Deutsche Bank AG Makes New $2.94 Million Investment in First Merchants Corporation $FRME

Key Points

• Deutsche Bank initiated a $2.94 million position in First Merchants during the second quarter, buying 67,265 shares and owning approximately 0.11% of the bank. Institutional investors collectively hold 73.92% of the company.
• First Merchants reported quarterly EPS of $0.74, below the $1.02 consensus estimate, while revenue of $202.49 million was broadly in line with expectations. Analysts project full-year EPS of $3.94.
• The company declared a quarterly dividend of $0.37 per share, equivalent to a 3.6% yield, while analysts maintain a “Moderate Buy” consensus with a $49 price target versus the reported $41.68 share price.

Deutsche Bank AG purchased a new position in shares of First Merchants Corporation (NASDAQ:FRME - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 67,265 shares of the bank's stock, valued at approximately $2,939,000. Deutsche Bank AG owned about 0.11% of First Merchants as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. EverSource Wealth Advisors LLC boosted its stake in First Merchants by 361.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 771 shares of the bank's stock worth $30,000 after purchasing an additional 604 shares in the last quarter. Smartleaf Asset Management LLC raised its holdings in shares of First Merchants by 325.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 796 shares of the bank's stock worth $30,000 after buying an additional 609 shares during the last quarter. Covestor Ltd lifted its stake in shares of First Merchants by 68.9% during 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. GAMMA Investing LLC lifted its stake in shares of First Merchants by 24.9% during the second quarter. GAMMA Investing LLC now owns 1,403 shares of the bank's stock worth $61,000 after buying an additional 280 shares during the period. Finally, Allworth Financial LP grew its holdings in shares of First Merchants by 10.5% during the fourth quarter. Allworth Financial LP now owns 3,424 shares of the bank's stock valued at $128,000 after buying an additional 324 shares during the last quarter. Institutional investors and hedge funds own 73.92% of the company's stock.

First Merchants Stock Performance

NASDAQ FRME opened at $41.68 on Thursday. The stock has a market capitalization of $2.62 billion, a price-to-earnings ratio of 13.36 and a beta of 0.84. The stock has a 50-day moving average of $42.98 and a 200 day moving average of $40.98. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.56. First Merchants Corporation has a twelve month low of $34.66 and a twelve month high of $45.33.

First Merchants (NASDAQ:FRME - Get Free Report) last posted its quarterly earnings data on Wednesday, July 22nd. The bank reported $0.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.28). First Merchants had a return on equity of 8.86% and a net margin of 17.05%.The firm had revenue of $202.49 million during the quarter, compared to analyst estimates of $202.78 million. Sell-side analysts anticipate that First Merchants Corporation will post 3.94 EPS for the current fiscal year.

First Merchants Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, September 4th will be given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Friday, September 4th. First Merchants's payout ratio is presently 47.44%.

Analyst Ratings Changes

Several research firms have weighed in on FRME. Piper Sandler boosted their price target on First Merchants from $49.00 to $51.00 and gave the company an "overweight" rating in a research note on Friday, June 26th. Wall Street Zen upgraded First Merchants from a "sell" rating to a "hold" rating in a research report on Sunday, May 17th. Finally, Weiss Ratings upgraded shares of First Merchants from a "hold (c+)" rating to a "buy (b)" rating in a report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, First Merchants presently has an average rating of "Moderate Buy" and a consensus target price of $49.00.

Insider Activity at First Merchants

In related news, Director Larry W. Myers sold 10,000 shares of the 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 of the company's stock, valued at approximately $4,139,666.50. This represents a 9.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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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