Mercantile Bank (NASDAQ:MBWM) Stock Passes Above 200-Day Moving Average - What's Next?

Key Points

• Mercantile Bank shares rose above their 200-day moving average, trading as high as $61.70 and closing near $61.56, compared with the 200-day average of $53.93.
• Analyst sentiment remains mixed, with three Buy ratings and four Holds; the consensus rating is Hold and the average price target is $60.40.
• The bank exceeded quarterly EPS expectations, reporting $1.53 versus $1.32 anticipated, and raised its quarterly dividend to $0.40 per share, equivalent to a 2.6% yield.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report)'s share price crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $53.93 and traded as high as $61.70. Mercantile Bank shares last traded at $61.56, with a volume of 78,647 shares traded.

Analysts Set New Price Targets

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

Mercantile Bank Stock Up 0.3%

The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.93 and a current ratio of 0.93. The company's 50-day simple moving average is $57.66 and its two-hundred day simple moving average is $53.93. The firm has a market cap of $1.06 billion, a PE ratio of 10.84 and a beta of 0.79.

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

Mercantile Bank Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Friday, September 4th will be given a dividend of $0.40 per share. This is an increase from Mercantile Bank's previous quarterly dividend of $0.39. This represents a $1.60 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, September 4th. Mercantile Bank's dividend payout ratio is presently 28.17%.

Institutional Investors Weigh In On Mercantile Bank

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Mercantile Bank in the 2nd quarter worth about $88,105,000. Vanguard Group Inc. increased its holdings in shares of Mercantile Bank by 2.6% during the fourth quarter. Vanguard Group Inc. now owns 1,066,368 shares of the financial services provider's stock valued at $51,292,000 after acquiring an additional 27,403 shares in the last quarter. Renaissance Technologies LLC raised its position in shares of Mercantile Bank by 1.2% in the 4th quarter. Renaissance Technologies LLC now owns 496,213 shares of the financial services provider's stock worth $23,868,000 after purchasing an additional 5,800 shares during the last quarter. North Star Asset Management Inc. boosted its stake in Mercantile Bank by 5.4% in the 4th quarter. North Star Asset Management Inc. now owns 374,544 shares of the financial services provider's stock worth $18,016,000 after purchasing an additional 19,204 shares in the last quarter. Finally, Wellington Management Group LLP bought a new position in shares of Mercantile Bank in the fourth quarter worth approximately $14,181,000. 58.63% of the stock is owned by hedge funds and other institutional investors.

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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