Wellington Management Group LLP Cuts Holdings in Mercantile Bank Corporation $MBWM

Key Points

• Wellington Management cut its Mercantile Bank stake by 8.5% in the second quarter, selling 101,033 shares but retaining 1.09 million shares worth approximately $62.5 million. Institutional investors collectively own 58.63% of MBWM.
• Analyst sentiment is mixed: three analysts rate the stock a Buy and four rate it a Hold, resulting in a consensus Hold rating and a $62 price target. Recent targets range from $62 to $65.
• Mercantile Bank exceeded quarterly earnings expectations, reporting $1.53 in EPS versus the $1.32 consensus estimate, while revenue was approximately $68.76 million. The bank also raised its quarterly dividend to $0.40, implying a 2.6% annual yield.

Wellington Management Group LLP reduced its position in Mercantile Bank Corporation (NASDAQ:MBWM - Free Report) by 8.5% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,087,998 shares of the financial services provider's stock after selling 101,033 shares during the period. Wellington Management Group LLP owned 6.29% of Mercantile Bank worth $62,473,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Mercantile Bank during the 2nd quarter worth approximately $88,105,000. North Star Asset Management Inc. bought a new stake in Mercantile Bank in the second quarter worth $21,672,000. Bank of New York Mellon Corp bought a new stake in Mercantile Bank in the second quarter worth $5,633,000. De Lisle Partners LLP purchased a new stake in Mercantile Bank during the second quarter valued at $4,346,000. Finally, JPMorgan Chase & Co. lifted its position in Mercantile Bank by 73.1% during the second quarter. JPMorgan Chase & Co. now owns 155,904 shares of the financial services provider's stock valued at $7,236,000 after purchasing an additional 65,823 shares during the last quarter. Hedge funds and other institutional investors own 58.63% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on MBWM. Keefe, Bruyette & Woods boosted their target price on shares of Mercantile Bank from $60.00 to $64.00 and gave the stock an "outperform" rating in a report on Wednesday, July 22nd. Weiss Ratings reissued a "buy (b)" rating on shares of Mercantile Bank in a research note on Friday, June 12th. Piper Sandler set a $65.00 price objective on Mercantile Bank in a research report on Wednesday, July 22nd. Raymond James Financial initiated coverage on Mercantile Bank in a report on Tuesday. They issued an "outperform" rating and a $65.00 target price for the company. Finally, Hovde Group downgraded Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 target price on the stock. in a research report on Wednesday, July 22nd. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $62.00.

Mercantile Bank Stock Performance

Mercantile Bank stock opened at $61.00 on Thursday. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.93 and a quick ratio of 0.93. The firm has a market capitalization of $1.05 billion, a P/E ratio of 10.74 and a beta of 0.80. Mercantile Bank Corporation has a 1-year low of $42.75 and a 1-year high of $62.39. The company's 50-day moving average is $59.20 and its 200 day moving average is $54.58.

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

Mercantile Bank Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Friday, September 4th will be given a $0.40 dividend. This is a boost from Mercantile Bank's previous quarterly dividend of $0.39. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.60 annualized dividend and a yield of 2.6%. Mercantile Bank's dividend payout ratio is currently 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.

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