Mercantile Bank (NASDAQ:MBWM) Trading Up 4.4% on Strong Earnings

Mercantile Bank Co. (NASDAQ:MBWM)’s share price shot up 4.4% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $45.63 and last traded at $45.31. 19,050 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 69,481 shares. The stock had previously closed at $43.40.

The financial services provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.18 by $0.04. Mercantile Bank had a net margin of 23.99% and a return on equity of 15.52%. The business had revenue of $93.08 million during the quarter, compared to analysts’ expectations of $56.83 million. During the same quarter in the previous year, the company earned $1.30 EPS.

Mercantile Bank Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Investors 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 3.10%. The ex-dividend date of this dividend is Friday, December 6th. Mercantile Bank’s dividend payout ratio (DPR) is currently 27.91%.

Analyst Ratings Changes

Several equities analysts have weighed in on MBWM shares. Piper Sandler lifted their price objective on Mercantile Bank from $42.00 to $53.00 and gave the company a “neutral” rating in a report on Wednesday, July 17th. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $51.00 price target (up previously from $47.00) on shares of Mercantile Bank in a research report on Wednesday, July 17th.

Insider Transactions at Mercantile Bank

In other Mercantile Bank news, Director Michael H. Price sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, August 26th. The shares were 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 in the company, valued at $982,306.92. The trade was 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. In related news, Director Michael H. Price sold 5,000 shares of the firm’s stock in a transaction dated 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 of the company’s stock, valued at $982,306.92. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Robert B. Kaminski sold 3,000 shares of Mercantile Bank stock in a transaction dated Friday, July 19th. The shares were sold at an average price of $48.73, for a total value of $146,190.00. Following the completion of the transaction, the director now owns 31,610 shares in the company, valued at approximately $1,540,355.30. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 10,500 shares of company stock valued at $491,418. Company insiders own 3.08% of the company’s stock.

Hedge Funds Weigh In On Mercantile Bank

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC increased its holdings in shares of Mercantile Bank by 9.2% during the first quarter. Allspring Global Investments Holdings LLC now owns 4,660 shares of the financial services provider’s stock worth $179,000 after buying an additional 392 shares in the last quarter. CWM LLC increased its holdings in Mercantile Bank by 16.1% in the 3rd quarter. CWM LLC now owns 3,249 shares of the financial services provider’s stock worth $142,000 after purchasing an additional 450 shares in the last quarter. Principal Financial Group Inc. raised its position in Mercantile Bank by 8.1% in the second quarter. Principal Financial Group Inc. now owns 8,307 shares of the financial services provider’s stock valued at $337,000 after purchasing an additional 620 shares during the last quarter. Rhumbline Advisers boosted its stake in shares of Mercantile Bank by 2.7% during the second quarter. Rhumbline Advisers now owns 25,321 shares of the financial services provider’s stock valued at $1,027,000 after purchasing an additional 655 shares in the last quarter. Finally, Gradient Investments LLC acquired a new stake in shares of Mercantile Bank during the second quarter valued at about $28,000. Institutional investors own 58.63% of the company’s stock.

Mercantile Bank Stock Performance

The company has a fifty day moving average price of $43.64 and a two-hundred day moving average price of $41.01. The company has a market capitalization of $748.18 million, a P/E ratio of 8.99 and a beta of 0.95. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.03 and a quick ratio of 1.02.

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.