Mercantile Bank Co. (NASDAQ:MBWM) Announces Quarterly Dividend of $0.36

Mercantile Bank Co. (NASDAQ:MBWM) declared a quarterly dividend on Thursday, July 11th, Zacks reports. Shareholders of record on Friday, September 6th will be paid a dividend of 0.36 per share by the financial services provider on Wednesday, September 18th. This represents a $1.44 dividend on an annualized basis and a yield of 3.25%. The ex-dividend date of this dividend is Friday, September 6th. This is a boost from Mercantile Bank’s previous quarterly dividend of $0.35.

Mercantile Bank has raised its dividend by an average of 6.2% per year over the last three years and has raised its dividend annually for the last 13 consecutive years. Mercantile Bank has a dividend payout ratio of 32.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Mercantile Bank to earn $4.45 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 32.4%.

Mercantile Bank Price Performance

MBWM stock opened at $44.37 on Thursday. The firm has a market cap of $715.29 million, a P/E ratio of 8.60 and a beta of 0.96. The firm’s fifty day moving average is $44.13 and its 200 day moving average is $39.66. Mercantile Bank has a 52 week low of $30.12 and a 52 week high of $51.21. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.02 and a current ratio of 1.03.

Mercantile Bank (NASDAQ:MBWM) last posted its quarterly earnings results on Tuesday, July 16th. The financial services provider reported $1.17 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.17. The business had revenue of $88.56 million during the quarter, compared to analyst estimates of $56.23 million. Mercantile Bank had a net margin of 23.99% and a return on equity of 15.52%. During the same period in the prior year, the business posted $1.27 earnings per share. Research analysts predict that Mercantile Bank will post 4.81 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on MBWM shares. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $51.00 price target (up from $47.00) on shares of Mercantile Bank in a research note on Wednesday, July 17th. Janney Montgomery Scott downgraded shares of Mercantile Bank from a “buy” rating to a “neutral” rating in a research note on Wednesday, May 8th. Finally, Piper Sandler increased their price target on shares of Mercantile Bank from $42.00 to $53.00 and gave the company a “neutral” rating in a research report on Wednesday, July 17th. Four research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $52.00.

Insider Buying and Selling at Mercantile Bank

In other news, Director Michael H. Price sold 5,000 shares of Mercantile Bank stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $45.57, for a total value of $227,850.00. Following the sale, the director now directly owns 21,556 shares in the company, valued at approximately $982,306.92. The sale was disclosed in a filing with the SEC, which is available through this link. In related news, Director Robert B. Kaminski sold 3,000 shares of the business’s stock in a transaction dated Friday, July 19th. The shares were sold at an average price of $48.73, for a total transaction of $146,190.00. Following the transaction, the director now owns 31,610 shares in the company, valued at $1,540,355.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Michael H. Price sold 5,000 shares of the stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $45.57, for a total transaction of $227,850.00. Following the completion of the transaction, the director now directly owns 21,556 shares of the company’s stock, valued at $982,306.92. The disclosure for this sale can be found here. Insiders sold 10,500 shares of company stock valued at $490,933 in the last 90 days. Insiders own 3.08% of the company’s stock.

Mercantile Bank Company Profile

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit.