Mendon Capital Advisors Corp Invests $5.30 Million in First Merchants Corporation $FRME

Key Points

• Mendon Capital Advisors Corp acquired a new stake in First Merchants Corporation, purchasing 131,125 shares valued at approximately $5,303,000, making it 2.6% of their investment portfolio.
• First Merchants Corporation plans to pay a quarterly dividend of $0.36 per share on September 19th, yielding 3.6% annually, with a dividend payout ratio of 37.31%.
• Wall Street analysts currently rate First Merchants as a "Buy" with an average target price of $48.25, despite Piper Sandler recently lowering their target from $49.00 to $48.00.

Mendon Capital Advisors Corp acquired a new position in shares of First Merchants Corporation (NASDAQ:FRME - Free Report) during the first quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 131,125 shares of the bank's stock, valued at approximately $5,303,000. First Merchants accounts for approximately 2.6% of Mendon Capital Advisors Corp's investment portfolio, making the stock its 14th biggest position. Mendon Capital Advisors Corp owned 0.22% of First Merchants as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also made changes to their positions in FRME. Nuveen LLC acquired a new stake in shares of First Merchants during the 1st quarter worth approximately $24,523,000. MetLife Investment Management LLC lifted its position in shares of First Merchants by 842.5% during the 1st quarter. MetLife Investment Management LLC now owns 334,593 shares of the bank's stock valued at $13,531,000 after buying an additional 299,092 shares in the last quarter. Cubist Systematic Strategies LLC lifted its position in shares of First Merchants by 1,034.4% during the 1st quarter. Cubist Systematic Strategies LLC now owns 202,055 shares of the bank's stock valued at $8,171,000 after buying an additional 184,243 shares in the last quarter. Curi RMB Capital LLC purchased a new position in shares of First Merchants during the 1st quarter valued at approximately $5,055,000. Finally, OneAscent Financial Services LLC lifted its position in shares of First Merchants by 100.4% during the 1st quarter. OneAscent Financial Services LLC now owns 247,024 shares of the bank's stock valued at $9,984,000 after buying an additional 123,738 shares in the last quarter. Institutional investors and hedge funds own 73.92% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on FRME. Wall Street Zen upgraded First Merchants from a "sell" rating to a "hold" rating in a research report on Saturday, May 24th. Piper Sandler decreased their price objective on First Merchants from $49.00 to $48.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. Four equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average target price of $48.25.

First Merchants Trading Down 0.9%

Shares of NASDAQ:FRME traded down $0.36 during midday trading on Friday, reaching $40.03. 149,804 shares of the company's stock were exchanged, compared to its average volume of 193,207. The firm's 50 day simple moving average is $40.04 and its two-hundred day simple moving average is $38.77. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.90 and a quick ratio of 0.90. The stock has a market cap of $2.31 billion, a price-to-earnings ratio of 10.37 and a beta of 1.10. First Merchants Corporation has a fifty-two week low of $33.13 and a fifty-two week high of $46.13.

First Merchants (NASDAQ:FRME - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The bank reported $0.98 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.94 by $0.04. The firm had revenue of $170.52 million during the quarter, compared to the consensus estimate of $172.13 million. First Merchants had a return on equity of 9.88% and a net margin of 21.35%.During the same period last year, the company earned $0.68 EPS. As a group, sell-side analysts forecast that First Merchants Corporation will post 3.79 EPS for the current fiscal year.

First Merchants Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Friday, September 5th will be given a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Friday, September 5th. First Merchants's payout ratio is currently 37.31%.

About First Merchants

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. The company offers a range of financial services, including time, savings, and demand deposits; and consumer, commercial, agri-business, public finance, and real estate mortgage loans.