Mercantile Bank (NASDAQ:MBWM) Hits New 1-Year High - Time to Buy?

Key Points

• Mercantile Bank (NASDAQ: MBWM) hit a new 52-week high, trading as high as $59.85 and ending near $59.84, up about 2.8% on the day.
• Analysts remain broadly constructive: the stock has a Moderate Buy consensus rating, with four Buy ratings and three Hold ratings, and an average price target of $56.80.
• The bank recently posted better-than-expected earnings, reporting $1.46 EPS versus the $1.33 estimate, while institutional investors have also been adding to positions.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report)'s stock price reached a new 52-week high on Thursday . The stock traded as high as $59.85 and last traded at $59.8350, with a volume of 36638 shares trading hands. The stock had previously closed at $57.79.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on MBWM shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercantile Bank in a research report on Friday, June 12th. Stephens initiated coverage on shares of 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. Piper Sandler boosted their target price on Mercantile Bank from $57.00 to $60.00 and gave the company a "neutral" rating in a research report on Friday, June 26th. Finally, Wall Street Zen upgraded Mercantile Bank to a "hold" rating in a research note on Saturday, March 28th. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $56.80.

Mercantile Bank Trading Up 2.8%

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.93 and a quick ratio of 0.93. The firm has a market cap of $1.03 billion, a PE ratio of 10.67 and a beta of 0.80. The company's 50 day moving average price is $54.11 and its 200 day moving average price is $52.35.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last announced its earnings results on Tuesday, April 21st. The financial services provider reported $1.46 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.13. Mercantile Bank had a net margin of 24.19% and a return on equity of 13.73%. The firm had revenue of $67.59 million for the quarter, compared to the consensus estimate of $67.41 million. As a group, analysts forecast that Mercantile Bank Corporation will post 5.63 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada increased its holdings in Mercantile Bank by 5.6% during the 1st quarter. Royal Bank of Canada now owns 68,824 shares of the financial services provider's stock worth $2,989,000 after purchasing an additional 3,621 shares during the period. AQR Capital Management LLC grew its position in shares of 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 in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Mercantile Bank by 4.3% during 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 buying an additional 382 shares in the last quarter. Empowered Funds LLC increased its stake in shares of Mercantile Bank by 4.1% during the first quarter. Empowered Funds LLC now owns 57,731 shares of the financial services provider's stock worth $2,508,000 after buying an additional 2,255 shares during the period. Finally, Jane Street Group LLC increased its stake in shares of 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 period. 58.63% of the stock is currently owned by hedge funds and other institutional investors.

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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