Mercantile Bank Corporation (NASDAQ:MBWM) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Mercantile Bank Corporation has received an average rating of "Moderate Buy" from analysts, with six firms covering the stock and a 12-month price target of $55.25.
• The company recently declared a quarterly dividend of $0.38 per share, reflecting a 3.4% yield and an increase from the previous quarter's dividend.
• Recent trading shows Mercantile Bank's stock up 0.5% to $44.89, with a market cap of $729.46 million and a P/E ratio of 8.91.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the six research firms that are currently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $55.25.

Several analysts have weighed in on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercantile Bank in a research note on Saturday, September 27th. Piper Sandler boosted their price target on Mercantile Bank from $47.50 to $56.00 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. Raymond James Financial upgraded 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 boosted their price target on Mercantile Bank from $53.00 to $56.00 and gave the company an "outperform" rating in a research note on Wednesday, July 23rd. Finally, Zacks Research downgraded Mercantile Bank from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 22nd.

Mercantile Bank Stock Up 0.5%

MBWM stock traded up $0.24 on Friday, hitting $44.89. 49,675 shares of the company's stock were exchanged, compared to its average volume of 67,102. Mercantile Bank has a 12-month low of $37.76 and a 12-month high of $52.98. The firm has a 50 day moving average price of $47.01 and a two-hundred day moving average price of $45.30. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.98 and a current ratio of 0.98. The stock has a market cap of $729.46 million, a P/E ratio of 8.91 and a beta of 0.87.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last announced its 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. Mercantile Bank had a return on equity of 13.52% and a net margin of 22.11%.The firm had revenue of $60.90 million for the quarter, compared to the consensus estimate of $60.02 million. As a group, equities research analysts expect that Mercantile Bank will post 4.83 EPS 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 paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 3.4%. The ex-dividend date was Friday, September 5th. This is a boost from Mercantile Bank's previous quarterly dividend of $0.37. Mercantile Bank's dividend payout ratio (DPR) is presently 30.16%.

Institutional Trading of Mercantile Bank

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Mercantile Bank by 16.9% in the first quarter. Vanguard Group Inc. now owns 1,017,076 shares of the financial services provider's stock worth $44,182,000 after buying an additional 147,299 shares during the last quarter. American Century Companies Inc. raised its holdings in Mercantile Bank by 6.1% in the 2nd quarter. American Century Companies Inc. now owns 452,827 shares of the financial services provider's stock worth $21,016,000 after purchasing an additional 26,202 shares during the period. Geode Capital Management LLC raised its holdings in Mercantile Bank by 4.5% in the 2nd quarter. Geode Capital Management LLC now owns 405,863 shares of the financial services provider's stock worth $18,839,000 after purchasing an additional 17,580 shares during the period. LSV Asset Management raised its holdings in Mercantile Bank by 12.1% in the 1st quarter. LSV Asset Management now owns 321,486 shares of the financial services provider's stock worth $13,965,000 after purchasing an additional 34,776 shares during the period. Finally, JPMorgan Chase & Co. raised its holdings in Mercantile Bank by 73.1% in the 2nd quarter. JPMorgan Chase & Co. now owns 155,904 shares of the financial services provider's stock worth $7,236,000 after purchasing an additional 65,823 shares during the period. Hedge funds and other institutional investors own 58.63% of the company's stock.

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.

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