First Merchants Corporation (NASDAQ:FRME) Holdings Cut by Phocas Financial Corp.

Key Points

• Phocas Financial Corp. reduced its stake in First Merchants Corporation by 5.4%, selling 15,088 shares to now hold 266,538 shares valued at approximately $10.78 million.
• First Merchants recently declared an increased quarterly dividend of $0.36 per share, resulting in an annualized dividend of $1.44 and a yield of 3.9%.
• Analysts currently maintain a "Moderate Buy" rating for First Merchants with an average price target of $46.20, reflecting a mix of hold and buy ratings.

Phocas Financial Corp. reduced its stake in shares of First Merchants Corporation (NASDAQ:FRME - Free Report) by 5.4% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 266,538 shares of the bank's stock after selling 15,088 shares during the quarter. First Merchants accounts for 1.7% of Phocas Financial Corp.'s holdings, making the stock its 6th biggest holding. Phocas Financial Corp. owned approximately 0.46% of First Merchants worth $10,779,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also bought and sold shares of the company. PNC Financial Services Group Inc. grew its stake in shares of First Merchants by 4.3% during the first quarter. PNC Financial Services Group Inc. now owns 24,573 shares of the bank's stock worth $994,000 after buying an additional 1,008 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of First Merchants during the first quarter valued at about $921,000. Picton Mahoney Asset Management acquired a new stake in shares of First Merchants during the first quarter valued at about $1,101,000. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of First Merchants by 13.1% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 17,005 shares of the bank's stock valued at $688,000 after buying an additional 1,965 shares during the period. Finally, Spectrum Wealth Counsel LLC bought a new position in shares of First Merchants during the first quarter valued at $56,000. Institutional investors and hedge funds own 73.92% of the company's stock.

First Merchants Stock Down 0.8%

FRME traded down $0.31 during midday trading on Thursday, hitting $37.16. The company had a trading volume of 41,528 shares, compared to its average volume of 291,263. First Merchants Corporation has a 52 week low of $33.13 and a 52 week high of $46.13. The stock's 50 day moving average price is $38.61 and its 200 day moving average price is $39.36. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $2.14 billion, a price-to-earnings ratio of 9.61 and a beta of 1.08.

First Merchants (NASDAQ:FRME - Get Free Report) last posted its quarterly earnings data on Wednesday, July 23rd. The bank reported $0.98 EPS for the quarter, beating the consensus estimate of $0.94 by $0.04. The firm had revenue of $170.52 million during the quarter, compared to analyst estimates of $172.13 million. First Merchants had a net margin of 21.35% and a return on equity of 9.88%. During the same quarter last year, the business posted $0.68 EPS. On average, research analysts anticipate that First Merchants Corporation will post 3.79 earnings per share for the current fiscal year.

First Merchants Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 20th. Stockholders of record on Friday, June 6th were given a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 3.9%. This is a boost from First Merchants's previous quarterly dividend of $0.35. The ex-dividend date was Friday, June 6th. First Merchants's dividend payout ratio (DPR) is presently 37.31%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Keefe, Bruyette & Woods reduced their price target on First Merchants from $52.00 to $49.00 and set an "outperform" rating on the stock in a research report on Friday, April 25th. Piper Sandler reduced their target price on First Merchants from $49.00 to $48.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. Finally, Wall Street Zen upgraded shares of First Merchants from a "sell" rating to a "hold" rating in a report on Saturday, May 24th. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $46.20.

First Merchants Profile

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.