BlackRock Inc. Purchases Shares of 1,534,392 Mercantile Bank Corporation $MBWM

Key Points

• BlackRock acquired 1,534,392 shares of Mercantile Bank, valued at approximately $88.1 million, giving it an 8.87% stake. Institutional investors collectively own 58.63% of the company.
• Mercantile Bank reported quarterly EPS of $1.53, exceeding the $1.32 consensus estimate, while revenue of $68.76 million was nearly in line with expectations. Analysts have a consensus “Hold” rating and an average price target of $60.40.
• The bank increased its quarterly dividend from $0.39 to $0.40 per share, implying an annualized dividend of $1.60 and a 2.7% yield.

BlackRock Inc. acquired a new stake in Mercantile Bank Corporation (NASDAQ:MBWM - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 1,534,392 shares of the financial services provider's stock, valued at approximately $88,105,000. BlackRock Inc. owned approximately 8.87% of Mercantile Bank at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in the business. Kestra Advisory Services LLC bought a new stake in Mercantile Bank during the 4th quarter worth approximately $26,000. Quadrant Capital Group LLC grew its holdings in shares of Mercantile Bank by 63.8% in the fourth quarter. Quadrant Capital Group LLC now owns 891 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 347 shares in the last quarter. PNC Financial Services Group Inc. increased its position in shares of Mercantile Bank by 29.9% during the first quarter. PNC Financial Services Group Inc. now owns 1,682 shares of the financial services provider's stock valued at $85,000 after acquiring an additional 387 shares during the last quarter. Aquatic Capital Management LLC lifted its holdings in Mercantile Bank by 94.9% during the third 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 period. Finally, Quantbot Technologies LP boosted its position in Mercantile Bank by 251.9% in the second quarter. Quantbot Technologies LP now owns 4,370 shares of the financial services provider's stock worth $203,000 after purchasing an additional 3,128 shares during the last quarter. Institutional investors own 58.63% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on MBWM. Keefe, Bruyette & Woods raised 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. Weiss Ratings restated a "buy (b)" rating on shares of Mercantile Bank in a research report on Friday, June 12th. Piper Sandler set a $65.00 price objective on shares of Mercantile Bank in a report on Wednesday, July 22nd. Finally, Hovde Group downgraded shares of Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 target price for the company. in a research report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $60.40.

Mercantile Bank Stock Performance

Shares of MBWM opened at $60.21 on Friday. Mercantile Bank Corporation has a 52-week low of $42.75 and a 52-week high of $62.39. The stock's 50-day simple moving average is $58.89 and its 200 day simple moving average is $54.45. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.93 and a current ratio of 0.93. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 10.60 and a beta of 0.79.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.32 by $0.21. The firm had revenue of $68.76 million for the quarter, compared to the consensus estimate of $68.81 million. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. Research analysts forecast that Mercantile Bank Corporation will post 5.7 EPS for the current fiscal year.

Mercantile Bank Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Friday, September 4th will be given a dividend of $0.40 per share. This is an increase from Mercantile Bank's previous quarterly dividend of $0.39. The ex-dividend date is Friday, September 4th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.7%. Mercantile Bank's dividend payout ratio (DPR) is presently 27.46%.

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.

Want to see what other hedge funds are holding MBWM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Mercantile Bank Corporation (NASDAQ:MBWM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source