Mercantile Bank Corporation (NASDAQ:MBWM) Stock Has Consensus Price Target of $62.00

Key Points

• Analysts hold a “Moderate Buy” consensus on Mercantile Bank, with an average 12-month price target of $62.00. Ratings include three holds, two buys, and one strong buy.
• Institutional ownership stands at 58.63%, with several firms—including North Star Asset Management and Bank of New York Mellon—establishing new positions during the second quarter.
• Mercantile Bank exceeded quarterly earnings expectations, reporting $1.53 in EPS versus a $1.32 consensus estimate, and raised its quarterly dividend to $0.40, equivalent to a 2.7% annualized yield.

Shares of Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) have earned an average recommendation of "Moderate Buy" from the six brokerages that are presently covering the company, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $62.00.

A number of equities research analysts have recently issued reports on the stock. Piper Sandler set a $65.00 target price on shares of Mercantile Bank in a research note on Wednesday, July 22nd. Raymond James Financial started coverage on Mercantile Bank in a research note on Tuesday, September 1st. They issued an "outperform" rating and a $65.00 price target for the company. Hovde Group lowered Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price objective for the company. in a report on Wednesday, July 22nd. Weiss Ratings upgraded Mercantile Bank from a "buy (b)" rating to a "buy (a-)" rating in a research note on Friday. Finally, Keefe, Bruyette & Woods upped their price objective on Mercantile Bank from $60.00 to $64.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd.

Institutional Investors Weigh In On Mercantile Bank

Institutional investors have recently made changes to their positions in the company. De Lisle Partners LLP bought a new position in shares of Mercantile Bank in the 2nd quarter worth about $4,346,000. Man Group plc bought a new stake in shares of Mercantile Bank during the 2nd quarter valued at about $1,144,000. North Star Asset Management Inc. bought a new stake in shares of Mercantile Bank during the 2nd quarter valued at about $21,672,000. Focus Partners Advisor Solutions LLC bought a new stake in shares of Mercantile Bank during the 2nd quarter valued at about $1,305,000. Finally, Bank of New York Mellon Corp acquired a new stake in Mercantile Bank during the second quarter worth about $5,633,000. 58.63% of the stock is currently owned by institutional investors.

Mercantile Bank Trading Up 0.9%

MBWM opened at $58.29 on Tuesday. The stock has a market capitalization of $1.01 billion, a PE ratio of 10.26 and a beta of 0.83. The firm's fifty day moving average price is $60.18 and its 200 day moving average price is $56.20. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.93 and a quick ratio of 0.93. Mercantile Bank has a 12-month low of $42.75 and a 12-month high of $62.95.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last announced 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 company had revenue of $68.76 million during the quarter, compared to analyst estimates of $68.81 million. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. As a group, research analysts expect that Mercantile Bank will post 5.69 EPS for the current fiscal year.

Mercantile Bank Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Friday, September 4th were given a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.7%. The ex-dividend date was Friday, September 4th. This is a positive change from Mercantile Bank's previous quarterly dividend of $0.39. Mercantile Bank's payout ratio is 28.17%.

About Mercantile Bank

Mercantile Bank Corporation is a bank holding company headquartered in Grand Rapids, Michigan. Through its subsidiary, Mercantile Bank, the company provides commercial and retail banking services to businesses, professionals and individuals. The bank primarily serves communities across Michigan, with a focus on relationship-based banking and locally oriented financial services.

Mercantile Bank offers a range of deposit products, including checking, savings, money market and certificate of deposit accounts.

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