William Blair Investment Management LLC Purchases Shares of 622,443 First Merchants Corporation $FRME

Key Points

• William Blair Investment Management purchased 622,443 shares of First Merchants, worth approximately $27.2 million, giving it a 0.99% stake. Institutional investors and hedge funds collectively own 73.92% of the company.
• First Merchants reported quarterly EPS of $0.74, missing the $1.02 consensus estimate, while revenue of $202.49 million was broadly in line with expectations. The stock was trading near $42, compared with a consensus analyst price target of $49.
• The company declared a quarterly dividend of $0.37 per share, equivalent to an annualized $1.48 payout and a 3.5% yield. Separately, director Larry W. Myers sold 10,000 shares, reducing his position by 9.11%.

William Blair Investment Management LLC purchased a new stake in shares of First Merchants Corporation (NASDAQ:FRME - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 622,443 shares of the bank's stock, valued at approximately $27,195,000. William Blair Investment Management LLC owned about 0.99% of First Merchants as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently modified their holdings of FRME. Ieq Capital LLC bought a new stake in shares of First Merchants in the second quarter worth $2,972,000. OneAscent Financial Services LLC bought a new position in First Merchants during the 2nd quarter worth $4,273,000. Allworth Financial LP bought a new position in First Merchants during the 2nd quarter worth $190,000. Vise Technologies Inc. acquired a new position in First Merchants during the 2nd quarter worth about $233,000. Finally, Great Lakes Advisors LLC acquired a new position in First Merchants during the 2nd quarter worth about $5,072,000. Institutional investors and hedge funds own 73.92% of the company's stock.

Insider Activity at First Merchants

In related news, Director Larry W. Myers sold 10,000 shares of the company's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $41.50, for a total transaction of $415,000.00. Following the sale, the director owned 99,751 shares in the company, valued at $4,139,666.50. This represents a 9.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.77% of the stock is currently owned by insiders.

First Merchants Trading Up 0.2%

FRME opened at $42.03 on Friday. First Merchants Corporation has a twelve month low of $34.66 and a twelve month high of $45.33. The company has a fifty day moving average of $42.93 and a 200-day moving average of $40.97. The stock has a market cap of $2.64 billion, a PE ratio of 13.47 and a beta of 0.84. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.56.

First Merchants (NASDAQ:FRME - Get Free Report) last released its earnings results 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). The firm had revenue of $202.49 million during the quarter, compared to analyst estimates of $202.78 million. First Merchants had a net margin of 17.05% and a return on equity of 8.86%. On average, sell-side analysts predict that First Merchants Corporation will post 3.94 EPS for the current year.

First Merchants Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Stockholders of record on Friday, September 4th will be paid 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 payout ratio is currently 47.44%.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on FRME. Wall Street Zen raised First Merchants from a "sell" rating to a "hold" rating in a research note on Sunday, May 17th. Weiss Ratings raised First Merchants from a "hold (c+)" rating to a "buy (b)" rating in a research note on Monday, August 3rd. Finally, Piper Sandler lifted their price objective on First Merchants from $49.00 to $51.00 and gave the stock an "overweight" rating in a research note on Friday, June 26th. Three equities 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, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $49.00.

First Merchants Company Profile

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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