Stephens Initiates Coverage on Mercantile Bank (NASDAQ:MBWM)

Key Points

• Stephens initiated coverage of Mercantile Bank (NASDAQ:MBWM) with an "equal weight" rating and a $54 price target, implying roughly an 8.28% upside from the prior close.
• Analyst consensus sits at a Moderate Buy with an average target of $56.20 (several firms set targets around $57), reflecting four Buy and three Hold ratings.
• Shares trade near $49.87 with a PE of 9.13 and market cap of about $861M; recent quarter posted $1.40 EPS (beat), a 23.87% net margin and 13.54% ROE, and institutional investors own roughly 58.6% of the stock.

Equities researchers at Stephens initiated coverage on shares of Mercantile Bank (NASDAQ:MBWM - Get Free Report) in a research report issued on Wednesday, Marketbeat reports. The firm set an "equal weight" rating and a $54.00 price target on the financial services provider's stock. Stephens' target price points to a potential upside of 8.28% from the company's previous close.

Several other research firms have also recently issued reports on MBWM. Raymond James Financial set a $57.00 target price on Mercantile Bank in a research note on Wednesday, January 21st. Hovde Group lifted their price objective on Mercantile Bank from $53.00 to $56.00 and gave the stock an "outperform" rating in a research report on Thursday, December 18th. Keefe, Bruyette & Woods boosted their target price on Mercantile Bank from $56.00 to $57.00 and gave the company an "outperform" rating in a research note on Wednesday, January 21st. Piper Sandler set a $57.00 price target on Mercantile Bank in a research note on Wednesday, January 21st. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Mercantile Bank in a report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $56.20.

Mercantile Bank Stock Down 0.8%

Shares of Mercantile Bank stock opened at $49.87 on Wednesday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.93 and a current ratio of 0.93. Mercantile Bank has a 52-week low of $37.76 and a 52-week high of $55.77. The company's 50 day moving average price is $51.96 and its 200-day moving average price is $48.46. The stock has a market capitalization of $861.25 million, a price-to-earnings ratio of 9.13 and a beta of 0.89.

Mercantile Bank (NASDAQ:MBWM - Get Free Report) last posted its quarterly earnings results on Tuesday, January 20th. The financial services provider reported $1.40 EPS for the quarter, beating analysts' consensus estimates of $1.37 by $0.03. The company had revenue of $62.07 million during the quarter, compared to analyst estimates of $62.25 million. Mercantile Bank had a net margin of 23.87% and a return on equity of 13.54%. Equities research analysts forecast that Mercantile Bank will post 4.83 EPS for the current year.

Institutional Investors Weigh In On Mercantile Bank

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in Mercantile Bank by 2.6% in the fourth quarter. Vanguard Group Inc. now owns 1,066,368 shares of the financial services provider's stock worth $51,292,000 after purchasing an additional 27,403 shares during the period. Tributary Capital Management LLC increased its stake in shares of Mercantile Bank by 92.6% in the 3rd quarter. Tributary Capital Management LLC now owns 497,402 shares of the financial services provider's stock worth $22,383,000 after acquiring an additional 239,193 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of Mercantile Bank by 1.2% during the fourth quarter. Renaissance Technologies LLC now owns 496,213 shares of the financial services provider's stock valued at $23,868,000 after purchasing an additional 5,800 shares in the last quarter. American Century Companies Inc. boosted its position in shares of Mercantile Bank by 9.2% in the 3rd quarter. American Century Companies Inc. now owns 494,367 shares of the financial services provider's stock worth $22,247,000 after purchasing an additional 41,540 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in Mercantile Bank by 4.5% during the second quarter. Geode Capital Management LLC now owns 405,863 shares of the financial services provider's stock valued at $18,839,000 after buying an additional 17,580 shares during the last quarter. 58.63% of the stock is currently owned by 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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