First Merchants (FRME) Stock Price, News & Analysis

Company Overview

Founded in 1893, First Merchants Corporation is a diversified financial services holding company headquartered in Indianapolis, Indiana. Through its principal subsidiary, First Merchants Bank, the company offers a wide array of banking solutions to individuals, businesses and institutions. Services include deposit and lending products, cash management and payment solutions, mortgage financing and other consumer and commercial banking services. The bank’s retail network is complemented by digital banking platforms that enable customers to manage accounts, initiate transfers and access financial tools online or via mobile applications.

Over its history, First Merchants has expanded beyond its Indiana origins to serve communities in Ohio and Michigan. Growth has been driven by a combination of organic expansion and strategic acquisitions of community banks and trust companies that share its community‐oriented philosophy. This ongoing expansion has allowed the company to deliver localized service while leveraging centralized technology, risk management and operational infrastructure. By maintaining a community banking approach, First Merchants aims to build long‐term relationships and support economic development in each market it serves.

In addition to traditional banking, First Merchants offers wealth management and trust services through its First Merchants Wealth Management subsidiary. Offerings include investment advisory, retirement planning and estate administration tailored to high‐net‐worth individuals and families. The company also provides commercial and treasury management services such as merchant card processing, payroll administration and liquidity management. Its mortgage business works with homebuyers and referral partners to deliver customized purchase and refinance loan solutions.

First Merchants is led by President and Chief Executive Officer Mark Hardwick, whose leadership is supported by a seasoned executive team with expertise in banking, finance and risk management. The board of directors comprises community and industry leaders who guide the company’s strategic direction and governance. Committed to corporate responsibility, First Merchants engages in philanthropic efforts and community development programs across its service area, emphasizing financial literacy, small‐business support and charitable giving.

Key Stats

• Today's Range: $39.69 to $41.40
• 50-Day Range: $35.37 to $41.59
• 52-Week Range: $33.13 to $46.13
• Volume: 216,195 shs
• Average Volume: 273,970 shs
• Market Capitalization: $2.39 billion
• P/E Ratio: 11.51
• Dividend Yield: 3.51%
• Price Target: $46.40
• Consensus Rating: Moderate Buy

First Merchants Stock Analysis - MarketRank™

First Merchants scored higher than 96% of companies evaluated by MarketBeat, and ranked 74th out of 936 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

First Merchants has received a consensus rating of Moderate Buy. The company's average rating score is 2.80, and is based on 4 buy ratings, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

First Merchants has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 7.12%

Earnings Growth

Earnings for First Merchants are expected to grow by 7.12% in the coming year, from $3.79 to $4.06 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of First Merchants is 11.51, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 25.85.

Price to Earnings Ratio vs. Sector

The P/E ratio of First Merchants is 11.51, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 19.20.

Price to Book Value per Share Ratio

First Merchants has a P/B Ratio of 1.05. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.52% of the float of First Merchants has been sold short.

Short Interest Ratio / Days to Cover

First Merchants has a short interest ratio ("days to cover") of 2.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in First Merchants has recently increased by 13.51%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 5.0 / 5
• Dividend Strength: Strong

Dividend Leadership

First Merchants is a leading dividend payer. It pays a dividend yield of 3.51%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

First Merchants has been increasing its dividend for 13 years.

Dividend Coverage

The dividend payout ratio of First Merchants is 40.45%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, First Merchants will have a dividend payout ratio of 35.47% next year. This indicates that First Merchants will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: 2.5 / 5
• Environmental Score: -0.67

Percentage of Shares Shorted

1.52% of the float of First Merchants has been sold short.

Short Interest Ratio / Days to Cover

First Merchants has a short interest ratio ("days to cover") of 2.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in First Merchants has recently increased by 13.51%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.0 / 5
• News Sentiment: 1.46

News Sentiment

First Merchants has a news sentiment score of 1.46. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.94 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 4 news articles for First Merchants this week, compared to 4 articles on an average week.

MarketBeat Follows

5 people have added First Merchants to their MarketBeat watchlist in the last 30 days. This is an increase of 67% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, First Merchants insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.37% of the stock of First Merchants is held by insiders.

Percentage Held by Institutions

73.92% of the stock of First Merchants is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

FRME Stock Analysis - Frequently Asked Questions

How have FRME shares performed this year?

First Merchants' stock was trading at $39.89 on January 1st, 2025. Since then, FRME stock has increased by 2.8% and is now trading at $40.99.

How were First Merchants' earnings last quarter?

First Merchants Corporation (NASDAQ:FRME) released its quarterly earnings data on Thursday, April, 24th. The bank reported $0.94 EPS for the quarter, topping the consensus estimate of $0.91 by $0.03. The bank earned $160.32 million during the quarter, compared to the consensus estimate of $171.23 million. First Merchants had a net margin of 19.63% and a trailing twelve-month return on equity of 9.28%.
Read the conference call transcript.

Who are First Merchants' major shareholders?

First Merchants' top institutional investors include Wedge Capital Management L L P NC (0.05%), Atlas Brown Inc. (0.02%) and Wealth Enhancement Advisory Services LLC (0.01%). Insiders that own company stock include Patrick J Fehring, Michael J Stewart, Michael C Rechin, Gary Lehman, Charles E Schalliol, Howard Halderman, Stephan Fluhler and Jason R Sondhi.
View institutional ownership trends.

How do I buy shares of First Merchants?

Shares of FRME stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of First Merchants own?

Based on aggregate information from My MarketBeat watchlists, some other companies that First Merchants investors own include Tesla (TSLA), JPMorgan Chase & Co. (JPM), NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Netflix (NFLX) and Visa (V).

Company Calendar

• Last Earnings: 4/24/2025
• Record date for 6/20 Dividend: 6/06/2025
• Ex-Dividend for 6/20 Dividend: 6/06/2025
• Dividend Payable: 6/20/2025
• Today: 7/13/2025
• Next Earnings (Estimated): 7/24/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: BANKS - MIDWEST
• Sub-Industry: Regional Banks
• Current Symbol: NASDAQ:FRME
• CIK: 712534
• Web: www.firstmerchants.com
• Phone: (765) 747-1500
• Fax: 765-282-6304
• Employees: 2,120
• Year Founded: 1982

Price Target and Rating

• Average Price Target for First Merchants: $46.40
• High Price Target: $50.00
• Low Price Target: $38.00
• Potential Upside/Downside: +13.2%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.80
• Research Coverage: 5 Analysts

Profitability

• EPS (Trailing Twelve Months): $3.56
• Trailing P/E Ratio: 11.51
• Forward P/E Ratio: 10.82
• P/E Growth: N/A
• Net Income: $201.40 million
• Net Margins: 19.63%
• Pretax Margin: 22.58%
• Return on Equity: 9.28%
• Return on Assets: 1.14%

Debt

• Debt-to-Equity Ratio: 0.45
• Current Ratio: 0.90
• Quick Ratio: 0.90

Sales & Book Value

• Annual Sales: $1.07 billion
• Price / Sales: 2.23
• Cash Flow: $3.96 per share
• Price / Cash Flow: 10.36
• Book Value: $38.86 per share
• Price / Book: 1.05

Miscellaneous

• Outstanding Shares: 58,310,000
• Free Float: 57,508,000
• Market Cap: $2.39 billion
• Optionable: Optionable
• Beta: 1.02