Goldman Sachs Group Inc. Lowers Stake in Mercantile Bank Corporation $MBWM

Key Points

• Goldman Sachs Group Inc. reduced its stake in Mercantile Bank Corporation by 24.6%, selling 31,452 shares, and now owns approximately 96,275 shares valued at around $4.18 million.
• Mercantile Bank recently reported earnings of $1.39 per share, exceeding analyst estimates, with revenues reaching $60.90 million for the quarter.
• The company has increased its quarterly dividend to $0.38, resulting in an annualized dividend of $1.52 and a yield of 3.2%.

Goldman Sachs Group Inc. trimmed its stake in Mercantile Bank Corporation (NASDAQ:MBWM - Free Report) by 24.6% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 96,275 shares of the financial services provider's stock after selling 31,452 shares during the period. Goldman Sachs Group Inc. owned 0.59% of Mercantile Bank worth $4,182,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Virtus Advisers LLC purchased a new stake in shares of Mercantile Bank in the 1st quarter worth about $39,000. Point72 Asset Management L.P. purchased a new stake in shares of Mercantile Bank in the 4th quarter worth about $102,000. Squarepoint Ops LLC purchased a new stake in shares of Mercantile Bank in the 4th quarter worth about $211,000. EntryPoint Capital LLC purchased a new stake in shares of Mercantile Bank in the 1st quarter worth about $223,000. Finally, EP Wealth Advisors LLC lifted its position in Mercantile Bank by 14.4% during the 1st quarter. EP Wealth Advisors LLC now owns 5,151 shares of the financial services provider's stock valued at $224,000 after acquiring an additional 650 shares during the period. 58.63% of the stock is owned by hedge funds and other institutional investors.

Mercantile Bank Stock Performance

Shares of MBWM stock traded down $1.29 during trading hours on Friday, reaching $47.00. The company had a trading volume of 157,585 shares, compared to its average volume of 48,196. The business has a fifty day moving average price of $47.53 and a 200-day moving average price of $45.23. The firm has a market cap of $763.75 million, a PE ratio of 9.33 and a beta of 0.95. Mercantile Bank Corporation has a one year low of $37.76 and a one year high of $52.98. 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 (NASDAQ:MBWM - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The financial services provider reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.16. The business had revenue of $60.90 million for the quarter, compared to analysts' expectations of $60.02 million. Mercantile Bank had a net margin of 22.11% and a return on equity of 13.52%. Sell-side analysts predict that Mercantile Bank Corporation will post 4.83 earnings per share for the current fiscal year.

Mercantile Bank Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 17th. Shareholders of record on Friday, September 5th were issued 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 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend was Friday, September 5th. Mercantile Bank's payout ratio is presently 30.16%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Raymond James Financial raised shares of Mercantile Bank from a "market perform" rating to an "outperform" rating and set a $55.00 price target for the company in a research report on Thursday, July 24th. Piper Sandler lifted their price target on shares of Mercantile Bank from $47.50 to $56.00 and gave the company a "neutral" rating in a research report on Wednesday, July 23rd. Finally, Keefe, Bruyette & Woods lifted 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. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Mercantile Bank presently has an average rating of "Moderate Buy" and a consensus price target of $55.25.

Mercantile Bank Profile

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.