Factors Likely to Have Influenced Earnings Results Mercantile Bank (NASDAQ:MBWM)

Earnings results for Mercantile Bank (NASDAQ:MBWM)

Mercantile Bank Corporation is expected* to report earnings on 01/19/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 3 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.55. The reported EPS for the same quarter last year was $0.66.

Mercantile Bank last posted its quarterly earnings data on October 20th, 2020. The financial services provider reported $0.66 EPS for the quarter, beating the consensus estimate of $0.42 by $0.24. The firm earned $42.82 million during the quarter, compared to analyst estimates of $39.17 million. Mercantile Bank has generated $2.57 earnings per share over the last year and currently has a price-to-earnings ratio of 10.8. Mercantile Bank has confirmed that its next quarterly earnings report will be published on Tuesday, January 19th, 2021.

Analyst Opinion on Mercantile Bank (NASDAQ:MBWM)

2 Wall Street analysts have issued ratings and price targets for Mercantile Bank in the last 12 months. Their average twelve-month price target is $20.00, predicting that the stock has a possible downside of 30.63%. The high price target for MBWM is $20.00 and the low price target for MBWM is $20.00. There are currently 2 hold ratings for the stock, resulting in a consensus rating of “Hold.”

Mercantile Bank has received a consensus rating of Hold. The company’s average rating score is 2.00, and is based on no buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $20.00, Mercantile Bank has a forecasted downside of 30.6% from its current price of $28.83. Mercantile Bank has received no research coverage in the past 90 days.

Dividend Strength: Mercantile Bank (NASDAQ:MBWM)

Mercantile Bank pays a meaningful dividend of 3.88%, higher than the bottom 25% of all stocks that pay dividends. Mercantile Bank does not have a long track record of dividend growth. The dividend payout ratio of Mercantile Bank is 43.58%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Mercantile Bank will have a dividend payout ratio of 64.74% next year. This indicates that Mercantile Bank will be able to sustain or increase its dividend.

Insiders buying/selling: Mercantile Bank (NASDAQ:MBWM)

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 $87,640.00 in company stock. Only 3.20% of the stock of Mercantile Bank is held by insiders. 52.50% of the stock of Mercantile Bank is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Mercantile Bank (NASDAQ:MBWM

Earnings for Mercantile Bank are expected to decrease by -27.92% in the coming year, from $2.40 to $1.73 per share. The P/E ratio of Mercantile Bank is 10.84, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 22.61. The P/E ratio of Mercantile Bank is 10.84, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 20.07. Mercantile Bank has a P/B Ratio of 1.13. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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