Mercantile Bank (NASDAQ:MBWM) Trading 6.9% Higher on Strong Earnings

Shares of Mercantile Bank Co. (NASDAQ:MBWM) rose 6.9% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $47.50 and last traded at $47.26. Approximately 11,700 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 55,183 shares. The stock had previously closed at $44.21.

The financial services provider reported $1.22 EPS for the quarter, beating analysts’ consensus estimates of $1.15 by $0.07. Mercantile Bank had a return on equity of 14.29% and a net margin of 21.99%.

Mercantile Bank Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 19th. Shareholders of record on Friday, March 7th will be issued a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 3.08%. This is a positive change from Mercantile Bank’s previous quarterly dividend of $0.36. The ex-dividend date of this dividend is Friday, March 7th. Mercantile Bank’s dividend payout ratio is 29.09%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on MBWM. Keefe, Bruyette & Woods boosted their price objective on shares of Mercantile Bank from $56.00 to $57.00 and gave the company an “outperform” rating in a research report on Wednesday. Hovde Group upgraded Mercantile Bank from a “market perform” rating to an “outperform” rating and set a $54.00 price objective on the stock in a report on Wednesday.

Insider Buying and Selling

In other Mercantile Bank news, Director Robert B. Kaminski sold 5,800 shares of the business’s stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $51.75, for a total transaction of $300,150.00. Following the completion of the sale, the director now owns 19,810 shares of the company’s stock, valued at approximately $1,025,167.50. The trade was a 22.65 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last three months, insiders have sold 10,300 shares of company stock valued at $521,218. Insiders own 3.08% of the company’s stock.

Hedge Funds Weigh In On Mercantile Bank

Hedge funds and other institutional investors have recently modified their holdings of the company. Federated Hermes Inc. raised its holdings in Mercantile Bank by 17.2% in the second quarter. Federated Hermes Inc. now owns 5,611 shares of the financial services provider’s stock valued at $228,000 after buying an additional 823 shares during the period. Thrivent Financial for Lutherans raised its stake in shares of Mercantile Bank by 12.5% in the 2nd quarter. Thrivent Financial for Lutherans now owns 40,140 shares of the financial services provider’s stock valued at $1,628,000 after acquiring an additional 4,452 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Mercantile Bank by 108.7% during the 2nd quarter. AQR Capital Management LLC now owns 174,355 shares of the financial services provider’s stock valued at $7,074,000 after acquiring an additional 90,802 shares in the last quarter. Susquehanna Fundamental Investments LLC purchased a new stake in Mercantile Bank during the 2nd quarter worth $404,000. Finally, Creative Planning raised its position in Mercantile Bank by 22.2% in the second quarter. Creative Planning now owns 14,571 shares of the financial services provider’s stock valued at $591,000 after purchasing an additional 2,644 shares during the period. 58.63% of the stock is owned by institutional investors and hedge funds.

Mercantile Bank Stock Performance

The stock has a market cap of $774.56 million, a PE ratio of 9.69 and a beta of 1.01. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.01 and a current ratio of 1.02. The stock has a fifty day simple moving average of $47.00 and a two-hundred day simple moving average of $45.39.

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.