First Merchants (NASDAQ:FRME) Announces Quarterly Earnings Results

Key Points

• First Merchants reported EPS of $1.03, missing the $1.04 consensus by $0.01, and posted revenue of $163.53 million versus the $201.91 million estimate; the quarter produced a net margin of 21.49% and a return on equity of 9.58%.
• The bank paid a quarterly dividend of $0.36 (annualized $1.44), implying a 3.6% dividend yield and a payout ratio of about 37%.
• Analysts are generally favorable—Weiss upgraded to a buy and Piper Sandler raised its price target to $49, leaving a consensus rating of “Moderate Buy” with a $48.33 target—while insiders have been selling shares and institutional investors hold roughly 73.9% of the stock.

First Merchants (NASDAQ:FRME - Get Free Report) issued its quarterly earnings data on Wednesday. The bank reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.04 by ($0.01), FiscalAI reports. First Merchants had a net margin of 21.49% and a return on equity of 9.58%. The business had revenue of $163.53 million during the quarter, compared to the consensus estimate of $201.91 million.

First Merchants Trading Up 0.0%

Shares of FRME stock traded up $0.01 on Wednesday, reaching $40.37. 345,139 shares of the stock were exchanged, compared to its average volume of 402,289. The stock has a market cap of $2.56 billion, a PE ratio of 10.38 and a beta of 0.88. First Merchants has a one year low of $34.66 and a one year high of $43.22. The company has a debt-to-equity ratio of 0.35, a current ratio of 0.91 and a quick ratio of 0.90. The stock has a 50 day moving average price of $39.48 and a 200 day moving average price of $38.31.

First Merchants Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were given a dividend of $0.36 per share. The ex-dividend date was Friday, March 6th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 3.6%. First Merchants's payout ratio is presently 37.02%.

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Weiss Ratings upgraded First Merchants from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, April 2nd. Piper Sandler lifted their price objective on First Merchants from $46.00 to $49.00 and gave the company an "overweight" rating in a research report on Wednesday, February 4th. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $48.33.

Insiders Place Their Bets

In other news, insider Eva D. Scurlock sold 3,227 shares of the business's stock in a transaction on Friday, February 6th. The stock was sold at an average price of $42.29, for a total transaction of $136,469.83. Following the completion of the sale, the insider owned 20,063 shares in the company, valued at $848,464.27. The trade was a 13.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Larry W. Myers sold 5,000 shares of the company's stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $41.50, for a total value of $207,500.00. Following the completion of the sale, the vice president owned 109,491 shares of the company's stock, valued at $4,543,876.50. This represents a 4.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 1.77% of the company's stock.

Institutional Investors Weigh In On First Merchants

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FRME. Smartleaf Asset Management LLC grew its stake in First Merchants by 325.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 796 shares of the bank's stock valued at $30,000 after acquiring an additional 609 shares during the period. EverSource Wealth Advisors LLC raised its stake in First Merchants by 361.7% in the second quarter. EverSource Wealth Advisors LLC now owns 771 shares of the bank's stock valued at $30,000 after buying an additional 604 shares during the period. Cerity Partners LLC bought a new stake in First Merchants in the second quarter valued at approximately $203,000. Inceptionr LLC bought a new position in shares of First Merchants during the fourth quarter worth approximately $219,000. Finally, CIBC Bancorp USA Inc. bought a new position in shares of First Merchants during the third quarter worth approximately $235,000. Institutional investors own 73.92% of the company's stock.

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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