Mercantile Bank Corporation (NASDAQ:MBWM) Short Interest Update

Key Points

• Mercantile Bank experienced a 39.4% increase in short interest in March to 354,221 shares (about 2.1% of shares short) with a days-to-cover of 2.6.
• Analysts maintain a Moderate Buy consensus with an average target of $56.20, and multiple firms issuing Buy/Outperform ratings in the $54–$57 range.
• The company increased its quarterly dividend to $0.39 (annualized $1.56), reflecting a 2.9% yield and roughly a 28.6% payout ratio.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) was the recipient of a large increase in short interest in the month of March. As of March 31st, there was short interest totaling 354,221 shares, an increase of 39.4% from the March 15th total of 254,105 shares. Currently, 2.1% of the shares of the company are short sold. Based on an average daily volume of 134,729 shares, the days-to-cover ratio is currently 2.6 days.

Wall Street Analyst Weigh In

A number of analysts have weighed in on MBWM shares. Piper Sandler set a $57.00 price objective on Mercantile Bank in a research report on Wednesday, January 21st. Stephens started coverage on Mercantile Bank in a research report on Wednesday, March 25th. They set an "equal weight" rating and a $54.00 price objective for the company. Hovde Group increased their price objective on Mercantile Bank from $53.00 to $56.00 and gave the stock an "outperform" rating in a research report on Thursday, December 18th. Raymond James Financial set a $57.00 price objective on Mercantile Bank in a research report on Wednesday, January 21st. Finally, Keefe, Bruyette & Woods increased their price objective on Mercantile Bank from $56.00 to $57.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 21st. Four analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Mercantile Bank currently has a consensus rating of "Moderate Buy" and an average target price of $56.20.

Institutional Trading of Mercantile Bank

Several hedge funds have recently modified their holdings of the business. Hsbc Holdings PLC increased its stake in Mercantile Bank by 173.0% in the 4th quarter. Hsbc Holdings PLC now owns 17,959 shares of the financial services provider's stock valued at $861,000 after purchasing an additional 11,381 shares in the last quarter. DGS Capital Management LLC purchased a new position in Mercantile Bank in the 4th quarter valued at approximately $211,000. EP Wealth Advisors LLC purchased a new position in Mercantile Bank in the 4th quarter valued at approximately $267,000. Mackenzie Financial Corp purchased a new position in Mercantile Bank in the 4th quarter valued at approximately $307,000. Finally, Empowered Funds LLC increased its stake in Mercantile Bank by 12.2% in the 4th quarter. Empowered Funds LLC now owns 73,878 shares of the financial services provider's stock valued at $3,554,000 after purchasing an additional 8,014 shares in the last quarter. 58.63% of the stock is owned by institutional investors and hedge funds.

Mercantile Bank Stock Performance

Mercantile Bank stock traded down $0.50 during mid-day trading on Wednesday, reaching $53.03. 77,693 shares of the company were exchanged, compared to its average volume of 128,743. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.93 and a current ratio of 0.93. The firm's 50-day simple moving average is $51.97 and its two-hundred day simple moving average is $48.96. The firm has a market cap of $915.83 million, a PE ratio of 9.71 and a beta of 0.85. Mercantile Bank has a twelve month low of $38.66 and a twelve month high of $55.77.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its quarterly earnings results on Tuesday, January 20th. The financial services provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.37 by $0.03. The business had revenue of $62.07 million during the quarter, compared to analysts' expectations of $62.25 million. Mercantile Bank had a return on equity of 13.54% and a net margin of 23.87%. Equities analysts predict that Mercantile Bank will post 4.83 earnings per share for the current fiscal year.

Mercantile Bank Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Friday, March 6th were issued a $0.39 dividend. The ex-dividend date of this dividend was Friday, March 6th. This represents a $1.56 annualized dividend and a dividend yield of 2.9%. This is an increase from Mercantile Bank's previous quarterly dividend of $0.38. Mercantile Bank's payout ratio is 28.57%.

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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