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

Mercantile Bank Co. (NASDAQ:MBWM)’s stock price traded up 4.4% during trading on Tuesday after the company announced better than expected quarterly earnings. The company 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 EPS for the quarter, topping analysts’ consensus estimates of $1.18 by $0.04. Mercantile Bank had a net margin of 23.99% and a return on equity of 15.52%. The company had revenue of $93.08 million during the quarter, compared to the consensus estimate of $56.83 million. During the same period in the prior year, the business posted $1.30 EPS.

Mercantile Bank Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Friday, December 6th will be paid a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 3.10%. The ex-dividend date is Friday, December 6th. Mercantile Bank’s dividend payout ratio is currently 27.91%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Piper Sandler boosted their target price on shares of Mercantile Bank from $42.00 to $53.00 and gave the stock a “neutral” rating in a report on Wednesday, July 17th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $51.00 target price (up from $47.00) on shares of Mercantile Bank in a report on Wednesday, July 17th.

Insiders Place Their Bets

In related news, Director Robert B. Kaminski sold 2,000 shares of the company’s stock in a transaction dated Monday, July 22nd. The shares were sold at an average price of $48.01, for a total value of $96,020.00. Following the transaction, the director now owns 29,610 shares in the company, valued at approximately $1,421,576.10. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Mercantile Bank news, Director Robert B. Kaminski sold 3,000 shares of the firm’s stock in a transaction on Friday, July 19th. The stock was sold at an average price of $48.73, for a total transaction of $146,190.00. Following the transaction, the director now owns 31,610 shares in the company, valued at $1,540,355.30. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Robert B. Kaminski sold 2,000 shares of the business’s stock in a transaction dated Monday, July 22nd. The shares were sold at an average price of $48.01, for a total value of $96,020.00. Following the completion of the transaction, the director now directly owns 29,610 shares of the company’s stock, valued at approximately $1,421,576.10. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 10,500 shares of company stock valued at $491,418 over the last ninety days. 3.08% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Mercantile Bank

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Gradient Investments LLC acquired a new position in shares of Mercantile Bank during the 2nd quarter worth $28,000. Mattson Financial Services LLC bought a new position in shares of Mercantile Bank in the second quarter worth about $28,000. EMC Capital Management acquired a new stake in shares of Mercantile Bank in the 1st quarter valued at approximately $72,000. CWM LLC grew its holdings in shares of Mercantile Bank by 242.6% during the 2nd quarter. CWM LLC now owns 2,799 shares of the financial services provider’s stock valued at $114,000 after purchasing an additional 1,982 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in Mercantile Bank by 9.2% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 4,660 shares of the financial services provider’s stock worth $179,000 after purchasing an additional 392 shares in the last quarter. 58.63% of the stock is currently owned by institutional investors.

Mercantile Bank Price Performance

The business’s 50-day simple moving average is $43.64 and its two-hundred day simple moving average is $41.01. The stock has a market cap of $748.18 million, a price-to-earnings 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.