 23.87%.The company had revenue of $62.07 million for the quarter, compared to analyst estimates of $62.25 million.

Mercantile Bank Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 18th. Shareholders of record on Friday, March 6th will be issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Friday, March 6th. This is a positive change from Mercantile Bank’s previous quarterly dividend of $0.38. Mercantile Bank’s dividend payout ratio (DPR) is currently 27.84%.

Analyst Ratings Changes

Several research firms have recently weighed in on MBWM. Piper Sandler set a $57.00 price objective on shares of Mercantile Bank in a research note on Wednesday. Keefe, Bruyette & Woods lifted their price target on shares of Mercantile Bank from $56.00 to $57.00 and gave the company an “outperform” rating in a research note on Wednesday. Hovde Group upped their price objective on shares of Mercantile Bank from $53.00 to $56.00 and gave the company an “outperform” rating in a report on Thursday, December 18th. Raymond James Financial set a $57.00 target price on Mercantile Bank in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Mercantile Bank in a research report on Monday, December 29th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $56.75.

Insider Activity at Mercantile Bank

In other Mercantile Bank news, Director Nelson F. Sanchez bought 1,000 shares of the stock in a transaction that occurred on Friday, October 31st. The shares were bought at an average price of $43.50 per share, for a total transaction of $43,500.00. Following the acquisition, the director directly owned 3,502 shares of the company’s stock, valued at approximately $152,337. The trade was a 39.97% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.20% of the stock is currently owned by insiders.

Institutional Trading of Mercantile Bank

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue bought a new position in shares of Mercantile Bank in the third quarter valued at approximately $29,000. Jones Financial Companies Lllp raised its position in Mercantile Bank by 116.0% in the 3rd quarter. Jones Financial Companies Lllp now owns 838 shares of the financial services provider’s stock valued at $38,000 after buying an additional 450 shares during the last quarter. Ameritas Advisory Services LLC bought a new position in Mercantile Bank during the 2nd quarter valued at $42,000. Farther Finance Advisors LLC bought a new position in Mercantile Bank during the 2nd quarter valued at $54,000. Finally, Aquatic Capital Management LLC boosted its holdings in Mercantile Bank by 94.9% during the 3rd quarter. Aquatic Capital Management LLC now owns 3,235 shares of the financial services provider’s stock worth $146,000 after acquiring an additional 1,575 shares during the last quarter. 58.63% of the stock is owned by institutional investors.

Mercantile Bank Stock Performance

The company’s 50 day moving average price is $48.17 and its 200-day moving average price is $47.13. The stock has a market cap of $915.87 million, a P/E ratio of 9.76 and a beta of 0.89. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.97 and a current ratio of 0.98.

About Mercantile Bank

Mercantile Bank Corporation (NASDAQ: MBWM) is the bank holding company for Mercantile Bank of Michigan, a full-service commercial bank headquartered in Grand Rapids, Michigan. Through its state-chartered subsidiary, the company provides a broad range of financial products and services to small and mid-sized businesses, professionals and consumers across West and Central Michigan.

The bank’s core offerings include deposit products such as checking, savings and money market accounts, alongside commercial and consumer loan portfolios.