First Merchants (NASDAQ:FRME) Stock Price Up 4.8% After Strong Earnings

First Merchants Co. (NASDAQ:FRME)’s stock price shot up 4.8% 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 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 (EPS) for the quarter, beating the consensus estimate 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 Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, December 6th were paid a $0.35 dividend. The ex-dividend date of this dividend was Friday, December 6th. This represents a $1.40 annualized dividend and a dividend yield of 3.12%. First Merchants’s payout ratio is currently 46.20%.

Analysts Set New Price Targets

FRME has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods increased their price objective on First Merchants from $43.00 to $50.00 and gave the stock an “outperform” rating in a report on Wednesday, December 4th. Hovde Group raised First Merchants from a “market perform” rating to an “outperform” rating and set a $50.00 price target for the company in a research note on Friday. Finally, Piper Sandler cut their price objective on shares of First Merchants from $50.00 to $47.00 and set an “overweight” rating on the stock in a research note on Monday, October 28th. Two analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $46.25.

Insiders Place Their Bets

In other First Merchants news, President Michael J. Stewart sold 7,248 shares of the business’s 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 sale, the president now directly owns 92,664 shares in the company, valued at approximately $4,052,196.72. The trade was a 7.25 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.32% of the stock is currently owned by insiders.

Institutional Trading of First Merchants

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

First Merchants Price Performance

The stock has a 50-day moving average of $41.37 and a two-hundred day moving average of $39.28. The company has a current ratio of 0.90, a quick ratio of 0.89 and a debt-to-equity ratio of 0.41. The firm has a market cap of $2.64 billion, a price-to-earnings ratio of 14.79 and a beta of 1.06.

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.