Mercantile Bank Corporation (NASDAQ:MBWM) Receives $55.25 Average Price Target from Brokerages

Mercantile Bank Corporation (NASDAQ:MBWM) has been given an average recommendation of “Moderate Buy” by the six brokerages that are covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $55.25.

Several equities analysts have recently issued reports on MBWM shares. Piper Sandler boosted their price target on shares of Mercantile Bank from $47.50 to $56.00 and gave the company a “neutral” rating in a report on Wednesday, July 23rd. Zacks Research downgraded shares of Mercantile Bank from a “strong-buy” rating to a “hold” rating in a report on Monday, September 22nd. Weiss Ratings reissued a “buy (b)” rating on shares of Mercantile Bank in a report on Saturday, September 27th. Keefe, Bruyette & Woods boosted their price target on shares of Mercantile Bank from $53.00 to $56.00 and gave the company an “outperform” rating in a report on Wednesday, July 23rd. Finally, Raymond James Financial raised shares of Mercantile Bank from a “market perform” rating to an “outperform” rating and set a $55.00 price target for the company in a report on Thursday, July 24th.

Mercantile Bank Stock Down 0.9%

MBWM stock opened at $45.34 on Friday. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.98 and a quick ratio of 0.98. Mercantile Bank has a 1-year low of $37.76 and a 1-year high of $52.98. The firm has a fifty day moving average price of $46.87 and a two-hundred day moving average price of $45.32. The firm has a market cap of $736.78 million, a price-to-earnings ratio of 9.00 and a beta of 0.87.

Mercantile Bank (NASDAQ:MBWM) last released its earnings results on Tuesday, July 22nd. The financial services provider reported $1.39 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.16. Mercantile Bank had a net margin of 22.11% and a return on equity of 13.52%. The firm had revenue of $60.90 million during the quarter, compared to analyst estimates of $60.02 million. Research analysts predict that Mercantile Bank will post 4.83 EPS for the current year.

Mercantile Bank Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 17th. Stockholders of record on Friday, September 5th were issued a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 3.4%. This is a positive change from Mercantile Bank’s previous quarterly dividend of $0.37. The ex-dividend date of this dividend was Friday, September 5th. Mercantile Bank’s dividend payout ratio is presently 30.16%.

Hedge Funds Weigh In On Mercantile Bank

Several hedge funds and other institutional investors have recently modified their holdings of the company. Dynamic Technology Lab Private Ltd acquired a new stake in Mercantile Bank in the first quarter worth about $460,000. Cubist Systematic Strategies LLC lifted its holdings in Mercantile Bank by 184.5% in the first quarter. Cubist Systematic Strategies LLC now owns 13,894 shares of the financial services provider’s stock worth $604,000 after purchasing an additional 9,010 shares during the period. Vanguard Group Inc. lifted its holdings in Mercantile Bank by 16.9% in the first quarter. Vanguard Group Inc. now owns 1,017,076 shares of the financial services provider’s stock worth $44,182,000 after purchasing an additional 147,299 shares during the period. Strs Ohio acquired a new stake in Mercantile Bank in the first quarter worth about $560,000. Finally, Hotchkis & Wiley Capital Management LLC lifted its holdings in Mercantile Bank by 72.7% in the first quarter. Hotchkis & Wiley Capital Management LLC now owns 131,310 shares of the financial services provider’s stock worth $5,704,000 after purchasing an additional 55,290 shares during the period. Institutional investors and hedge funds own 58.63% of the company’s stock.

About Mercantile Bank

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.