Mercantile Bank (NASDAQ:MBWM) Share Price Breaks Above 200-Day Moving Average - What's Next?

Key Points

• Mercantile Bank shares broke above their 200-day moving average, reaching $60.45 and last trading at $60.03 versus the $55.48 average.
• Analysts collectively rate MBWM a “Moderate Buy”, with an average price target of $62.00 and individual targets ranging from $62 to $65. The bank also exceeded quarterly EPS estimates, reporting $1.53 versus the expected $1.32.
• Mercantile Bank raised its quarterly dividend to $0.40 per share, equivalent to a $1.60 annualized payout and a 2.7% yield. Institutional investors own 58.63% of the stock, with major new positions from BlackRock and other firms.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $55.48 and traded as high as $60.45. Mercantile Bank shares last traded at $60.03, with a volume of 91,155 shares traded.

Wall Street Analysts Forecast Growth

MBWM has been the subject of several recent research reports. Weiss Ratings restated a "buy (b)" rating on shares of Mercantile Bank in a report on Wednesday, September 9th. Hovde Group cut Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price target for the company. in a report on Wednesday, July 22nd. Keefe, Bruyette & Woods increased their price objective on Mercantile Bank from $60.00 to $64.00 and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Piper Sandler set a $65.00 price target on shares of Mercantile Bank in a research note on Wednesday, July 22nd. Finally, Raymond James Financial initiated coverage on shares of Mercantile Bank in a research report on Tuesday, September 1st. They issued an "outperform" rating and a $65.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $62.00.

Mercantile Bank Price Performance

The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 10.57 and a beta of 0.80. The company has a 50 day moving average of $60.29 and a 200 day moving average of $55.48. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.59.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last issued its quarterly earnings results on Tuesday, July 21st. The financial services provider reported $1.53 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $68.76 million for the quarter, compared to analyst estimates of $68.81 million. As a group, equities research analysts forecast that Mercantile Bank Corporation will post 5.69 EPS for the current fiscal year.

Mercantile Bank Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Friday, September 4th were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 2.7%. This is a positive change from Mercantile Bank's previous quarterly dividend of $0.39. The ex-dividend date of this dividend was Friday, September 4th. Mercantile Bank's dividend payout ratio (DPR) is currently 28.17%.

Institutional Trading of Mercantile Bank

Several institutional investors have recently made changes to their positions in MBWM. BlackRock Inc. purchased a new stake in shares of Mercantile Bank during the 2nd quarter worth about $88,105,000. North Star Asset Management Inc. purchased a new position in Mercantile Bank in the second quarter valued at approximately $21,672,000. Bank of New York Mellon Corp acquired a new position in Mercantile Bank during the second quarter valued at approximately $5,633,000. De Lisle Partners LLP acquired a new position in Mercantile Bank during the second quarter valued at approximately $4,346,000. Finally, Siena Capital Partners GP LLC grew its stake in Mercantile Bank by 319.8% during the fourth quarter. Siena Capital Partners GP LLC now owns 83,966 shares of the financial services provider's stock worth $4,039,000 after buying an additional 63,966 shares during the period. 58.63% of the stock is owned by hedge funds and other institutional investors.

About Mercantile Bank

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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