First Merchants (NASDAQ:FRME) Shares Gap Down – Here’s What Happened

Shares of First Merchants Co. (NASDAQ:FRME) gapped down prior to trading on Friday . The stock had previously closed at $44.10, but opened at $42.77. First Merchants shares last traded at $44.18, with a volume of 26,400 shares.

Wall Street Analyst Weigh In

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

First Merchants Stock Down 1.2 %

The company has a market capitalization of $2.56 billion, a PE ratio of 12.74 and a beta of 1.07. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.89 and a current ratio of 0.90. The company’s 50-day moving average is $41.63 and its 200 day moving average is $39.84.

First Merchants (NASDAQ:FRME) last posted its quarterly earnings results on Thursday, January 30th. The bank reported $1.00 EPS for the quarter, beating 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, analysts anticipate that First Merchants Co. will post 3.79 EPS for the current year.

First Merchants Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 21st. Shareholders of record on Friday, March 7th will be issued a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.21%. The ex-dividend date is Friday, March 7th. First Merchants’s payout ratio is 40.94%.

Insider Transactions at First Merchants

In other news, President Michael J. Stewart sold 7,248 shares of First Merchants stock in a transaction that occurred on 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 directly owns 92,664 shares in the company, valued at $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 SEC, which is available through this link. Company insiders own 1.32% of the company’s stock.

Institutional Investors Weigh In On First Merchants

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Nordea Investment Management AB lifted 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 valued at $5,368,000 after buying an additional 54,265 shares during the period. Principal Financial Group Inc. lifted its holdings in First Merchants by 1.3% in the third quarter. Principal Financial Group Inc. now owns 886,088 shares of the bank’s stock valued at $32,962,000 after acquiring an additional 11,521 shares during the period. Y Intercept Hong Kong Ltd boosted its position in First Merchants by 123.8% in 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 last quarter. Sentinel Pension Advisors Inc. bought a new stake in shares of First Merchants during the 4th quarter valued at about $607,000. Finally, Empowered Funds LLC grew its stake 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 valued at $7,854,000 after purchasing an additional 12,050 shares during the period. Hedge funds and other institutional investors 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.