Bank of America Corp DE Increases Holdings in First Merchants Corporation $FRME

Key Points

• Bank of America increased its First Merchants stake by 46.4% in the first quarter, owning 243,276 shares valued at approximately $9.42 million. Institutional investors collectively hold 73.92% of FRME’s outstanding stock.
• First Merchants reported quarterly EPS of $0.74, below the $1.02 analyst consensus, while revenue of $202.49 million was roughly in line with expectations. The stock opened at $41.92, versus a 12-month range of $34.66 to $45.33.
• The bank declared a quarterly dividend of $0.37, equivalent to $1.48 annually and a 3.5% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $49.00, although a company director recently sold 10,000 shares.

Bank of America Corp DE lifted its holdings in shares of First Merchants Corporation (NASDAQ:FRME - Free Report) by 46.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 243,276 shares of the bank's stock after purchasing an additional 77,155 shares during the period. Bank of America Corp DE owned about 0.39% of First Merchants worth $9,422,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Waterfront Wealth Inc. raised its position in First Merchants by 1.0% in the first quarter. Waterfront Wealth Inc. now owns 28,184 shares of the bank's stock worth $1,092,000 after acquiring an additional 275 shares during the period. Allworth Financial LP grew its position in shares of First Merchants by 10.5% during the 4th quarter. Allworth Financial LP now owns 3,424 shares of the bank's stock valued at $128,000 after acquiring an additional 324 shares during the period. Chicago Partners Investment Group LLC grew its position in shares of First Merchants by 1.3% during the 4th quarter. Chicago Partners Investment Group LLC now owns 25,264 shares of the bank's stock valued at $962,000 after acquiring an additional 335 shares during the period. California State Teachers Retirement System increased its stake in shares of First Merchants by 0.8% during the 2nd quarter. California State Teachers Retirement System now owns 54,058 shares of the bank's stock worth $2,070,000 after purchasing an additional 417 shares during the last quarter. Finally, Covestor Ltd increased its stake in shares of First Merchants by 68.9% during the 4th quarter. Covestor Ltd now owns 1,042 shares of the bank's stock worth $39,000 after purchasing an additional 425 shares during the last quarter. 73.92% of the stock is owned by hedge funds and other institutional investors.

First Merchants Stock Performance

Shares of FRME stock opened at $41.92 on Tuesday. The stock has a market capitalization of $2.63 billion, a P/E ratio of 13.44 and a beta of 0.84. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.56. The firm's 50 day moving average is $42.95 and its 200 day moving average is $40.98. First Merchants Corporation has a 12 month low of $34.66 and a 12 month high of $45.33.

First Merchants (NASDAQ:FRME - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The bank reported $0.74 earnings per share 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 8.86%. The business had revenue of $202.49 million during the quarter, compared to analysts' expectations of $202.78 million. On average, sell-side analysts anticipate that First Merchants Corporation will post 3.94 earnings per share for the current year.

First Merchants Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be issued a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, September 4th. First Merchants's dividend payout ratio (DPR) is presently 47.44%.

Analysts Set New Price Targets

Several research firms recently commented on FRME. Weiss Ratings upgraded First Merchants from a "hold (c+)" rating to a "buy (b)" rating in a research note on Monday, August 3rd. Piper Sandler raised their target price on 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 upgraded First Merchants from a "sell" rating to a "hold" rating in a research note on Sunday, May 17th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, First Merchants has an average rating of "Moderate Buy" and an average price target of $49.00.

Insider Buying and Selling at First Merchants

In other news, Director Larry W. Myers sold 10,000 shares of First Merchants stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $41.50, for a total value of $415,000.00. Following the completion of the transaction, the director directly owned 99,751 shares in the company, valued at approximately $4,139,666.50. The trade was a 9.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.77% of the company's stock.

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.

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