Mercantile Bank (NASDAQ:MBWM) Shares Up 4.4% on Better-Than-Expected Earnings

Mercantile Bank Co. (NASDAQ:MBWM) was up 4.4% on Tuesday following a stronger than expected earnings report. The company traded as high as $45.63 and last traded at $45.31. Approximately 19,050 shares traded hands during 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, 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 firm had revenue of $93.08 million during the quarter, compared to analyst estimates of $56.83 million. During the same period in the prior year, the business earned $1.30 EPS.

Mercantile Bank Dividend Announcement

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

Analyst Upgrades and Downgrades

MBWM has been the subject of a number of recent research reports. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $51.00 price target (up previously from $47.00) on shares of Mercantile Bank in a research report on Wednesday, July 17th. Piper Sandler increased 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.

Insider Buying and Selling

In other Mercantile Bank news, Director Michael H. Price sold 5,000 shares of the firm’s stock in a transaction that occurred on 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 transaction, the director now directly owns 21,556 shares in the company, valued at $982,306.92. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, Director Robert B. Kaminski sold 3,000 shares of the business’s stock in a transaction dated Friday, July 19th. The shares were sold at an average price of $48.73, for a total transaction of $146,190.00. Following the transaction, the director now directly owns 31,610 shares in the company, valued at $1,540,355.30. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Michael H. Price sold 5,000 shares of the firm’s stock in a transaction dated 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 sale, the director now 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 disclosure for this sale can be found here. Over the last quarter, insiders have sold 10,500 shares of company stock worth $491,418. Corporate insiders own 3.08% of the company’s stock.

Hedge Funds Weigh In On Mercantile Bank

A number of institutional investors have recently bought and sold shares of the business. Inspire Investing LLC increased its holdings in shares of Mercantile Bank by 218.8% in the second quarter. Inspire Investing LLC now owns 29,820 shares of the financial services provider’s stock valued at $1,210,000 after purchasing an additional 20,465 shares during the last quarter. Janney Montgomery Scott LLC acquired a new position in Mercantile Bank in the 1st quarter valued at about $452,000. AQR Capital Management LLC raised its holdings in Mercantile Bank by 108.7% in 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 during the period. Empowered Funds LLC lifted its position in Mercantile Bank by 8.1% during the first quarter. Empowered Funds LLC now owns 46,537 shares of the financial services provider’s stock worth $1,791,000 after acquiring an additional 3,500 shares during the last quarter. Finally, Hennion & Walsh Asset Management Inc. boosted its holdings in shares of Mercantile Bank by 16.7% during the first quarter. Hennion & Walsh Asset Management Inc. now owns 10,653 shares of the financial services provider’s stock worth $410,000 after acquiring an additional 1,523 shares during the period. Institutional investors and hedge funds own 58.63% of the company’s stock.

Mercantile Bank Stock Down 0.1 %

The company has a market cap of $748.18 million, a price-to-earnings ratio of 8.99 and a beta of 0.95. The firm has a 50-day moving average price of $43.64 and a 200 day moving average price of $41.01. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.03 and a quick ratio of 1.02.

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.