First Merchants (NASDAQ:FRME) Stock Crosses Above 50-Day Moving Average - What's Next?

Key Points

• First Merchants shares crossed above their 50-day moving average, trading as high as $41.19 and recently at $41.09, compared with a 50-day average of $40.76.
• Analyst sentiment is generally positive: the stock has a consensus “Moderate Buy” rating from five analysts, with an average price target of $46.00.
• The bank exceeded quarterly earnings expectations, reporting $1.10 in EPS versus a $1.04 consensus estimate, while paying a $0.37 quarterly dividend representing a 3.6% annualized yield.

First Merchants Corporation (NASDAQ:FRME - Get Free Report) shares crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $40.76 and traded as high as $41.19. First Merchants shares last traded at $41.09, with a volume of 494,153 shares.

Wall Street Analysts Forecast Growth

FRME has been the topic of a number of recent research reports. Weiss Ratings raised First Merchants from a "hold (c+)" rating to a "buy (b)" rating in a report on Monday, August 3rd. Raymond James Financial raised First Merchants from a "market perform" rating to an "outperform" rating and set a $46.00 target price for the company in a report on Tuesday, October 6th. Piper Sandler cut their target price on First Merchants from $51.00 to $46.00 and set an "overweight" rating for the company in a research report on Monday, October 5th. Finally, Stephens upgraded First Merchants to a "hold" rating in a research report on Tuesday, September 22nd. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $46.00.

First Merchants Trading Up 1.0%

The company's fifty day moving average price is $40.76 and its two-hundred day moving average price is $40.65. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.56. The company has a market cap of $2.58 billion, a price-to-earnings ratio of 12.72 and a beta of 0.87.

First Merchants (NASDAQ:FRME - Get Free Report) last announced its earnings results on Wednesday, October 21st. The bank reported $1.10 EPS for the quarter, topping the consensus estimate of $1.04 by $0.06. First Merchants had a return on equity of 9.14% and a net margin of 17.56%. The business had revenue of $205.33 million for the quarter, compared to the consensus estimate of $203.94 million. Research analysts expect that First Merchants Corporation will post 3.85 earnings per share for the current year.

First Merchants Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were paid a $0.37 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $1.48 dividend on an annualized basis and a yield of 3.6%. First Merchants's payout ratio is currently 45.82%.

Institutional Trading of First Merchants

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bank of America Corp DE acquired a new position in First Merchants during the 2nd quarter worth about $9,001,000. William Blair Investment Management LLC bought a new position in shares of First Merchants in the second quarter worth about $27,195,000. Deutsche Bank AG acquired a new position in shares of First Merchants during the second quarter worth approximately $2,939,000. Y Intercept Hong Kong Ltd grew its stake in shares of First Merchants by 892.3% during the first quarter. Y Intercept Hong Kong Ltd now owns 84,049 shares of the bank's stock valued at $3,255,000 after purchasing an additional 75,579 shares during the last quarter. Finally, OneAscent Financial Services LLC acquired a new stake in shares of First Merchants in the second quarter valued at approximately $4,273,000. 73.92% of the stock is currently owned by institutional investors and hedge funds.

First Merchants Company Profile

First Merchants Corporation is a financial services holding company headquartered in Muncie, Indiana. Through its principal subsidiary, First Merchants Bank, the company provides banking and related financial services to individuals, families, businesses and institutions.

First Merchants Bank offers deposit accounts, consumer and commercial lending, mortgage services, treasury and cash-management solutions, online and mobile banking, investment management and trust services. The company also provides wealth-management and insurance-related services through affiliated operations.

Founded in 1893, First Merchants has expanded through organic growth and acquisitions and serves customers across Indiana, Ohio and Michigan.

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