Mercantile Bank Corporation (NASDAQ:MBWM) Declares Quarterly Dividend of $0.38

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) declared a quarterly dividend on Wednesday, July 23rd, Wall Street Journal reports. Investors of record on Friday, September 5th will be paid a dividend of 0.38 per share by the financial services provider on Wednesday, September 17th. This represents a $1.52 dividend on an annualized basis and a yield of 3.16%. The ex-dividend date is Friday, September 5th. This is a 2.7% increase from Mercantile Bank's previous quarterly dividend of $0.37.

Mercantile Bank has a dividend payout ratio of 29.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Mercantile Bank to earn $4.98 per share next year, which means the company should continue to be able to cover its $1.48 annual dividend with an expected future payout ratio of 29.7%.

Mercantile Bank Trading Up 0.2%

Mercantile Bank stock traded up $0.08 during midday trading on Friday, reaching $48.06. The stock had a trading volume of 15,491 shares, compared to its average volume of 70,283. Mercantile Bank has a twelve month low of $37.76 and a twelve month high of $52.98. The stock has a market capitalization of $780.91 million, a PE ratio of 9.55 and a beta of 0.89. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.99 and a current ratio of 0.99. The stock's 50-day simple moving average is $46.07 and its 200 day simple moving average is $45.21.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last issued its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $1.39 EPS for the quarter, topping analysts' consensus estimates of $1.23 by $0.16. The company had revenue of $60.90 million for the quarter, compared to analysts' expectations of $60.02 million. Mercantile Bank had a return on equity of 13.75% and a net margin of 22.11%. Analysts expect that Mercantile Bank will post 4.83 EPS for the current year.

Hedge Funds Weigh In On Mercantile Bank

A number of hedge funds have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Mercantile Bank by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,360 shares of the financial services provider's stock worth $407,000 after acquiring an additional 382 shares during the last quarter. Empowered Funds LLC increased its stake in shares of Mercantile Bank by 4.1% in the first quarter. Empowered Funds LLC now owns 57,731 shares of the financial services provider's stock worth $2,508,000 after acquiring an additional 2,255 shares during the last quarter. Jane Street Group LLC increased its position in Mercantile Bank by 21.0% during the first quarter. Jane Street Group LLC now owns 15,952 shares of the financial services provider's stock worth $693,000 after buying an additional 2,772 shares during the last quarter. Royal Bank of Canada increased its position in Mercantile Bank by 5.6% during the first quarter. Royal Bank of Canada now owns 68,824 shares of the financial services provider's stock worth $2,989,000 after buying an additional 3,621 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in Mercantile Bank by 21.2% during the first quarter. AQR Capital Management LLC now owns 92,045 shares of the financial services provider's stock worth $3,998,000 after buying an additional 16,092 shares during the last quarter. 58.63% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on MBWM. Raymond James Financial raised Mercantile Bank from a "market perform" rating to an "outperform" rating and set a $55.00 target price on the stock in a research report on Thursday. Keefe, Bruyette & Woods boosted their price objective on Mercantile Bank from $53.00 to $56.00 and gave the company an "outperform" rating in a report on Wednesday. Finally, Piper Sandler upped their target price on Mercantile Bank from $47.50 to $56.00 and gave the company a "neutral" rating in a report on Wednesday.

Mercantile Bank Company 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.