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

Zacks Investment Research downgraded shares of Mercantile Bank (NASDAQ:MBWM) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning, 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. “

Several other equities analysts have also recently weighed in on MBWM. BidaskClub cut Mercantile Bank from a sell rating to a strong sell rating in a report on Saturday, July 13th. ValuEngine cut Mercantile Bank from a hold rating to a sell rating in a report on Tuesday, July 2nd.

Shares of NASDAQ MBWM traded down $0.14 during mid-day trading on Wednesday, hitting $32.39. The company had a trading volume of 23,375 shares, compared to its average volume of 31,006. The company has a market cap of $551.81 million, a P/E ratio of 12.80, a PEG ratio of 1.67 and a beta of 0.77. The company has a 50-day moving average price of $32.37. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 1.12. Mercantile Bank has a one year low of $26.40 and a one year high of $36.88.

Mercantile Bank (NASDAQ:MBWM) last announced its quarterly earnings data on Tuesday, July 16th. The financial services provider reported $0.63 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.61 by $0.02. The company had revenue of $37.45 million during the quarter, compared to analysts’ expectations of $35.51 million. Mercantile Bank had a return on equity of 11.10% and a net margin of 25.97%. On average, sell-side analysts forecast that Mercantile Bank will post 2.52 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 18th. Stockholders of record on Friday, September 6th will be issued a $0.27 dividend. This is a boost from Mercantile Bank’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend is Thursday, September 5th. This represents a $1.08 annualized dividend and a dividend yield of 3.33%. Mercantile Bank’s dividend payout ratio (DPR) is presently 41.11%.

Several hedge funds and other institutional investors have recently made changes to their positions in MBWM. Meeder Asset Management Inc. grew its holdings in shares of Mercantile Bank by 208.9% in the 1st quarter. Meeder Asset Management Inc. now owns 2,740 shares of the financial services provider’s stock valued at $88,000 after acquiring an additional 1,853 shares in the last quarter. BNP Paribas Arbitrage SA grew its holdings in shares of 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 in the last quarter. Advisor Group Inc. lifted its stake in Mercantile Bank by 36.9% in the 4th quarter. Advisor Group Inc. now owns 4,091 shares of the financial services provider’s stock valued at $116,000 after purchasing an additional 1,102 shares during the last quarter. SG Americas Securities LLC acquired a new stake in Mercantile Bank in the 1st quarter valued at about $131,000. Finally, Aperio Group LLC acquired a new stake in Mercantile Bank in the 2nd quarter valued at about $146,000. Institutional investors own 54.24% 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.

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