Mercantile Bank (NASDAQ:MBWM) Cut to Hold at Zacks Research

Key Points

• Zacks Research has downgraded Mercantile Bank (NASDAQ:MBWM) from a "strong-buy" rating to a "hold" rating as of Monday.
• Despite the downgrade, several analysts have increased their price targets for the stock, with a consensus target price of $55.25 and a general rating of "Moderate Buy."
• The company reported quarterly earnings of $1.39 per share, exceeding expectations and reflecting a strong net margin of 22.11%.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

A number of other analysts also recently issued reports on the stock. Piper Sandler boosted their price objective on shares of Mercantile Bank from $47.50 to $56.00 and gave the company a "neutral" rating in a report on Wednesday, July 23rd. Keefe, Bruyette & Woods boosted their price objective on shares of Mercantile Bank from $53.00 to $56.00 and gave the company an "outperform" rating in a report on Wednesday, July 23rd. Finally, Raymond James Financial raised shares of Mercantile Bank from a "market perform" rating to an "outperform" rating and set a $55.00 price objective for the company in a report on Thursday, July 24th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $55.25.

Mercantile Bank Stock Performance

Shares of MBWM stock opened at $46.27 on Monday. 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 company has a market capitalization of $751.89 million, a price-to-earnings ratio of 9.18 and a beta of 0.95. Mercantile Bank has a 52 week low of $37.76 and a 52 week high of $52.98. The company has a 50-day simple moving average of $47.44 and a 200 day simple moving average of $45.25.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its quarterly earnings data on Tuesday, July 22nd. The financial services provider reported $1.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.23 by $0.16. The firm had revenue of $60.90 million during the quarter, compared to the consensus estimate of $60.02 million. Mercantile Bank had a net margin of 22.11% and a return on equity of 13.52%. On average, sell-side analysts predict that Mercantile Bank will post 4.83 earnings per share for the current year.

Hedge Funds Weigh In On Mercantile Bank

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Virtus Advisers LLC acquired a new position in Mercantile Bank in the 1st quarter valued at approximately $39,000. Ameritas Advisory Services LLC acquired a new position in Mercantile Bank in the 2nd quarter valued at approximately $42,000. Farther Finance Advisors LLC acquired a new position in Mercantile Bank in the 2nd quarter valued at approximately $54,000. Oliver Lagore Vanvalin Investment Group acquired a new position in Mercantile Bank in the 2nd quarter valued at approximately $80,000. Finally, EMC Capital Management increased its position in Mercantile Bank by 76.3% in the 2nd quarter. EMC Capital Management now owns 3,309 shares of the financial services provider's stock valued at $154,000 after acquiring an additional 1,432 shares during the period. 58.63% of the stock is currently owned by institutional investors and hedge funds.

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.

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