Mercantile Bank Corporation (NASDAQ:MBWM) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Mercantile Bank, with four holds and three buys among seven covering brokerages. The average 12-month price target is $62.00, near the stock’s reported $60.38 price.
• Mercantile Bank exceeded quarterly earnings expectations, reporting $1.53 in EPS versus a $1.32 consensus estimate, while revenue of $68.76 million was essentially in line with forecasts.
• The company increased its quarterly dividend from $0.39 to $0.40 per share, representing a $1.60 annualized payout and a 2.6% yield; institutional investors own 58.63% of the stock.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) has been given an average recommendation of "Hold" by the seven brokerages that are covering the firm, MarketBeat reports. Four analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $62.00.

MBWM has been the topic of several recent research reports. Raymond James Financial initiated coverage on shares of Mercantile Bank in a research report on Tuesday, September 1st. They issued an "outperform" rating and a $65.00 price target on the stock. Hovde Group downgraded shares of Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price objective for the company. in a research report on Wednesday, July 22nd. Piper Sandler set a $65.00 price objective on Mercantile Bank in a research note on Wednesday, July 22nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Mercantile Bank in a report on Wednesday, September 9th. Finally, Keefe, Bruyette & Woods lifted their target price on Mercantile Bank from $60.00 to $64.00 and gave the company an "outperform" rating in a research report on Wednesday, July 22nd.

Mercantile Bank Trading Down 0.3%

Mercantile Bank stock opened at $60.38 on Friday. Mercantile Bank has a 52-week low of $42.75 and a 52-week high of $62.95. The company has a market cap of $1.04 billion, a P/E ratio of 10.63 and a beta of 0.80. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.59. The business has a 50-day simple moving average of $60.07 and a two-hundred day simple moving average of $55.19.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last issued its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.21. The firm had revenue of $68.76 million for the quarter, compared to analysts' expectations of $68.81 million. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. Analysts predict that Mercantile Bank will post 5.69 EPS for the current year.

Mercantile Bank Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Friday, September 4th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.6%. This is an increase from Mercantile Bank's previous quarterly dividend of $0.39. The ex-dividend date of this dividend was Friday, September 4th. Mercantile Bank's dividend payout ratio is 28.17%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. purchased a new stake in Mercantile Bank in the 2nd quarter worth $88,105,000. North Star Asset Management Inc. purchased a new position in shares of Mercantile Bank in the second quarter valued at about $21,672,000. Bank of New York Mellon Corp purchased a new position in shares of Mercantile Bank in the second quarter valued at about $5,633,000. De Lisle Partners LLP bought a new position in shares of Mercantile Bank in the second quarter worth about $4,346,000. Finally, Siena Capital Partners GP LLC boosted its stake in shares of Mercantile Bank by 319.8% in the fourth quarter. Siena Capital Partners GP LLC now owns 83,966 shares of the financial services provider's stock worth $4,039,000 after acquiring an additional 63,966 shares during the period. 58.63% of the stock is currently owned by institutional investors.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company headquartered in Grand Rapids, Michigan. Through its principal subsidiary, Mercantile Bank, the company provides banking and financial services to businesses, individuals and organizations.

The bank's offerings include commercial and industrial lending, commercial real estate financing, construction loans, residential mortgage loans and consumer credit. It also provides deposit accounts, treasury and cash-management services, online and mobile banking, and other financial services designed to support business and personal banking needs.

Founded in 1997, Mercantile Bank has developed a community-oriented banking model focused primarily on commercial relationships and local markets.

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