First Merchants Corporation (NASDAQ:FRME) Receives Consensus Rating of “Hold” from Analysts

Shares of First Merchants Corporation (NASDAQ:FRME) have earned a consensus rating of “Hold” from the six analysts that are presently covering the company, Marketbeat Ratings reports. Four analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $49.00.

A number of equities analysts have weighed in on the company. Wall Street Zen upgraded First Merchants from a “sell” rating to a “hold” rating in a research note on Sunday, May 17th. Piper Sandler upped their target price on First Merchants from $49.00 to $51.00 and gave the stock an “overweight” rating in a research note on Friday, June 26th. Finally, Weiss Ratings lowered First Merchants from a “buy (b)” rating to a “hold (c+)” rating in a report on Monday, May 18th.

First Merchants Stock Up 3.1%

NASDAQ:FRME opened at $43.18 on Friday. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.94 and a quick ratio of 0.92. The company’s fifty day moving average price is $41.85 and its 200-day moving average price is $40.32. First Merchants has a 1-year low of $34.66 and a 1-year high of $45.33. The firm has a market capitalization of $2.72 billion, a P/E ratio of 13.84 and a beta of 0.84.

First Merchants (NASDAQ:FRME) last posted its earnings results on Wednesday, July 22nd. The bank reported $0.74 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.02 by ($0.28). First Merchants had a net margin of 17.05% and a return on equity of 9.02%. The business had revenue of $202.49 million for the quarter, compared to analyst estimates of $202.78 million. As a group, equities research analysts anticipate that First Merchants will post 4.26 EPS for the current year.

First Merchants Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were given a $0.37 dividend. The ex-dividend date was Friday, June 5th. This represents a $1.48 annualized dividend and a yield of 3.4%. This is a boost from First Merchants’s previous quarterly dividend of $0.36. First Merchants’s payout ratio is currently 47.44%.

Insider Activity at First Merchants

In other news, Director Larry W. Myers sold 10,000 shares of the firm’s 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 of the company’s stock, valued at $4,139,666.50. This trade represents a 9.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.77% of the stock is owned by insiders.

Institutional Trading of First Merchants

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FRME. EverSource Wealth Advisors LLC increased its holdings in First Merchants by 361.7% in the second quarter. EverSource Wealth Advisors LLC now owns 771 shares of the bank’s stock valued at $30,000 after buying an additional 604 shares in the last quarter. Smartleaf Asset Management LLC boosted its stake in shares of First Merchants by 325.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 796 shares of the bank’s stock worth $30,000 after acquiring an additional 609 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of First Merchants during the 4th quarter worth about $37,000. GAMMA Investing LLC grew its position in shares of First Merchants by 62.1% during the 4th quarter. GAMMA Investing LLC now owns 987 shares of the bank’s stock valued at $37,000 after acquiring an additional 378 shares during the period. Finally, Covestor Ltd increased its stake in shares of First Merchants by 68.9% in the 4th quarter. Covestor Ltd now owns 1,042 shares of the bank’s stock valued at $39,000 after purchasing an additional 425 shares in the last quarter. Institutional investors and hedge funds own 73.92% of the company’s stock.

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.