Mercantile Bank (NASDAQ:MBWM) Share Price Crosses Above 200-Day Moving Average - What's Next?

Key Points

• Mercantile Bank's share price crossed above its 200-day moving average of $49.41, trading as high as $52.35 and last at $51.97 on a volume of 82,273 shares.
• Wall Street consensus is a Moderate Buy (four Buy, three Hold) with an average price target of $56.20 and several firms issuing targets near $57.
• The company reported an earnings beat ($1.46 vs. $1.33 expected) with a net margin of 24.19% and ROE of 14.06%, and it pays a $0.39 quarterly dividend (3.0% yield, 28% payout ratio).

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report)'s share price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $49.41 and traded as high as $52.35. Mercantile Bank shares last traded at $51.97, with a volume of 82,273 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on MBWM shares. Keefe, Bruyette & Woods increased their price target on shares of Mercantile Bank from $56.00 to $57.00 and gave the stock an "outperform" rating in a report on Wednesday, January 21st. Raymond James Financial set a $57.00 price target on shares of Mercantile Bank in a report on Wednesday, January 21st. Stephens started coverage on shares of Mercantile Bank in a report on Wednesday, March 25th. They issued an "equal weight" rating and a $54.00 price target on the stock. Wall Street Zen raised shares of Mercantile Bank to a "hold" rating in a report on Saturday, March 28th. Finally, Piper Sandler set a $57.00 price target on shares of Mercantile Bank in a report on Wednesday, January 21st. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $56.20.

Mercantile Bank Stock Performance

The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.64. The company's 50-day moving average is $51.52 and its two-hundred day moving average is $49.41. The company has a market capitalization of $897.52 million, a P/E ratio of 9.33 and a beta of 0.85.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its quarterly earnings data 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. The company had revenue of $67.59 million for the quarter, compared to analysts' expectations of $67.41 million. Mercantile Bank had a net margin of 24.19% and a return on equity of 14.06%. Equities analysts anticipate that Mercantile Bank Corporation will post 5.63 earnings per share for the current fiscal year.

Mercantile Bank Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Friday, June 5th will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 3.0%. The ex-dividend date is Friday, June 5th. Mercantile Bank's dividend payout ratio is 28.01%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. MML Investors Services LLC increased its position in shares of Mercantile Bank by 4.2% in the fourth quarter. MML Investors Services LLC now owns 4,658 shares of the financial services provider's stock worth $224,000 after purchasing an additional 186 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Mercantile Bank by 0.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 23,548 shares of the financial services provider's stock worth $1,133,000 after purchasing an additional 208 shares during the last quarter. Natixis Advisors LLC increased its position in shares of Mercantile Bank by 2.4% in the fourth quarter. Natixis Advisors LLC now owns 10,329 shares of the financial services provider's stock worth $497,000 after purchasing an additional 246 shares during the last quarter. Wedge Capital Management L L P NC increased its position in shares of Mercantile Bank by 1.4% in the fourth quarter. Wedge Capital Management L L P NC now owns 17,954 shares of the financial services provider's stock worth $864,000 after purchasing an additional 256 shares during the last quarter. Finally, DGS Capital Management LLC increased its position in shares of Mercantile Bank by 6.8% in the first quarter. DGS Capital Management LLC now owns 4,676 shares of the financial services provider's stock worth $236,000 after purchasing an additional 299 shares during the last quarter. 58.63% of the stock is currently owned by 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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