First Merchants (NASDAQ:FRME) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded First Merchants from “hold” to “sell,” though the broader analyst picture remains mixed with a consensus rating of “Moderate Buy” and an average price target of $48.33.
• First Merchants reported Q1 earnings of $1.03 per share, topping estimates, but revenue of $163.53 million came in below expectations. Analysts still expect full-year EPS of 4.24.
• The stock traded around $40.41, near its 52-week range, while insider and institutional activity showed mixed signals, including a VP sale of 5,000 shares and continued buying by large funds.

First Merchants (NASDAQ:FRME - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Other equities research analysts also recently issued reports about the company. Weiss Ratings upgraded First Merchants from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday. Piper Sandler upped 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 investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $48.33.

First Merchants Trading Down 0.2%

Shares of FRME stock opened at $40.41 on Friday. First Merchants has a 1 year low of $34.66 and a 1 year high of $43.22. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.94 and a quick ratio of 0.90. The stock's 50 day simple moving average is $39.17 and its two-hundred day simple moving average is $38.54. The company has a market cap of $2.55 billion, a PE ratio of 11.89 and a beta of 0.86.

First Merchants (NASDAQ:FRME - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The bank reported $1.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.07. First Merchants had a return on equity of 9.58% and a net margin of 18.87%.The business had revenue of $163.53 million for the quarter, compared to the consensus estimate of $201.91 million. During the same period in the prior year, the business posted $1.00 earnings per share. Research analysts predict that First Merchants will post 4.24 earnings per share for the current year.

Insider Buying and Selling at First Merchants

In other news, VP Larry W. Myers sold 5,000 shares of the stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $41.50, for a total value of $207,500.00. Following the sale, the vice president directly owned 109,491 shares in the company, valued at approximately $4,543,876.50. This represents a 4.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 1.77% of the company's stock.

Institutional Investors Weigh In On First Merchants

Several hedge funds and other institutional investors have recently modified their holdings of the business. PNC Financial Services Group Inc. raised its holdings in shares of First Merchants by 4.9% in the first quarter. PNC Financial Services Group Inc. now owns 25,684 shares of the bank's stock worth $995,000 after buying an additional 1,197 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of First Merchants by 8.4% in the first quarter. Dimensional Fund Advisors LP now owns 3,596,017 shares of the bank's stock worth $139,272,000 after buying an additional 277,977 shares during the period. Swiss National Bank raised its holdings in shares of First Merchants by 8.9% in the first quarter. Swiss National Bank now owns 124,162 shares of the bank's stock worth $4,809,000 after buying an additional 10,100 shares during the period. Watershed Asset Management L.L.C. purchased a new stake in shares of First Merchants in the first quarter worth approximately $431,000. Finally, Sanctuary Advisors LLC raised its holdings in shares of First Merchants by 1.8% in the first quarter. Sanctuary Advisors LLC now owns 32,124 shares of the bank's stock worth $1,244,000 after buying an additional 579 shares during the period. 73.92% of the stock is currently owned by hedge funds and other institutional investors.

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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