Mercantile Bank (NASDAQ:MBWM) Stock Price Breaks Above 200-Day Moving Average - Here's Why

Key Points

• Mercantile Bank shares broke above their 200-day moving average, reaching $58.19 and last trading at $57.78, compared with the $56.10 average.
• Analyst sentiment is generally positive, with a consensus rating of “Moderate Buy” and an average price target of $62.00; individual targets range from $62 to $65.
• The bank reported quarterly EPS of $1.53, exceeding estimates by $0.21, and raised its quarterly dividend to $0.40, representing a 2.8% annualized yield.

Mercantile Bank Corporation (NASDAQ:MBWM - Get Free Report) shares crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $56.10 and traded as high as $58.19. Mercantile Bank shares last traded at $57.78, with a volume of 132,764 shares.

Analysts Set New Price Targets

Several analysts have recently weighed in on MBWM shares. Keefe, Bruyette & Woods boosted their target price on Mercantile Bank from $60.00 to $64.00 and gave the company an "outperform" rating in a report on Wednesday, July 22nd. Hovde Group downgraded Mercantile Bank from an "outperform" rating to a "market perform" rating and set a $62.00 price target on the stock. in a research note on Wednesday, July 22nd. Raymond James Financial began coverage on Mercantile Bank in a research report on Tuesday, September 1st. They set an "outperform" rating and a $65.00 price target on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Mercantile Bank in a research note on Wednesday, September 9th. 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 company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $62.00.

Mercantile Bank Stock Down 0.7%

The company has a debt-to-equity ratio of 0.59, a current ratio of 0.93 and a quick ratio of 0.93. The firm's 50 day moving average price is $60.23 and its two-hundred day moving average price is $56.10. The firm has a market cap of $999.02 million, a price-to-earnings ratio of 10.17 and a beta of 0.83.

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, beating the consensus estimate 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 analysts' expectations of $68.81 million. As a group, sell-side analysts forecast that Mercantile Bank Corporation will post 5.69 earnings per share for the current fiscal year.

Mercantile Bank Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Friday, September 4th were issued a $0.40 dividend. 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. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.8%. Mercantile Bank's dividend payout ratio is presently 28.17%.

Institutional Investors Weigh In On Mercantile Bank

Several hedge funds have recently modified their holdings of the stock. De Lisle Partners LLP purchased a new position in Mercantile Bank during the 2nd quarter worth $4,346,000. Man Group plc purchased a new stake in shares of Mercantile Bank in the second quarter valued at about $1,144,000. North Star Asset Management Inc. purchased a new stake in shares of Mercantile Bank in the second quarter valued at about $21,672,000. Focus Partners Advisor Solutions LLC acquired a new position in shares of Mercantile Bank during the second quarter worth about $1,305,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Mercantile Bank during the second quarter worth about $5,633,000. 58.63% of the stock is owned by institutional investors and hedge funds.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company headquartered in Grand Rapids, Michigan. Through its subsidiary, Mercantile Bank, the company provides commercial and retail banking services to businesses, professionals and individuals. The bank primarily serves communities across Michigan, with a focus on relationship-based banking and locally oriented financial services.

Mercantile Bank offers a range of deposit products, including checking, savings, money market and certificate of deposit accounts.

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