Mercantile Bank (NASDAQ:MBWM) Stock Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Mercantile Bank (NASDAQ: MBWM) shares moved above their 200-day moving average on Monday, trading as high as $57.71 and last changing hands at $57.42.
• The company reported better-than-expected quarterly results, with EPS of $1.46 versus the $1.33 estimate and revenue slightly above forecasts. Analysts currently rate the stock a Moderate Buy with a consensus target price of $56.80.
• Mercantile Bank recently paid a quarterly dividend of $0.39, which annualizes to $1.56 per share for a yield of about 2.7%. Institutional investors also appear active in the stock, with hedge funds and other institutions owning 58.63% of shares.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $52.23 and traded as high as $57.71. Mercantile Bank shares last traded at $57.42, with a volume of 93,032 shares changing hands.

Wall Street Analysts Forecast Growth

MBWM has been the subject of a number of research reports. Wall Street Zen raised shares of Mercantile Bank to a "hold" rating in a research note on Saturday, March 28th. Stephens assumed coverage on shares of Mercantile Bank in a research note on Wednesday, March 25th. They issued an "equal weight" rating and a $54.00 price target on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercantile Bank in a report on Friday, June 12th. Finally, Piper Sandler boosted their price objective on Mercantile Bank from $57.00 to $60.00 and gave the stock a "neutral" rating in a research note on Friday, June 26th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $56.80.

Mercantile Bank Stock Up 0.7%

The business has a fifty day simple moving average of $53.90 and a two-hundred day simple moving average of $52.23. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.62. The company has a market cap of $991.64 million, a PE ratio of 10.31 and a beta of 0.80.

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 (EPS) 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 company had revenue of $67.59 million for the quarter, compared to analysts' expectations of $67.41 million. As a group, equities research analysts predict that Mercantile Bank Corporation will post 5.63 earnings per share for the current year.

Mercantile Bank Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Friday, June 5th were paid a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Friday, June 5th. Mercantile Bank's dividend payout ratio (DPR) is currently 28.01%.

Institutional Trading of Mercantile Bank

Several large investors have recently bought and sold shares of MBWM. Kestra Advisory Services LLC acquired a new stake in Mercantile Bank in the 4th quarter valued at about $26,000. Quadrant Capital Group LLC lifted its stake in Mercantile Bank by 63.8% in the 4th quarter. Quadrant Capital Group LLC now owns 891 shares of the financial services provider's stock worth $43,000 after purchasing an additional 347 shares in the last quarter. PNC Financial Services Group Inc. lifted its stake in Mercantile Bank by 29.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 1,682 shares of the financial services provider's stock worth $85,000 after purchasing an additional 387 shares in the last quarter. Aquatic Capital Management LLC boosted its holdings in shares of Mercantile Bank by 94.9% during the 3rd quarter. Aquatic Capital Management LLC now owns 3,235 shares of the financial services provider's stock worth $146,000 after purchasing an additional 1,575 shares during the last quarter. Finally, Quantbot Technologies LP grew its position in shares of Mercantile Bank by 251.9% in the second quarter. Quantbot Technologies LP now owns 4,370 shares of the financial services provider's stock valued at $203,000 after purchasing an additional 3,128 shares in the last quarter. Hedge funds and other institutional investors 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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