Mercantile Bank (NASDAQ:MBWM) Sees Strong Trading Volume – Still a Buy?

Shares of Mercantile Bank Corporation (NASDAQ:MBWM) saw unusually-high trading volume on Monday . Approximately 37,229 shares changed hands during trading, a decline of 44% from the previous session’s volume of 66,276 shares.The stock last traded at $46.4960 and had previously closed at $46.47.

Analyst Ratings Changes

MBWM has been the topic of several research analyst reports. Raymond James Financial reissued an “outperform” rating and issued a $52.00 target price (down previously from $55.00) on shares of Mercantile Bank in a report on Wednesday, October 22nd. Weiss Ratings reiterated a “buy (b-)” rating on shares of Mercantile Bank in a report on Tuesday, October 14th. Finally, Zacks Research cut shares of Mercantile Bank from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 22nd. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $54.50.

Mercantile Bank Price Performance

The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.79. The firm’s 50 day simple moving average is $45.08 and its 200 day simple moving average is $46.10. The company has a market capitalization of $755.65 million, a PE ratio of 8.80 and a beta of 0.94.

Mercantile Bank (NASDAQ:MBWM) last announced its quarterly earnings data on Tuesday, October 21st. The financial services provider reported $1.46 earnings per share for the quarter, beating analysts’ consensus estimates of $1.38 by $0.08. The company had revenue of $62.39 million during the quarter, compared to analyst estimates of $61.33 million. Mercantile Bank had a net margin of 23.05% and a return on equity of 14.07%. As a group, research analysts anticipate that Mercantile Bank Corporation will post 4.83 EPS for the current fiscal year.

Mercantile Bank Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 17th. Stockholders of record on Friday, December 5th will be paid a dividend of $0.38 per share. The ex-dividend date is Friday, December 5th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 3.3%. Mercantile Bank’s dividend payout ratio (DPR) is currently 28.79%.

Insider Transactions at Mercantile Bank

In related news, Director Nelson F. Sanchez purchased 1,000 shares of the business’s stock in a transaction dated Friday, October 31st. The shares were acquired at an average cost of $43.50 per share, for a total transaction of $43,500.00. Following the acquisition, the director owned 3,502 shares of the company’s stock, valued at $152,337. The trade was a 39.97% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Mercantile Bank

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue purchased a new stake in Mercantile Bank in the third quarter valued at approximately $29,000. Jones Financial Companies Lllp increased its holdings in shares of Mercantile Bank by 116.0% in the 3rd quarter. Jones Financial Companies Lllp now owns 838 shares of the financial services provider’s stock valued at $38,000 after acquiring an additional 450 shares during the period. Virtus Advisers LLC acquired a new position in shares of Mercantile Bank in the 1st quarter valued at $39,000. Ameritas Advisory Services LLC purchased a new stake in Mercantile Bank in the 2nd quarter valued at $42,000. Finally, Farther Finance Advisors LLC purchased a new stake in Mercantile Bank in the 2nd quarter valued at $54,000. Hedge funds and other institutional investors own 58.63% of the company’s stock.

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.