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

Shares of Mercantile Bank Co. (NASDAQ:MBWM) were up 4.4% during mid-day 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. Approximately 19,050 shares traded hands during mid-day trading, a decline of 73% from the average daily 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, beating the consensus estimate of $1.18 by $0.04. Mercantile Bank had a return on equity of 15.52% and a net margin of 23.99%. The company had revenue of $93.08 million for the quarter, compared to analyst estimates of $56.83 million. During the same period in the prior year, the company posted $1.30 EPS.

Mercantile Bank Announces Dividend

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

Analyst Ratings Changes

MBWM has been the subject of a number of research reports. Keefe, Bruyette & Woods reiterated an “outperform” rating and issued a $51.00 price objective (up from $47.00) on shares of Mercantile Bank in a research report on Wednesday, July 17th. Piper Sandler raised their price objective on shares of Mercantile Bank from $42.00 to $53.00 and gave the company a “neutral” rating in a research note on Wednesday, July 17th.

Insiders Place Their Bets

In other news, Director Michael H. Price sold 5,000 shares of the company’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 completion of the sale, the director now directly owns 21,556 shares of the company’s stock, valued at $982,306.92. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, Director Robert B. Kaminski sold 2,000 shares of the firm’s stock in a transaction on Monday, July 22nd. The stock was sold at an average price of $48.01, for a total transaction of $96,020.00. Following the sale, the director now 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 sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Michael H. Price sold 5,000 shares of Mercantile Bank 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 transaction, the director now owns 21,556 shares in the company, valued at approximately $982,306.92. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 10,500 shares of company stock worth $491,418. Insiders own 3.08% of the company’s stock.

Institutional Investors Weigh In On Mercantile Bank

Hedge funds have recently modified their holdings of the business. AQR Capital Management LLC increased its stake in 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 worth $7,074,000 after purchasing an additional 90,802 shares in the last quarter. American Century Companies Inc. increased its position in shares of Mercantile Bank by 18.2% during the second quarter. American Century Companies Inc. now owns 308,849 shares of the financial services provider’s stock worth $12,530,000 after acquiring an additional 47,528 shares in the last quarter. LSV Asset Management raised its holdings in shares of Mercantile Bank by 15.4% during the second quarter. LSV Asset Management now owns 260,129 shares of the financial services provider’s stock worth $10,553,000 after acquiring an additional 34,725 shares during the period. Vanguard Group Inc. lifted its position in Mercantile Bank by 2.8% in the 1st quarter. Vanguard Group Inc. now owns 805,334 shares of the financial services provider’s stock valued at $30,997,000 after acquiring an additional 21,616 shares in the last quarter. Finally, Inspire Investing LLC boosted its stake in Mercantile Bank by 218.8% in the 2nd quarter. Inspire Investing LLC now owns 29,820 shares of the financial services provider’s stock worth $1,210,000 after purchasing an additional 20,465 shares during the period. Institutional investors and hedge funds own 58.63% of the company’s stock.

Mercantile Bank Stock Performance

The stock has a market cap of $748.18 million, a P/E ratio of 8.99 and a beta of 0.95. The stock has a fifty day simple moving average of $43.64 and a 200-day simple moving average of $41.01. The company has a debt-to-equity ratio of 1.03, a quick ratio of 1.02 and a current ratio of 1.03.

Mercantile Bank Company Profile

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.