First Merchants Corporation (FRME) – What Are Brokerages Saying About This Stock?

First Merchants Corporation (NASDAQ:FRME) has been given an average rating of “Moderate Buy” by the five brokerages that are currently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $46.00.

Several brokerages have issued reports on FRME. Stephens raised shares of First Merchants to a “hold” rating in a research note on Tuesday, September 22nd. Weiss Ratings restated a “buy (b)” rating on shares of First Merchants in a research note on Friday, October 30th. Raymond James Financial upgraded shares of First Merchants from a “market perform” rating to an “outperform” rating and set a $46.00 target price for the company in a research note on Tuesday, October 6th. Finally, Piper Sandler lowered their target price on shares of First Merchants from $51.00 to $46.00 and set an “overweight” rating on the stock in a report on Monday, October 5th.

First Merchants Stock Down 0.6%

First Merchants stock opened at $40.83 on Tuesday. The stock has a 50 day moving average of $40.56 and a two-hundred day moving average of $40.79. First Merchants has a twelve month low of $34.66 and a twelve month high of $45.33. The stock has a market capitalization of $2.56 billion, a price-to-earnings ratio of 12.64 and a beta of 0.90. The company has a current ratio of 0.93, a quick ratio of 0.95 and a debt-to-equity ratio of 0.42.

First Merchants (NASDAQ:FRME) last released its earnings results on Wednesday, October 21st. The bank reported $1.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.04 by $0.06. First Merchants had a return on equity of 9.11% and a net margin of 17.56%. The business had revenue of $205.33 million for the quarter, compared to analyst estimates of $203.94 million. As a group, research analysts expect that First Merchants will post 3.86 earnings per share for the current year.

First Merchants Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were given a $0.37 dividend. The ex-dividend date was Friday, September 4th. This represents a $1.48 dividend on an annualized basis and a yield of 3.6%. First Merchants’s dividend payout ratio (DPR) is presently 45.82%.

Hedge Funds Weigh In On First Merchants

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRME. Fifth Third Bancorp increased its holdings in First Merchants by 10.9% in the third quarter. Fifth Third Bancorp now owns 13,184 shares of the bank’s stock valued at $524,000 after buying an additional 1,301 shares in the last quarter. Chicago Partners Investment Group LLC lifted its position in shares of First Merchants by 2.2% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 26,676 shares of the bank’s stock valued at $1,085,000 after acquiring an additional 575 shares during the period. Cranbrook Wealth Management LLC lifted its position in shares of First Merchants by 23.2% during the 3rd quarter. Cranbrook Wealth Management LLC now owns 9,498 shares of the bank’s stock valued at $378,000 after acquiring an additional 1,791 shares during the period. Contravisory Investment Management Inc. boosted its stake in shares of First Merchants by 18.1% during the 3rd quarter. Contravisory Investment Management Inc. now owns 7,933 shares of the bank’s stock worth $316,000 after acquiring an additional 1,217 shares in the last quarter. Finally, GAMMA Investing LLC boosted its stake in shares of First Merchants by 23.1% during the 3rd quarter. GAMMA Investing LLC now owns 1,727 shares of the bank’s stock worth $69,000 after acquiring an additional 324 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 is a financial services holding company headquartered in Muncie, Indiana. Through its principal subsidiary, First Merchants Bank, the company provides banking and related financial services to individuals, families, businesses and institutions.

First Merchants Bank offers deposit accounts, consumer and commercial lending, mortgage services, treasury and cash-management solutions, online and mobile banking, investment management and trust services. The company also provides wealth-management and insurance-related services through affiliated operations.

Founded in 1893, First Merchants has expanded through organic growth and acquisitions and serves customers across Indiana, Ohio and Michigan.