Mercantile Bank (NASDAQ:MBWM) Sets New 52-Week High - What's Next?

Key Points

• Mercantile Bank shares reached a new 52-week high of $60.45, rising 3.2% during Tuesday trading. The stock has a market capitalization of approximately $1.04 billion.
• The bank reported quarterly EPS of $1.53, beating analyst estimates of $1.32, while revenue of $68.76 million was roughly in line with expectations. Analysts have a consensus “Hold” rating and an average price target of $60.40.
• Mercantile Bank increased its quarterly dividend to $0.40 per share, equal to $1.60 annually and a 2.6% yield. Institutional investors own 58.63% of the company’s outstanding shares.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $60.45 and last traded at $60.2860, with a volume of 59385 shares trading hands. The stock had previously closed at $58.62.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercantile Bank in a report on Friday, June 12th. Piper Sandler set a $65.00 price objective on shares of Mercantile Bank in a report on Wednesday, July 22nd. Hovde Group cut shares of Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price objective for the company. in a research report on Wednesday, July 22nd. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Mercantile Bank from $60.00 to $64.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $60.40.

Mercantile Bank Stock Up 3.2%

The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 10.66 and a beta of 0.80. 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 business has a fifty day moving average of $55.25 and a 200 day moving average of $52.91.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its earnings results on Tuesday, July 21st. The financial services provider reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.21. Mercantile Bank had a return on equity of 13.90% and a net margin of 24.75%.The company had revenue of $68.76 million during the quarter, compared to analysts' expectations of $68.81 million. As a group, equities analysts predict that Mercantile Bank Corporation will post 5.7 earnings per share for the current year.

Mercantile Bank Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Friday, September 4th will be issued a dividend of $0.40 per share. The ex-dividend date is Friday, September 4th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.6%. This is a boost from Mercantile Bank's previous quarterly dividend of $0.39. Mercantile Bank's dividend payout ratio (DPR) is currently 28.17%.

Institutional Trading of Mercantile Bank

Institutional investors and hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC acquired a new position in Mercantile Bank in the fourth quarter valued at about $26,000. Quadrant Capital Group LLC increased its position in shares of Mercantile Bank by 63.8% during the fourth quarter. Quadrant Capital Group LLC now owns 891 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 347 shares during the last quarter. PNC Financial Services Group Inc. increased its position in shares of Mercantile Bank by 29.9% during the first quarter. PNC Financial Services Group Inc. now owns 1,682 shares of the financial services provider's stock valued at $85,000 after acquiring an additional 387 shares during the last quarter. Aquatic Capital Management LLC raised its stake in shares of Mercantile Bank by 94.9% in the 3rd quarter. Aquatic Capital Management LLC now owns 3,235 shares of the financial services provider's stock valued at $146,000 after acquiring an additional 1,575 shares during the period. Finally, Quantbot Technologies LP raised its stake in shares of Mercantile Bank by 251.9% in the 2nd quarter. Quantbot Technologies LP now owns 4,370 shares of the financial services provider's stock valued at $203,000 after acquiring an additional 3,128 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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