First Merchants (NASDAQ:FRME) Releases Earnings Results

First Merchants (NASDAQ:FRME) issued its earnings results on Wednesday. The bank reported $1.03 earnings per share for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.01), FiscalAI reports. The business had revenue of $163.53 million during the quarter, compared to analyst estimates of $201.91 million. First Merchants had a net margin of 21.49% and a return on equity of 9.58%.

First Merchants Trading Up 0.0%

Shares of NASDAQ:FRME traded up $0.01 during midday trading on Wednesday, hitting $40.37. 345,139 shares of the stock were exchanged, compared to its average volume of 402,289. The business’s 50-day moving average price is $39.48 and its 200 day moving average price is $38.31. First Merchants has a 12 month low of $34.66 and a 12 month high of $43.22. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.90 and a current ratio of 0.91. The stock has a market capitalization of $2.56 billion, a price-to-earnings ratio of 10.38 and a beta of 0.88.

First Merchants Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Weiss Ratings raised First Merchants from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, April 2nd. Piper Sandler raised their target price on First Merchants from $46.00 to $49.00 and gave the company an “overweight” rating in a report on Wednesday, February 4th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $48.33.

Insider Buying and Selling

In related news, VP Larry W. Myers sold 5,000 shares of the firm’s stock in a transaction that occurred on 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 transaction, the vice president owned 109,491 shares in the company, valued at $4,543,876.50. This trade represents a 4.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Eva D. Scurlock sold 3,227 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $42.29, for a total transaction of $136,469.83. Following the completion of the transaction, the insider owned 20,063 shares of the company’s stock, valued at approximately $848,464.27. This trade represents a 13.86% decrease in their position. The SEC filing for this sale provides additional information. 1.77% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC raised its holdings in First Merchants by 325.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 796 shares of the bank’s stock valued at $30,000 after buying an additional 609 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of First Merchants by 361.7% in the 2nd 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 last quarter. Cerity Partners LLC bought a new stake in shares of First Merchants in the 2nd quarter valued at about $203,000. Inceptionr LLC bought a new stake in shares of First Merchants in the 4th quarter valued at about $219,000. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of First Merchants in the 3rd quarter valued at about $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.