Mercantile Bank (NASDAQ:MBWM) Reaches New 12-Month High - Here's Why

Key Points

• Mercantile Bank shares reached a new 52-week high, trading as high as $62.42, supported by recent analyst attention and an average consensus target of $62.00.
• The bank exceeded quarterly earnings expectations, reporting $1.53 in EPS versus the $1.32 consensus, while generating $68.76 million in revenue and a 24.75% net margin.
• Mercantile Bank increased its quarterly dividend to $0.40 per share, equivalent to an annualized $1.60 dividend and a 2.6% yield; institutional investors own 58.63% of the stock.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) hit a new 52-week high during mid-day trading on Friday . The stock traded as high as $62.42 and last traded at $61.3230, with a volume of 2761 shares changing hands. The stock had previously closed at $60.33.

Analysts Set New Price Targets

MBWM has been the topic of several research reports. Piper Sandler set a $65.00 price objective on Mercantile Bank in a research report on Wednesday, July 22nd. Raymond James Financial began coverage on Mercantile Bank in a research report on Tuesday, September 1st. They issued an "outperform" rating and a $65.00 target price for the company. 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. Hovde Group downgraded Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 target price on the stock. in a report on Wednesday, July 22nd. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Mercantile Bank in a research report on Wednesday. Three equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $62.00.

Mercantile Bank Price Performance

The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.59. The stock has a market cap of $1.06 billion, a PE ratio of 10.80 and a beta of 0.80. The company's 50 day moving average is $59.67 and its 200-day moving average is $54.89.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $68.76 million during the quarter, compared to analysts' expectations of $68.81 million. As a group, sell-side analysts predict that Mercantile Bank Corporation will post 5.69 earnings per share for the current year.

Mercantile Bank Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Friday, September 4th will be issued a $0.40 dividend. This is an increase from Mercantile Bank's previous quarterly dividend of $0.39. This represents a $1.60 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date of this dividend is Friday, September 4th. Mercantile Bank's dividend payout ratio (DPR) is currently 28.17%.

Institutional Investors Weigh In On Mercantile Bank

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC purchased a new position in shares of Mercantile Bank during the 2nd quarter valued at approximately $443,000. Integrated Wealth Concepts LLC bought a new stake in shares of Mercantile Bank in the second quarter worth $54,000. Arizona State Retirement System increased its stake in shares of Mercantile Bank by 6.8% in the second quarter. Arizona State Retirement System now owns 4,528 shares of the financial services provider's stock worth $260,000 after buying an additional 287 shares during the last quarter. California State Teachers Retirement System raised its holdings in Mercantile Bank by 6,994.3% in the second quarter. California State Teachers Retirement System now owns 1,091,382 shares of the financial services provider's stock valued at $62,667,000 after acquiring an additional 1,075,998 shares in the last quarter. Finally, Old Mission Investment Co LLC acquired a new stake in Mercantile Bank in the second quarter valued at $229,000. 58.63% of the stock is currently owned by hedge funds and other 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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