Mercantile Bank (NASDAQ:MBWM) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Mercantile Bank (NASDAQ:MBWM) from a hold rating to a sell rating in a research report report published on Thursday, Zacks.com reports.

According to Zacks, “Mercantile Bank Corporation serves businesses and consumers across Grand Rapids and Kent County with a full range of mortgage, lending, deposit and checking products and services in a friendly, hometown banking environment. “

A number of other research analysts have also recently weighed in on MBWM. BidaskClub upgraded shares of Mercantile Bank from a strong sell rating to a sell rating in a research note on Thursday, September 12th. ValuEngine upgraded shares of Mercantile Bank from a sell rating to a hold rating in a report on Thursday, August 1st.

Shares of MBWM traded up $0.16 during trading hours on Thursday, reaching $33.49. 306 shares of the stock traded hands, compared to its average volume of 35,033. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.05. Mercantile Bank has a 52-week low of $26.40 and a 52-week high of $35.82. The company’s 50-day moving average price is $31.75 and its two-hundred day moving average price is $32.53. The company has a market cap of $550.88 million, a P/E ratio of 13.25, a price-to-earnings-growth ratio of 1.66 and a beta of 0.82.

Mercantile Bank (NASDAQ:MBWM) last released its earnings results on Tuesday, July 16th. The financial services provider reported $0.63 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.02. Mercantile Bank had a net margin of 25.97% and a return on equity of 10.95%. The company had revenue of $37.45 million for the quarter, compared to analysts’ expectations of $35.51 million. On average, research analysts forecast that Mercantile Bank will post 2.58 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 18th. Shareholders of record on Friday, September 6th were issued a $0.27 dividend. This is an increase from Mercantile Bank’s previous quarterly dividend of $0.26. This represents a $1.08 dividend on an annualized basis and a yield of 3.22%. The ex-dividend date of this dividend was Thursday, September 5th. Mercantile Bank’s payout ratio is currently 42.69%.

A number of hedge funds and other institutional investors have recently made changes to their positions in MBWM. Dimensional Fund Advisors LP increased its holdings in Mercantile Bank by 4.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,131,042 shares of the financial services provider’s stock valued at $31,964,000 after acquiring an additional 49,382 shares during the last quarter. BNP Paribas Arbitrage SA increased its holdings in Mercantile Bank by 396.5% in the 1st quarter. BNP Paribas Arbitrage SA now owns 3,396 shares of the financial services provider’s stock valued at $111,000 after acquiring an additional 2,712 shares during the last quarter. SG Americas Securities LLC bought a new stake in Mercantile Bank in the 1st quarter valued at $131,000. Rhumbline Advisers increased its holdings in Mercantile Bank by 3.1% in the 1st quarter. Rhumbline Advisers now owns 24,019 shares of the financial services provider’s stock valued at $786,000 after acquiring an additional 717 shares during the last quarter. Finally, Victory Capital Management Inc. increased its holdings in Mercantile Bank by 9.8% in the 1st quarter. Victory Capital Management Inc. now owns 59,837 shares of the financial services provider’s stock valued at $1,958,000 after acquiring an additional 5,337 shares during the last quarter. Institutional investors own 54.68% of the company’s stock.

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 for 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.

Read More: Understanding the Price to Earnings Ratio (PE)

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