Mercantile Bank (NASDAQ:MBWM) Trading 16.2% Higher – Here’s Why

Shares of Mercantile Bank Co. (NASDAQ:MBWM) were up 16.2% during mid-day trading on Wednesday . The stock traded as high as $51.02 and last traded at $51.02. Approximately 22,038 shares traded hands during trading, a decline of 68% from the average daily volume of 68,069 shares. The stock had previously closed at $43.90.

Analysts Set New Price Targets

MBWM has been the subject of a number of research analyst reports. Piper Sandler upped their target price on Mercantile Bank from $42.00 to $53.00 and gave the company a “neutral” rating in a research report on Wednesday, July 17th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $51.00 price objective (up from $47.00) on shares of Mercantile Bank in a report on Wednesday, July 17th.

Mercantile Bank Price Performance

The company has a 50-day moving average of $43.73 and a 200-day moving average of $41.78. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a market cap of $825.72 million, a price-to-earnings ratio of 10.27 and a beta of 0.95.

Mercantile Bank (NASDAQ:MBWM) last released its earnings results on Tuesday, October 15th. The financial services provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.18 by $0.04. Mercantile Bank had a return on equity of 14.59% and a net margin of 22.77%. The business had revenue of $93.08 million for the quarter, compared to analyst estimates of $56.83 million. During the same quarter in the previous year, the company posted $1.30 earnings per share. As a group, equities research analysts predict that Mercantile Bank Co. will post 4.87 earnings per share for the current year.

Mercantile Bank Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Friday, December 6th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.81%. The ex-dividend date of this dividend is Friday, December 6th. Mercantile Bank’s dividend payout ratio (DPR) is presently 28.92%.

Insider Transactions at Mercantile Bank

In related news, Director Michael H. Price sold 5,000 shares of the firm’s stock in a transaction dated Monday, August 26th. The shares were sold at an average price of $45.57, for a total value of $227,850.00. Following the completion of the sale, the director now owns 21,556 shares in the company, valued at $982,306.92. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders have sold a total of 5,500 shares of company stock worth $248,920 over the last ninety days. 3.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Mercantile Bank

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its holdings in Mercantile Bank by 108.7% in the second quarter. AQR Capital Management LLC now owns 174,355 shares of the financial services provider’s stock valued at $7,074,000 after buying an additional 90,802 shares in the last quarter. American Century Companies Inc. increased its stake in Mercantile Bank by 18.2% in the 2nd quarter. American Century Companies Inc. now owns 308,849 shares of the financial services provider’s stock valued at $12,530,000 after purchasing an additional 47,528 shares in the last quarter. LSV Asset Management raised its holdings in Mercantile Bank by 15.4% during the second quarter. LSV Asset Management now owns 260,129 shares of the financial services provider’s stock worth $10,553,000 after purchasing an additional 34,725 shares during the last quarter. Vanguard Group Inc. boosted its position in Mercantile Bank by 2.8% during the first quarter. Vanguard Group Inc. now owns 805,334 shares of the financial services provider’s stock worth $30,997,000 after purchasing an additional 21,616 shares in the last quarter. Finally, Inspire Investing LLC grew its holdings in Mercantile Bank by 218.8% in the second quarter. Inspire Investing LLC now owns 29,820 shares of the financial services provider’s stock valued at $1,210,000 after purchasing an additional 20,465 shares during the last quarter. 58.63% of the stock is owned by institutional investors and hedge funds.

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.