Mercantile Bank (NASDAQ:MBWM) Hits New 12-Month High – Should You Buy?

Mercantile Bank Corporation (NASDAQ:MBWM) reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $55.81 and last traded at $55.7460, with a volume of 36008 shares traded. The stock had previously closed at $54.91.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on MBWM shares. Stephens assumed coverage on Mercantile Bank in a report on Wednesday, March 25th. They set an “equal weight” rating and a $54.00 price objective on the stock. Wall Street Zen raised shares of Mercantile Bank to a “hold” rating in a research note on Saturday, March 28th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Mercantile Bank in a report on Friday, June 12th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $56.20.

Mercantile Bank Trading Up 1.5%

The company has a debt-to-equity ratio of 0.62, a current ratio of 0.93 and a quick ratio of 0.93. The company has a market cap of $962.54 million, a price-to-earnings ratio of 10.01 and a beta of 0.81. The business’s 50-day simple moving average is $52.44 and its 200-day simple moving average is $51.40.

Mercantile Bank (NASDAQ:MBWM) last released its quarterly earnings results on Tuesday, April 21st. The financial services provider reported $1.46 EPS for the quarter, beating the consensus estimate of $1.33 by $0.13. The business had revenue of $67.59 million for the quarter, compared to analyst estimates of $67.41 million. Mercantile Bank had a net margin of 24.19% and a return on equity of 13.73%. Research analysts predict that Mercantile Bank Corporation will post 5.63 earnings per share for the current fiscal year.

Mercantile Bank Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Friday, June 5th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Friday, June 5th. Mercantile Bank’s dividend payout ratio is currently 28.01%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MBWM. Kestra Advisory Services LLC purchased a new stake in shares of Mercantile Bank during the fourth quarter worth about $26,000. Quadrant Capital Group LLC grew its stake in Mercantile Bank by 63.8% in the 4th quarter. Quadrant Capital Group LLC now owns 891 shares of the financial services provider’s stock worth $43,000 after acquiring an additional 347 shares during the period. PNC Financial Services Group Inc. grew its stake in Mercantile Bank by 29.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 1,682 shares of the financial services provider’s stock worth $85,000 after acquiring an additional 387 shares during the period. Aquatic Capital Management LLC raised its holdings in Mercantile Bank by 94.9% in the 3rd quarter. Aquatic Capital Management LLC now owns 3,235 shares of the financial services provider’s stock valued at $146,000 after acquiring an additional 1,575 shares during the last quarter. Finally, Quantbot Technologies LP lifted its stake in shares of Mercantile Bank by 251.9% during the 2nd quarter. Quantbot Technologies LP now owns 4,370 shares of the financial services provider’s stock worth $203,000 after purchasing an additional 3,128 shares during the period. 58.63% of the stock is currently owned by hedge funds and other institutional investors.

About Mercantile Bank

Mercantile Bank Corporation (NASDAQ: MBWM) is the bank holding company for Mercantile Bank of Michigan, a full-service commercial bank headquartered in Grand Rapids, Michigan. Through its state-chartered subsidiary, the company provides a broad range of financial products and services to small and mid-sized businesses, professionals and consumers across West and Central Michigan.

The bank’s core offerings include deposit products such as checking, savings and money market accounts, alongside commercial and consumer loan portfolios.