Mercantile Bank (NASDAQ:MBWM) Shares Pass Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Mercantile Bank shares rose above their 200-day moving average, reaching $62.35 before last trading at $61.33, compared with a 200-day average of $53.55.
• The bank reported quarterly EPS of $1.53, beating the $1.32 analyst consensus, while revenue of $68.76 million was roughly in line with estimates. Analysts maintain a consensus “Hold” rating with an average price target of $60.40.
• Mercantile Bank increased its quarterly dividend from $0.39 to $0.40 per share, representing an annualized dividend of $1.60 and a 2.6% yield; institutional investors own 58.63% of the stock.

Shares of Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $53.55 and traded as high as $62.35. Mercantile Bank shares last traded at $61.33, with a volume of 192,504 shares trading hands.

Analyst Ratings Changes

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

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 0.59. The stock has a market cap of $1.06 billion, a price-to-earnings ratio of 10.80 and a beta of 0.79. The company has a 50 day simple moving average of $56.61 and a 200 day simple moving average of $53.55.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.53 earnings per share for the quarter, beating analysts' consensus estimates of $1.32 by $0.21. The company had revenue of $68.76 million for the quarter, compared to the consensus estimate of $68.81 million. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. As a group, equities research analysts forecast that Mercantile Bank Corporation will post 5.7 EPS for the current year.

Mercantile Bank Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Friday, September 4th will be paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, September 4th. This is a boost from Mercantile Bank's previous quarterly dividend of $0.39. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.6%. Mercantile Bank's payout ratio is presently 27.46%.

Institutional Investors Weigh In On Mercantile Bank

Hedge funds have recently modified their holdings of the company. MML Investors Services LLC raised its position in shares of Mercantile Bank by 4.2% in the 4th quarter. MML Investors Services LLC now owns 4,658 shares of the financial services provider's stock worth $224,000 after acquiring an additional 186 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Mercantile Bank by 0.9% during the 4th 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 valued at $1,133,000 after acquiring an additional 208 shares during the period. Natixis Advisors LLC grew its holdings in 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 period. DGS Capital Management LLC increased its stake in 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 valued at $236,000 after purchasing an additional 299 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in shares of Mercantile Bank by 3.8% during the fourth quarter. Russell Investments Group Ltd. now owns 8,149 shares of the financial services provider's stock valued at $392,000 after purchasing an additional 300 shares during the period. Institutional investors and hedge funds own 58.63% of the company's stock.

Mercantile Bank Company Profile

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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