Macatawa Story

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MCBC -- USA Stock  

USD 9.49  0.41  4.52%

Macatawa Bank Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 79,068.6. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 51.7 M, whereas Revenue Per Employee is forecasted to decline to about 207.4 K. While some baby boomers are getting worried about financial services space, it is reasonable to go over Macatawa Bank. We will evaluate why we are still optimistic in anticipation of a recovery. Here I will also expose some primary fundamental factors affecting Macatawa Bank's services, and outline how it will impact the outlook for investors this year.
Published over a month ago
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What are the odds of Macatawa Bank to slip in February?
Macatawa Bank reported the previous year's revenue of 80.49 M. Net Income was 29.34 M with profit before overhead, payroll, taxes, and interest of 83.67 M. About 24.0% of the company outstanding shares are owned by corporate insiders. Macatawa Bank has price-to-book ratio of 1.32. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.39. The firm last dividend was issued on the 9th of November 2020. Macatawa Bank had 105:100 split on the 9th of May 2007.

And What about dividends?

A dividend is the distribution of a portion of Macatawa Bank earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Macatawa Bank dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Macatawa one year expected dividend income is about $0.15 per share.
As of March 3, 2021, Preferred Dividends Income Statement Impact is expected to decline to about 15.7 M. In addition to that, Payment of Dividends and Other Cash Distributions is expected to decline to about (11.2 M).
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact15.8 M15.7 M
Payment of Dividends and Other Cash Distributions-10.9 M-11.2 M
Dividend Yield 0.038  0.0326 
Dividends per Basic Common Share 0.32  0.28 
Investing in dividend-paying stocks, such as Macatawa Bank Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Macatawa Bank must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Macatawa Bank. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Macatawa Bank's Liquidity

Macatawa Bank financial leverage refers to using borrowed capital as a funding source to finance Macatawa Bank Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Macatawa Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Macatawa Bank's total debt and its cash.

How Macatawa utilizes its cash?

To perform a cash flow analysis of Macatawa Bank, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Macatawa Bank is receiving and how much cash it distributes out in a given period. The Macatawa Bank cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Macatawa Bank Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 30.57 Million

What did Macatawa Bank file with SEC?

The SEC filings are financial statements or other formal documents of Macatawa Bank Corp that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.
Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Macatawa shareholders may or may not be submitted as SEC does not always require it.
28th of January 2021
Financial Statements and Exhibits. Results of Operations and Financial Condition
View
4th of September 2020
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
View
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Macatawa shareholders may or may not be submitted as SEC does not always require it.

Payment of 1724 shares by Craig Hankinson of Macatawa Bank subject to Rule 16b-3

Legal trades by Macatawa Bank insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Macatawa insider trading alert for payment of common stock by Craig Hankinson, Chief Operating Officer, on 2nd of December 2020. This event was filed by Macatawa Bank Corp with SEC on 2020-12-02. Statement of changes in beneficial ownership - SEC Form 4. Craig Hankinson currently serves as chief credit officer, sr. vp, chief credit officer of macatawa bank and sr. vp of macatawa bank of Macatawa Bank [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Macatawa Bank

Macatawa Bank maintains a total of thirty-four million one hundred thousand outstanding shares. Macatawa Bank holds significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Ownership Breakdown

Retail Investors
40.76%
Insiders
23.98%
Institutions
35.26%
Retail Investors40.76
Insiders23.98
Institutions35.26

Momentum Analysis of Macatawa Bank suggests possible reversal in February

The coefficient of variation is down to 792.79 as of today. As of the 17th of January 2021, Macatawa Bank secures the Mean Deviation of 1.97, downside deviation of 2.18, and Risk Adjusted Performance of 0.1329. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Macatawa Bank, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Macatawa Bank, which can be compared to its peers in the industry. Please verify Macatawa Bank information ratio, value at risk, and the relationship between the standard deviation and treynor ratio to decide if Macatawa Bank is priced some-what accurately, providing market reflects its recent price of 9.05 per share. Given that Macatawa Bank has jensen alpha of 0.2931, we recommend you to check Macatawa Bank's last-minute market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas many other companies within the banks?regional industry are still a little expensive, even after the recent corrections, Macatawa Bank may offer a potential longer-term growth to investors. To conclude, as of the 17th of January 2021, our primary 30 days 'Buy-vs-Sell' recommendation on the company is Strong Hold. We believe Macatawa Bank is currently fairly valued with below average chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Macatawa Bank Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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