First Merchants (NASDAQ:FRME) Shares Gap Down After Earnings Miss

First Merchants Corporation (NASDAQ:FRME) gapped down prior to trading on Thursday following a weaker than expected 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.

The bank reported $0.74 EPS for the quarter, missing the consensus estimate 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 net margin of 18.87% and a return on equity of 9.58%.

First Merchants Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 3.6%. This is a boost from First Merchants’s previous quarterly dividend of $0.36. The ex-dividend date was Friday, June 5th. First Merchants’s dividend payout ratio is presently 43.53%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on FRME shares. Weiss Ratings lowered First Merchants from a “buy (b)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. Piper Sandler boosted their price target on shares of First Merchants from $49.00 to $51.00 and gave the stock an “overweight” rating in a report on Friday, June 26th. Finally, Wall Street Zen upgraded shares of First Merchants from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, First Merchants currently has an average rating of “Hold” and a consensus price target of $49.00.

Insider Buying and Selling at First Merchants

In other First Merchants news, Director Larry W. Myers sold 10,000 shares of the business’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 value of $415,000.00. Following the completion of the transaction, the director owned 99,751 shares of the company’s stock, valued at $4,139,666.50. The trade was a 9.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.77% of the company’s stock.

Institutional Investors Weigh In On First Merchants

Hedge funds have recently made changes to their positions in the business. EverSource Wealth Advisors LLC lifted its stake in First Merchants by 361.7% in the second quarter. EverSource Wealth Advisors LLC now owns 771 shares of the bank’s stock worth $30,000 after purchasing an additional 604 shares during the last quarter. Smartleaf Asset Management LLC grew its stake in shares of First Merchants by 325.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 796 shares of the bank’s stock valued at $30,000 after buying an additional 609 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. bought a new position in shares of First Merchants during the fourth quarter valued at about $37,000. GAMMA Investing LLC increased its holdings in shares of First Merchants by 62.1% in the fourth quarter. GAMMA Investing LLC now owns 987 shares of the bank’s stock worth $37,000 after buying an additional 378 shares during the period. Finally, Covestor Ltd increased its holdings in shares of First Merchants by 68.9% in the fourth quarter. Covestor Ltd now owns 1,042 shares of the bank’s stock worth $39,000 after buying an additional 425 shares during the period. 73.92% of the stock is currently owned by institutional investors.

First Merchants Stock Performance

The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.92 and a current ratio of 0.94. The business has a 50 day moving average price of $41.72 and a two-hundred day moving average price of $40.26. The company has a market cap of $2.59 billion, a P/E ratio of 12.11 and a beta of 0.84.

About First Merchants

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.