First Merchants (NASDAQ:FRME) Stock Price Up 4.8% Following Better-Than-Expected Earnings

First Merchants Co. (NASDAQ:FRME)’s stock price traded up 4.8% during trading on Friday following a better than expected earnings announcement. The company traded as high as $45.20 and last traded at $44.76. 38,597 shares were traded during mid-day trading, a decline of 81% from the average session volume of 208,220 shares. The stock had previously closed at $42.71.

The bank reported $1.00 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $0.10. First Merchants had a net margin of 16.94% and a return on equity of 8.94%.

First Merchants Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, December 6th were paid a dividend of $0.35 per share. The ex-dividend date was Friday, December 6th. This represents a $1.40 annualized dividend and a dividend yield of 3.15%. First Merchants’s dividend payout ratio (DPR) is presently 46.20%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on FRME. Raymond James reissued an “outperform” rating and issued a $50.00 price objective (up from $42.00) on shares of First Merchants in a research note on Friday. Piper Sandler reissued an “overweight” rating and issued a $55.00 price target (up previously from $52.00) on shares of First Merchants in a research report on Friday. Hovde Group raised shares of First Merchants from a “market perform” rating to an “outperform” rating and set a $50.00 price objective for the company in a report on Friday. Finally, Keefe, Bruyette & Woods lifted their target price on shares of First Merchants from $50.00 to $52.00 and gave the stock an “outperform” rating in a report on Friday. Two analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $49.00.

Insider Activity

In related news, President Michael J. Stewart sold 7,248 shares of the stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $43.73, for a total value of $316,955.04. Following the completion of the sale, the president now owns 92,664 shares in the company, valued at approximately $4,052,196.72. This trade represents a 7.25 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On First Merchants

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Nordea Investment Management AB grew its holdings in shares of First Merchants by 67.9% during the 4th quarter. Nordea Investment Management AB now owns 134,136 shares of the bank’s stock worth $5,368,000 after purchasing an additional 54,265 shares in the last quarter. Principal Financial Group Inc. boosted its stake in First Merchants by 1.3% during the third quarter. Principal Financial Group Inc. now owns 886,088 shares of the bank’s stock worth $32,962,000 after buying an additional 11,521 shares in the last quarter. Y Intercept Hong Kong Ltd increased its holdings in First Merchants by 123.8% in the 3rd quarter. Y Intercept Hong Kong Ltd now owns 24,174 shares of the bank’s stock valued at $899,000 after buying an additional 13,370 shares during the period. Sentinel Pension Advisors Inc. acquired a new position in shares of First Merchants in the 4th quarter valued at $607,000. Finally, Empowered Funds LLC lifted its holdings in shares of First Merchants by 6.1% during the 3rd quarter. Empowered Funds LLC now owns 211,132 shares of the bank’s stock worth $7,854,000 after acquiring an additional 12,050 shares during the period. 73.92% of the stock is currently owned by institutional investors.

First Merchants Stock Performance

The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 14.67 and a beta of 1.06. The firm’s 50-day moving average price is $41.37 and its two-hundred day moving average price is $39.35. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.89 and a current ratio of 0.90.

About First Merchants

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.