First Merchants (NASDAQ:FRME) Shares Gap Down Following Weak Earnings

First Merchants Corporation (NASDAQ:FRME) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $43.75, but opened at $39.60. First Merchants shares last traded at $41.0330, with a volume of 76,847 shares trading hands.

The bank reported $0.74 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.28). The firm had revenue of $202.49 million for the quarter, compared to the consensus estimate of $202.78 million. First Merchants had a return on equity of 9.58% and a net margin of 18.87%.

First Merchants Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were paid a $0.37 dividend. This is an increase from First Merchants’s previous quarterly dividend of $0.36. The ex-dividend date was Friday, June 5th. This represents a $1.48 annualized dividend and a yield of 3.6%. First Merchants’s dividend payout ratio (DPR) is 43.53%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on FRME shares. Weiss Ratings cut shares of First Merchants from a “buy (b)” rating to a “hold (c+)” rating in a research note on Monday, May 18th. Piper Sandler raised their price objective on shares of First Merchants from $49.00 to $51.00 and gave the stock an “overweight” rating in a research report on Friday, June 26th. Finally, Wall Street Zen raised First Merchants from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. Two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $49.00.

Insider Activity at First Merchants

In related news, Director Larry W. Myers sold 10,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $41.50, for a total transaction of $415,000.00. Following the sale, the director owned 99,751 shares in the company, valued at approximately $4,139,666.50. This trade represents a 9.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.77% of the company’s stock.

Institutional Trading of First Merchants

A number of institutional investors and hedge funds have recently bought and sold shares of FRME. EverSource Wealth Advisors LLC raised its position in shares of First Merchants by 361.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 771 shares of the bank’s stock worth $30,000 after acquiring an additional 604 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in First Merchants by 325.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 796 shares of the bank’s stock worth $30,000 after purchasing an additional 609 shares during the period. GAMMA Investing LLC grew its stake in First Merchants by 62.1% during the fourth quarter. GAMMA Investing LLC now owns 987 shares of the bank’s stock worth $37,000 after purchasing an additional 378 shares during the period. Thurston Springer Miller Herd & Titak Inc. bought a new stake in First Merchants in the fourth quarter worth approximately $37,000. Finally, Covestor Ltd lifted its stake in First Merchants by 68.9% in the fourth quarter. Covestor Ltd now owns 1,042 shares of the bank’s stock valued at $39,000 after buying an additional 425 shares during the period. 73.92% of the stock is currently owned by institutional investors and hedge funds.

First Merchants Stock Performance

The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of 12.11 and a beta of 0.84. The company has a 50 day simple moving average of $41.72 and a 200-day simple moving average of $40.26. The company has a quick ratio of 0.92, a current ratio of 0.94 and a debt-to-equity ratio of 0.52.

First Merchants Company Profile

First Merchants Corporation, through its subsidiary First Merchants Bank, offers a comprehensive suite of banking and financial services to individuals, businesses and public sector clients. The company’s core business activities include retail and commercial banking, lending, treasury and cash management, and wealth advisory services. With a focus on relationship banking, First Merchants seeks to deliver tailored solutions for deposit accounts, loan financing and other credit products.

On the consumer side, First Merchants provides checking and savings accounts, certificates of deposit, personal and mortgage loans, and electronic banking conveniences.