Mercantile Bank (NASDAQ:MBWM) Hits New 1-Year High - Still a Buy?

Key Points

• Mercantile Bank shares reached a new 52-week high of $62.95 before trading at $60.55, giving the company a market capitalization of approximately $1.05 billion.
• Analyst sentiment is mixed: three analysts rate the stock a Buy and four rate it a Hold, producing a consensus “Hold” rating and an average price target of $62.00.
• The bank exceeded quarterly earnings expectations, reporting $1.53 in EPS versus the $1.32 consensus estimate, and raised its quarterly dividend to $0.40 per share, representing a 2.6% annual yield.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report)'s share price hit a new 52-week high on Thursday . The company traded as high as $62.95 and last traded at $60.55, with a volume of 202294 shares. The stock had previously closed at $61.77.

Wall Street Analyst Weigh In

Several analysts recently issued reports on MBWM shares. Raymond James Financial assumed coverage on Mercantile Bank in a report on Tuesday, September 1st. They issued an "outperform" rating and a $65.00 price target for the company. Hovde Group cut Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price objective on the stock. in a research note on Wednesday, July 22nd. Piper Sandler set a $65.00 target price on Mercantile Bank in a research report on Wednesday, July 22nd. Keefe, Bruyette & Woods increased their target price 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 reiterated a "buy (b)" rating on shares of Mercantile Bank in a research note on Wednesday, September 9th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Mercantile Bank presently has a consensus rating of "Hold" and an average price target of $62.00.

Mercantile Bank Trading Down 2.0%

The firm has a market capitalization of $1.05 billion, a price-to-earnings ratio of 10.66 and a beta of 0.80. The business's 50-day moving average price is $59.99 and its 200 day moving average price is $55.13. The company has a debt-to-equity ratio of 0.59, a current ratio of 0.93 and a quick ratio of 0.93.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last released 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. Mercantile Bank had a net margin of 24.75% and a return on equity of 13.66%. The business had revenue of $68.76 million during the quarter, compared to analyst estimates of $68.81 million. On average, equities analysts forecast that Mercantile Bank Corporation will post 5.69 earnings per share for the current fiscal year.

Mercantile Bank Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Friday, September 4th were given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend was Friday, September 4th. This is an increase from Mercantile Bank's previous quarterly dividend of $0.39. Mercantile Bank's dividend payout ratio is currently 28.17%.

Institutional Trading of Mercantile Bank

A number of hedge funds and other institutional investors have recently modified their holdings of MBWM. Sequoia Financial Advisors LLC purchased a new position in Mercantile Bank in the second quarter valued at about $443,000. Integrated Wealth Concepts LLC acquired a new stake in Mercantile Bank during the 2nd quarter valued at approximately $54,000. Arizona State Retirement System increased its holdings in Mercantile Bank by 6.8% during the 2nd quarter. Arizona State Retirement System now owns 4,528 shares of the financial services provider's stock worth $260,000 after purchasing an additional 287 shares during the last quarter. Old Mission Investment Co LLC purchased a new stake in Mercantile Bank during the 2nd quarter worth approximately $229,000. Finally, Susquehanna Fundamental Investments LLC acquired a new position in shares of Mercantile Bank in the 2nd quarter valued at approximately $580,000. 58.63% of the stock is owned by hedge funds and other institutional investors.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company headquartered in Grand Rapids, Michigan. Through its principal subsidiary, Mercantile Bank, the company provides banking and financial services to businesses, individuals and organizations.

The bank's offerings include commercial and industrial lending, commercial real estate financing, construction loans, residential mortgage loans and consumer credit. It also provides deposit accounts, treasury and cash-management services, online and mobile banking, and other financial services designed to support business and personal banking needs.

Founded in 1997, Mercantile Bank has developed a community-oriented banking model focused primarily on commercial relationships and local markets.

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