Mercantile Bank (NASDAQ:MBWM) Reaches New 12-Month High - Should You Buy?

Key Points

• Mercantile Bank shares reached a new 52-week high of $63.41, trading around $62.16. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $62.20.
• The bank beat quarterly estimates, reporting EPS of $1.42 versus $1.35 expected and revenue of $73.2 million versus $70.84 million expected.
• Mercantile Bank declared a quarterly dividend of $0.40 per share, equivalent to $1.60 annually and a 2.6% yield.

Shares of Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) hit a new 52-week high during mid-day trading on Thursday. The stock traded as high as $63.41 and last traded at $62.1550, with a volume of 14,339 shares trading hands. The stock had previously closed at $61.56.

Analyst Ratings Changes

MBWM has been the topic of several research analyst reports. Keefe, Bruyette & Woods raised their price objective on Mercantile Bank from $64.00 to $65.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 21st. Weiss Ratings downgraded Mercantile Bank from a "buy (a-)" rating to a "buy (b+)" rating in a report on Friday, October 23rd. Raymond James Financial started 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 lowered Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price target on the stock. in a research report on Wednesday, July 22nd. Finally, Piper Sandler set a $65.00 price objective on Mercantile Bank in a report on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Mercantile Bank presently has a consensus rating of "Moderate Buy" and an average price target of $62.20.

Mercantile Bank Stock Up 0.7%

The firm's 50 day simple moving average is $59.80 and its 200-day simple moving average is $55.57. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $1.07 billion, a price-to-earnings ratio of 11.03 and a beta of 0.82.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The financial services provider reported $1.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.35 by $0.07. The company had revenue of $73.20 million for the quarter, compared to analysts' expectations of $70.84 million. Mercantile Bank had a return on equity of 13.37% and a net margin of 24.42%. Equities analysts expect that Mercantile Bank Corporation will post 5.75 earnings per share for the current fiscal year.

Mercantile Bank Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 16th. Stockholders of record on Friday, December 4th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, December 4th. Mercantile Bank's payout ratio is currently 28.52%.

Hedge Funds Weigh In On Mercantile Bank

A number of large investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Mercantile Bank in the second quarter valued at approximately $88,105,000. North Star Asset Management Inc. bought a new position in Mercantile Bank in the 2nd quarter valued at approximately $21,672,000. Bank of New York Mellon Corp bought a new position in Mercantile Bank in the 2nd quarter valued at approximately $5,633,000. De Lisle Partners LLP acquired a new stake in Mercantile Bank during the 2nd quarter worth approximately $4,346,000. Finally, Empowered Funds LLC boosted its position in Mercantile Bank by 6.9% during the 1st quarter. Empowered Funds LLC now owns 78,969 shares of the financial services provider's stock worth $3,988,000 after buying an additional 5,091 shares during the period. Institutional investors own 58.63% of the company's stock.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company that operates through its subsidiary, Mercantile Bank. Headquartered in Grand Rapids, Michigan, the bank serves businesses, individuals and organizations primarily across Michigan.

Mercantile Bank offers commercial and retail banking products, including business loans, commercial real estate and construction financing, lines of credit, residential mortgage lending, consumer loans, deposit accounts and cash-management services. Its treasury-management offerings are designed to support businesses with payment processing, liquidity management and related banking needs.

Founded in 1997, Mercantile Bank has developed a community-banking model focused on relationship-based service and local decision-making.

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