Mercantile Bank (MBWM) Stock Price, News & Analysis

Company Overview

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. The company also provides commercial and industrial loans; vacant land, land development, and residential construction loans; owner and non-owner occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; and consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, it offers courier services and safe deposit facilities; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products. The company was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.

Key Stats

• Today's Range: $48.56 to $49.67
• 50-Day Range: $41.26 to $51.16
• 52-Week Range: $33.46 to $51.31
• Volume: 10,826 shs
• Average Volume: 67,974 shs
• Market Capitalization: $797.80 million
• P/E Ratio: 9.93
• Dividend Yield: 2.91%
• Price Target: $52.00
• Consensus Rating: Hold

Mercantile Bank Stock Analysis - MarketRank™

Mercantile Bank scored higher than 59% of companies evaluated by MarketBeat, and ranked 538th out of 930 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.1 / 5
• Analyst Rating: Hold

Consensus Rating

Mercantile Bank has received a consensus rating of Hold. The company's average rating score is 2.25, and is based on 1 buy rating, 3 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Mercantile Bank has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -7.80%

Earnings Growth

Earnings for Mercantile Bank are expected to decrease by -7.80% in the coming year, from $4.87 to $4.49 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Mercantile Bank is 9.84, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 125.73.

Price to Earnings Ratio vs. Sector

The P/E ratio of Mercantile Bank is 9.84, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 46.28.

Price to Book Value per Share Ratio

Mercantile Bank has a P/B Ratio of 1.36. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.83% of the float of Mercantile Bank has been sold short.

Short Interest Ratio / Days to Cover

Mercantile Bank has a short interest ratio ("days to cover") of 2.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Mercantile Bank has recently decreased by 22.10%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 4.2 / 5
• Dividend Strength: Strong

Dividend Yield

Mercantile Bank pays a meaningful dividend of 2.97%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Mercantile Bank has been increasing its dividend for 13 years.

Dividend Coverage

The dividend payout ratio of Mercantile Bank is 28.92%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Mercantile Bank will have a dividend payout ratio of 32.07% next year. This indicates that Mercantile Bank will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.83% of the float of Mercantile Bank has been sold short.

Short Interest Ratio / Days to Cover

Mercantile Bank has a short interest ratio ("days to cover") of 2.1, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Mercantile Bank has recently decreased by 22.10%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.8 / 5
• News Sentiment: 1.05

News Sentiment

Mercantile Bank has a news sentiment score of 1.05. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.76 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for Mercantile Bank this week, compared to 2 articles on an average week.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Mercantile Bank insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $446,960.00 in company stock.

Percentage Held by Insiders

Only 3.08% of the stock of Mercantile Bank is held by insiders.

Percentage Held by Institutions

58.63% of the stock of Mercantile Bank is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

MBWM Stock Analysis - Frequently Asked Questions

How have MBWM shares performed this year?

Mercantile Bank's stock was trading at $40.38 on January 1st, 2024. Since then, MBWM shares have increased by 21.3% and is now trading at $49.00.
View the best growth stocks for 2024 here.

How were Mercantile Bank's earnings last quarter?

Mercantile Bank Co. (NASDAQ:MBWM) announced its earnings results on Tuesday, October, 15th. The financial services provider reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.18 by $0.04. The financial services provider earned $93.08 million during the quarter, compared to analyst estimates of $56.83 million. Mercantile Bank had a net margin of 22.77% and a trailing twelve-month return on equity of 14.59%.

Who are Mercantile Bank's major shareholders?

Top institutional shareholders of Mercantile Bank include State Street Corp (2.72%), Geode Capital Management LLC (2.34%), Banc Funds Co. LLC (1.89%) and Tributary Capital Management LLC (1.53%). Insiders that own company stock include Robert B Kaminski, Michael H Price, David B Ramaker, Nelson F Sanchez, Lonna Wiersma and Robert T Worthington.
View institutional ownership trends.

How do I buy shares of Mercantile Bank?

Shares of MBWM stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Mercantile Bank own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Mercantile Bank investors own include NVIDIA (NVDA), Broadcom (AVGO), Meta Platforms (META), Adobe (ADBE), Arista Networks (ANET), e.l.f. Beauty (ELF) and Jabil (JBL).

Company Calendar

• Ex-Dividend for 9/18 Dividend: 9/06/2024
• Dividend Payable: 9/18/2024
• Last Earnings: 10/15/2024
• Today: 11/21/2024
• Ex-Dividend for 12/18 Dividend: 12/06/2024
• Dividend Payable: 12/18/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 1/21/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: State commercial banks
• Sub-Industry: Regional Banks
• Current Symbol: NASDAQ:MBWM
• CUSIP: 58737610
• CIK: 1042729
• Web: www.mercbank.com
• Phone: (616) 406-3000
• Fax: 616-406-3737
• Employees: 670
• Year Founded: 1997

Price Target and Rating

• Average Stock Price Target: $52.00
• High Stock Price Target: $53.00
• Low Stock Price Target: $51.00
• Potential Upside/Downside: +7.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.25
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $4.98
• Trailing P/E Ratio: 9.70
• Forward P/E Ratio: 9.92
• P/E Growth: N/A
• Net Income: $82.22 million
• Net Margins: 22.77%
• Pretax Margin: 28.54%
• Return on Equity: 14.59%
• Return on Assets: 1.43%

Debt

• Debt-to-Equity Ratio: 0.95
• Current Ratio: 1.02
• Quick Ratio: 1.01

Sales & Book Value

• Annual Sales: $303.50 million
• Price / Sales: 2.57
• Cash Flow: $5.82 per share
• Price / Cash Flow: 8.30
• Book Value: $36.14 per share
• Price / Book: 1.34

Miscellaneous

• Outstanding Shares: 16,140,000
• Free Float: 15,645,000
• Market Cap: $780.05 million
• Optionable: Optionable
• Beta: 0.95