First Merchants (NASDAQ:FRME) Releases Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• First Merchants (NASDAQ:FRME) reported earnings of $0.99 per share for the quarter, beating analysts' expectations by $0.03.
• The company recently announced a quarterly dividend of $0.36, reflecting a 3.9% dividend yield and a payout ratio of 37.31%.
• Brokerages have mixed ratings on the stock, with some downgrading it while others maintain price targets, indicating an average target price of $48.00.

First Merchants (NASDAQ:FRME - Get Free Report) issued its quarterly earnings results on Wednesday. The bank reported $0.99 EPS for the quarter, topping analysts' consensus estimates of $0.96 by $0.03, Zacks reports. The company had revenue of $172.35 million for the quarter, compared to analyst estimates of $172.78 million. First Merchants had a net margin of 21.35% and a return on equity of 9.88%. During the same quarter in the previous year, the business earned $0.84 earnings per share.

First Merchants Price Performance

Shares of NASDAQ FRME opened at $36.61 on Thursday. The firm's 50-day moving average price is $39.18 and its 200-day moving average price is $38.29. First Merchants has a 1-year low of $33.13 and a 1-year high of $46.13. The firm has a market capitalization of $2.11 billion, a P/E ratio of 9.48 and a beta of 1.05. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 0.41.

First Merchants Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 19th. Stockholders of record on Friday, September 5th were issued a dividend of $0.36 per share. The ex-dividend date was Friday, September 5th. This represents a $1.44 annualized dividend and a dividend yield of 3.9%. First Merchants's dividend payout ratio is currently 37.31%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on FRME shares. Raymond James Financial lowered shares of First Merchants from an "outperform" rating to a "market perform" rating in a report on Friday, September 26th. Keefe, Bruyette & Woods boosted their target price on shares of First Merchants from $49.00 to $50.00 and gave the company an "outperform" rating in a report on Friday, September 26th. Piper Sandler dropped their target price on shares of First Merchants from $49.00 to $48.00 and set an "overweight" rating on the stock in a report on Monday, July 28th. Weiss Ratings lowered shares of First Merchants from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, October 8th. Finally, Wall Street Zen lowered shares of First Merchants from a "hold" rating to a "sell" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $48.00.

Hedge Funds Weigh In On First Merchants

Institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC raised its holdings in shares of First Merchants by 361.7% during the second quarter. EverSource Wealth Advisors LLC now owns 771 shares of the bank's stock valued at $30,000 after purchasing an additional 604 shares during the period. Cerity Partners LLC acquired a new position in shares of First Merchants during the second quarter valued at about $203,000. Orion Porfolio Solutions LLC raised its holdings in shares of First Merchants by 10.9% during the second quarter. Orion Porfolio Solutions LLC now owns 6,489 shares of the bank's stock valued at $249,000 after purchasing an additional 639 shares during the period. Walleye Capital LLC acquired a new position in shares of First Merchants during the second quarter valued at about $303,000. Finally, Quantinno Capital Management LP acquired a new position in shares of First Merchants during the second quarter valued at about $340,000. Institutional investors and hedge funds own 73.92% of the company's stock.

First Merchants Company 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.