Mercantile Bank Corporation (NASDAQ:MBWM) Stock Has Consensus Price Target of $62.20 According to Analysts

Key Points

• Analyst sentiment is moderately positive: Six analysts split evenly between buy and hold ratings, with a consensus 12-month price target of $62.20.
• Mercantile Bank beat quarterly estimates, reporting earnings of $1.42 per share versus $1.35 expected and revenue of $73.2 million versus $70.84 million forecast.
• The bank declared a quarterly dividend of $0.40 per share, equivalent to $1.60 annually and a 2.6% yield.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) has earned a consensus rating of "Moderate Buy" from the six research firms that are covering the company, MarketBeat.com reports. Three analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $62.20.

Several equities research analysts have recently commented on MBWM shares. 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 research note on Wednesday, July 22nd. Piper Sandler set a $65.00 target price on shares of Mercantile Bank in a research note on Wednesday, July 22nd. Raymond James Financial assumed coverage on shares of Mercantile Bank in a research note on Tuesday, September 1st. They issued an "outperform" rating and a $65.00 price objective for the company. Weiss Ratings downgraded Mercantile Bank from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Friday, October 23rd. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Mercantile Bank from $64.00 to $65.00 and gave the company an "outperform" rating in a research report on Wednesday, October 21st.

Institutional Inflows and Outflows

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

Mercantile Bank Price Performance

Shares of Mercantile Bank stock opened at $60.57 on Friday. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.60. The firm's 50-day moving average price is $59.82 and its two-hundred day moving average price is $55.67. Mercantile Bank has a 1-year low of $43.00 and a 1-year high of $63.40. The stock 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 - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The financial services provider reported $1.42 earnings per share for the quarter, topping analysts' consensus estimates of $1.35 by $0.07. Mercantile Bank had a return on equity of 13.37% and a net margin of 24.42%. The business had revenue of $73.20 million for the quarter, compared to analyst estimates of $70.84 million. On average, equities analysts predict that Mercantile Bank will post 5.75 earnings per share for the current fiscal year.

Mercantile Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 16th. Investors of record on Friday, December 4th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, December 4th. This represents a $1.60 annualized dividend and a dividend yield of 2.6%. Mercantile Bank's dividend payout ratio (DPR) is 28.52%.

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.

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