Short Interest in First Merchants Co. (NASDAQ:FRME) Grows By 30.4%

First Merchants Co. (NASDAQ:FRME) was the recipient of a significant increase in short interest in February. As of February 28th, there was short interest totalling 423,100 shares, an increase of 30.4% from the February 13th total of 324,400 shares. Approximately 0.7% of the company’s stock are sold short. Based on an average trading volume of 248,400 shares, the days-to-cover ratio is currently 1.7 days.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Hovde Group upgraded First Merchants from a “market perform” rating to an “outperform” rating and set a $50.00 price target on the stock in a report on Friday, January 31st. Keefe, Bruyette & Woods increased their price target on First Merchants from $50.00 to $52.00 and gave the company an “outperform” rating in a report on Friday, January 31st. Raymond James reiterated an “outperform” rating and set a $50.00 price target (up previously from $42.00) on shares of First Merchants in a report on Friday, January 31st. Finally, Piper Sandler reiterated an “overweight” rating and set a $55.00 price target (up previously from $52.00) on shares of First Merchants in a report on Friday, January 31st. Two equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $49.00.

First Merchants Stock Performance

Shares of First Merchants stock traded up $0.14 during midday trading on Monday, hitting $40.45. The company had a trading volume of 100,420 shares, compared to its average volume of 236,683. First Merchants has a 1-year low of $30.55 and a 1-year high of $46.13. The company has a debt-to-equity ratio of 0.41, a current ratio of 0.90 and a quick ratio of 0.89. The business’s 50 day simple moving average is $41.91 and its two-hundred day simple moving average is $40.45. The stock has a market cap of $2.37 billion, a PE ratio of 11.84 and a beta of 1.05.

First Merchants (NASDAQ:FRME) last posted its quarterly earnings results on Thursday, January 30th. The bank reported $1.00 earnings per share for the quarter, topping analysts’ consensus estimates of $0.90 by $0.10. First Merchants had a net margin of 18.76% and a return on equity of 9.23%. As a group, equities analysts predict that First Merchants will post 3.79 EPS for the current fiscal year.

First Merchants Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 21st. Shareholders of record on Friday, March 7th will be paid a dividend of $0.35 per share. The ex-dividend date is Friday, March 7th. This represents a $1.40 dividend on an annualized basis and a yield of 3.46%. First Merchants’s dividend payout ratio is currently 40.94%.

Institutional Investors Weigh In On First Merchants

Institutional investors have recently bought and sold shares of the business. Nordea Investment Management AB boosted its stake in shares of First Merchants by 67.9% in the 4th quarter. Nordea Investment Management AB now owns 134,136 shares of the bank’s stock valued at $5,368,000 after purchasing an additional 54,265 shares in the last quarter. Y Intercept Hong Kong Ltd boosted its stake in shares of 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 purchasing an additional 13,370 shares in the last quarter. Sentinel Pension Advisors Inc. acquired a new stake in shares of First Merchants in the 4th quarter valued at $607,000. Bank of New York Mellon Corp boosted its stake in shares of First Merchants by 55.5% in the 4th quarter. Bank of New York Mellon Corp now owns 930,896 shares of the bank’s stock valued at $37,133,000 after purchasing an additional 332,168 shares in the last quarter. Finally, KBC Group NV boosted its stake in shares of First Merchants by 27.9% in the 4th quarter. KBC Group NV now owns 3,052 shares of the bank’s stock valued at $122,000 after purchasing an additional 665 shares in the last quarter. Institutional investors and hedge funds own 73.92% of the company’s stock.

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.