Allianz Asset Management GmbH Lowers Holdings in Mercantile Bank Corporation (NASDAQ:MBWM)

Key Points

• Allianz Asset Management GmbH has significantly reduced its stake in Mercantile Bank Corporation by selling 80,847 shares, resulting in a 87.3% decrease in holdings.
• Analysts have upgraded Mercantile Bank's ratings and increased price targets, with Raymond James setting a new target price of $55.00 per share.
• The company announced a quarterly dividend increase to $0.38, which equates to an annual yield of 3.4%.

Allianz Asset Management GmbH trimmed its stake in shares of Mercantile Bank Corporation (NASDAQ:MBWM - Free Report) by 87.3% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 11,732 shares of the financial services provider's stock after selling 80,847 shares during the period. Allianz Asset Management GmbH owned 0.07% of Mercantile Bank worth $510,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently bought and sold shares of the company. Millennium Management LLC grew its stake in shares of Mercantile Bank by 54.0% in the 4th quarter. Millennium Management LLC now owns 132,777 shares of the financial services provider's stock worth $5,907,000 after buying an additional 46,559 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Mercantile Bank by 48.8% in the 4th quarter. JPMorgan Chase & Co. now owns 122,532 shares of the financial services provider's stock worth $5,451,000 after purchasing an additional 40,175 shares during the period. SG Americas Securities LLC increased its position in shares of Mercantile Bank by 279.8% during the 1st quarter. SG Americas Securities LLC now owns 46,093 shares of the financial services provider's stock valued at $2,002,000 after purchasing an additional 33,956 shares during the last quarter. Raymond James Financial Inc. bought a new stake in Mercantile Bank in the fourth quarter worth $1,392,000. Finally, GAMMA Investing LLC lifted its position in Mercantile Bank by 12,808.0% in the first quarter. GAMMA Investing LLC now owns 22,589 shares of the financial services provider's stock worth $981,000 after buying an additional 22,414 shares during the last quarter. 58.63% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Raymond James Financial upgraded shares of Mercantile Bank from a "market perform" rating to an "outperform" rating and set a $55.00 price objective on the stock in a research report on Thursday, July 24th. Keefe, Bruyette & Woods upped their price target on shares of Mercantile Bank from $53.00 to $56.00 and gave the company an "outperform" rating in a report on Wednesday, July 23rd. Finally, Piper Sandler raised their price objective on shares of Mercantile Bank from $47.50 to $56.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 23rd.

Mercantile Bank Stock Performance

NASDAQ:MBWM traded down $0.45 during trading hours on Wednesday, hitting $44.59. 17,292 shares of the company were exchanged, compared to its average volume of 70,405. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.98 and a quick ratio of 0.99. Mercantile Bank Corporation has a 52-week low of $37.76 and a 52-week high of $52.98. The stock has a market capitalization of $724.59 million, a price-to-earnings ratio of 8.85 and a beta of 0.92. The company's 50 day moving average price is $46.31 and its 200-day moving average price is $45.42.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $1.39 earnings per share for the quarter, beating analysts' consensus estimates of $1.23 by $0.16. The firm had revenue of $60.90 million for the quarter, compared to analyst estimates of $60.02 million. Mercantile Bank had a net margin of 22.11% and a return on equity of 13.52%. As a group, research analysts forecast that Mercantile Bank Corporation will post 4.83 earnings per share for the current year.

Mercantile Bank Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Stockholders of record on Friday, September 5th will be paid a $0.38 dividend. The ex-dividend date is Friday, September 5th. This is a positive change from Mercantile Bank's previous quarterly dividend of $0.37. This represents a $1.52 annualized dividend and a dividend yield of 3.4%. Mercantile Bank's dividend payout ratio (DPR) is 29.37%.

About Mercantile Bank

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit.