Hotchkis & Wiley Capital Management LLC Has $5.70 Million Position in Mercantile Bank Corporation $MBWM

Key Points

• Hotchkis & Wiley Capital Management LLC increased its stake in Mercantile Bank Corporation by 72.7% in Q1, now holding 131,310 shares valued at approximately $5.70 million.
• Mercantile Bank has announced a quarterly dividend of $0.38 per share, reflecting a yield of 3.1%, up from the previous dividend of $0.37.
• Analysts are optimistic about Mercantile Bank's growth, with an average price target of $55.25 and several firms upgrading their ratings on the stock.

Hotchkis & Wiley Capital Management LLC grew its stake in Mercantile Bank Corporation (NASDAQ:MBWM - Free Report) by 72.7% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 131,310 shares of the financial services provider's stock after purchasing an additional 55,290 shares during the period. Hotchkis & Wiley Capital Management LLC owned about 0.81% of Mercantile Bank worth $5,704,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in MBWM. Point72 Asia Singapore Pte. Ltd. acquired a new stake in shares of Mercantile Bank in the 4th quarter valued at approximately $35,000. Point72 Asset Management L.P. acquired a new stake in shares of Mercantile Bank in the 4th quarter valued at approximately $102,000. EP Wealth Advisors LLC acquired a new stake in shares of Mercantile Bank in the 4th quarter valued at approximately $200,000. Squarepoint Ops LLC acquired a new stake in shares of Mercantile Bank in the 4th quarter valued at approximately $211,000. Finally, Cubist Systematic Strategies LLC acquired a new stake in shares of Mercantile Bank in the 4th quarter valued at approximately $217,000. 58.63% of the stock is currently owned by institutional investors and hedge funds.

Mercantile Bank Stock Down 0.7%

Mercantile Bank stock opened at $49.14 on Tuesday. 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 52-week low of $37.76 and a 52-week high of $52.98. The firm has a 50 day moving average price of $46.95 and a two-hundred day moving average price of $45.20. The firm has a market cap of $798.53 million, a price-to-earnings ratio of 9.75 and a beta of 0.92.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.16. The company had revenue of $60.90 million during 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%. Equities analysts predict that Mercantile Bank Corporation will post 4.83 EPS for the current year.

Mercantile Bank Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Friday, September 5th will be issued a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, September 5th. This represents a $1.52 dividend on an annualized basis and a yield of 3.1%. This is a positive change from Mercantile Bank's previous quarterly dividend of $0.37. Mercantile Bank's payout ratio is presently 29.37%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on MBWM. Raymond James Financial upgraded shares of Mercantile Bank from a "market perform" rating to an "outperform" rating and set a $55.00 price target on the stock in a research note on Thursday, July 24th. Keefe, Bruyette & Woods lifted their target price on shares of Mercantile Bank from $53.00 to $56.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 23rd. Finally, Piper Sandler lifted their target price on shares of Mercantile Bank from $47.50 to $56.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Mercantile Bank currently 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.

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