First Merchants Corporation (NASDAQ:FRME) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• First Merchants has a “Moderate Buy” consensus rating from five analysts, with three buys and two holds. The average 12-month price target is $46, versus a recent share price of $39.59.
• Recent analyst actions were mixed but generally positive: Piper Sandler cut its target to $46 while maintaining an overweight rating, and Raymond James upgraded the stock to outperform with a $46 target.
• The bank reported quarterly EPS of $0.74, below the $1.02 consensus estimate, while revenue was roughly in line at $202.49 million. First Merchants also pays a $0.37 quarterly dividend, equivalent to a 3.7% annualized yield.

Shares of First Merchants Corporation (NASDAQ:FRME - Get Free Report) have been given a consensus rating of "Moderate Buy" by the five analysts that are presently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $46.00.

Several equities analysts have recently commented on the stock. Piper Sandler lowered their price target on shares of First Merchants from $51.00 to $46.00 and set an "overweight" rating for the company in a research report on Monday. Raymond James Financial upgraded shares of First Merchants from a "market perform" rating to an "outperform" rating and set a $46.00 price target on the stock in a research note on Tuesday. Stephens raised First Merchants to a "hold" rating in a report on Tuesday, September 22nd. Finally, Weiss Ratings raised First Merchants from a "hold (c+)" rating to a "buy (b)" rating in a report on Monday, August 3rd.

Institutional Trading of First Merchants

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Waterfront Wealth Inc. raised its stake in shares of First Merchants by 1.0% in the 1st quarter. Waterfront Wealth Inc. now owns 28,184 shares of the bank's stock worth $1,092,000 after buying an additional 275 shares in the last quarter. GAMMA Investing LLC boosted its stake in First Merchants by 24.9% during the second quarter. GAMMA Investing LLC now owns 1,403 shares of the bank's stock valued at $61,000 after buying an additional 280 shares in the last quarter. Chicago Partners Investment Group LLC grew its holdings in First Merchants by 1.6% during the first quarter. Chicago Partners Investment Group LLC now owns 25,657 shares of the bank's stock worth $1,036,000 after acquiring an additional 393 shares during the period. Sanctuary Advisors LLC grew its holdings in First Merchants by 1.8% during the first quarter. Sanctuary Advisors LLC now owns 32,124 shares of the bank's stock worth $1,244,000 after acquiring an additional 579 shares during the period. Finally, Fiduciary Financial Advisors acquired a new position in First Merchants during the second quarter worth about $32,000. 73.92% of the stock is currently owned by institutional investors.

First Merchants Stock Performance

Shares of NASDAQ FRME opened at $39.59 on Friday. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.56. The firm's 50-day moving average price is $41.55 and its two-hundred day moving average price is $41.25. First Merchants has a 52-week low of $34.66 and a 52-week high of $45.33. The stock has a market capitalization of $2.49 billion, a P/E ratio of 12.69 and a beta of 0.87.

First Merchants (NASDAQ:FRME - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The bank reported $0.74 EPS for the quarter, missing the consensus estimate of $1.02 by ($0.28). The company 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 17.05% and a return on equity of 8.86%. As a group, sell-side analysts forecast that First Merchants will post 3.91 earnings per share for the current year.

First Merchants Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, September 4th were given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date was Friday, September 4th. First Merchants's dividend payout ratio is currently 47.44%.

First Merchants Company Profile

First Merchants Corporation NASDAQ: FRME is a financial services 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.

Its offerings include personal and business deposit accounts, consumer and commercial loans, residential mortgage lending, cash-management and treasury services, investment and trust services, and wealth-management solutions.

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