Mercantile Bank Corporation $MBWM Shares Bought by Cubist Systematic Strategies LLC

Key Points

• Cubist Systematic Strategies LLC significantly increased its holdings in Mercantile Bank Corporation by acquiring 9,010 shares, raising their total shares to 13,894 as of the latest SEC filing.
• Mercantile Bank's quarterly dividend was raised from $0.37 to $0.38, reflecting a 3.2% dividend yield with an annualized dividend of $1.52.
• Analysts have raised their price targets for Mercantile Bank, with Piper Sandler and Keefe, Bruyette & Woods both setting new targets at $56.00, indicating a generally positive outlook on the stock.

Cubist Systematic Strategies LLC grew its stake in shares of Mercantile Bank Corporation (NASDAQ:MBWM - Free Report) by 184.5% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 13,894 shares of the financial services provider's stock after acquiring an additional 9,010 shares during the period. Cubist Systematic Strategies LLC owned about 0.09% of Mercantile Bank worth $604,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also modified their holdings of MBWM. Royal Bank of Canada increased its stake in Mercantile Bank by 5.6% in the 1st quarter. Royal Bank of Canada now owns 68,824 shares of the financial services provider's stock valued at $2,989,000 after purchasing an additional 3,621 shares in the last quarter. Magnetar Financial LLC acquired a new position in shares of Mercantile Bank during the 1st quarter worth $433,000. Trexquant Investment LP purchased a new stake in shares of Mercantile Bank in the 1st quarter worth about $419,000. Elizabeth Park Capital Advisors Ltd. acquired a new stake in Mercantile Bank in the 1st quarter valued at about $629,000. Finally, Ieq Capital LLC purchased a new position in Mercantile Bank during the 1st quarter valued at about $227,000. Institutional investors and hedge funds own 58.63% of the company's stock.

Wall Street Analysts Forecast Growth

MBWM has been the topic of several research reports. Keefe, Bruyette & Woods increased their price target on shares of Mercantile Bank from $53.00 to $56.00 and gave the company an "outperform" rating in a research report on Wednesday, July 23rd. Piper Sandler upped their target price on Mercantile Bank from $47.50 to $56.00 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. Finally, Raymond James Financial upgraded Mercantile Bank from a "market perform" rating to an "outperform" rating and set a $55.00 target price on the stock in a report on Thursday, July 24th. Three investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $55.25.

Mercantile Bank Trading Down 1.4%

NASDAQ MBWM traded down $0.67 during trading hours on Tuesday, hitting $46.78. 38,500 shares of the company's stock were exchanged, compared to its average volume of 44,979. The business's 50 day moving average is $47.65 and its 200-day moving average is $45.23. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.98 and a current ratio of 0.98. Mercantile Bank Corporation has a 12-month low of $37.76 and a 12-month high of $52.98. The firm has a market capitalization of $760.18 million, a P/E ratio of 9.28 and a beta of 0.95.

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

Mercantile Bank Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Friday, September 5th will be paid a dividend of $0.38 per share. This is an increase from Mercantile Bank's previous quarterly dividend of $0.37. This represents a $1.52 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Friday, September 5th. Mercantile Bank's payout ratio is 30.16%.

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.