First Merchants (NASDAQ:FRME) Shares Gap Down - What's Next?

First Merchants Co. (NASDAQ:FRME - Get Free Report) shares gapped down before the market opened 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 changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Piper Sandler restated an "overweight" rating and issued a $55.00 target price (up previously from $52.00) on shares of First Merchants 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 reaffirmed an "outperform" rating and issued a $50.00 price objective (up previously from $42.00) on shares of First Merchants in a report on Friday, January 31st. Finally, Hovde Group upgraded 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. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. Based on data from MarketBeat.com, First Merchants presently has a consensus rating of "Moderate Buy" and an average price target of $49.00.

First Merchants Stock Down 0.2 %

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 $2.52 billion, a PE ratio of 12.57 and a beta of 1.07. The company's 50 day moving average price is $41.62 and its two-hundred day moving average price is $40.00.

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First Merchants (NASDAQ:FRME - Get Free Report) last released its quarterly earnings results on Thursday, January 30th. 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 return on equity of 9.23% and a net margin of 18.76%. On average, equities research analysts expect that First Merchants Co. will post 3.79 EPS for the current fiscal year.

First Merchants Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, March 21st. Investors of record on Friday, March 7th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 3.26%. The ex-dividend date is Friday, March 7th. First Merchants's dividend payout ratio is 40.94%.

Insider Buying and Selling at First Merchants

In other news, President Michael J. Stewart sold 7,248 shares of the firm's stock in a transaction on Monday, December 16th. The shares were sold at an average price of $43.73, for a total transaction of $316,955.04. Following the sale, the president now directly owns 92,664 shares in the company, valued at $4,052,196.72. This trade represents a 7.25 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 1.32% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Nomura Asset Management Co. Ltd. lifted its position in shares of First Merchants by 108.3% in the third quarter. Nomura Asset Management Co. Ltd. now owns 750 shares of the bank's stock valued at $28,000 after acquiring an additional 390 shares in the last quarter. Federated Hermes Inc. bought a new stake in First Merchants during the 4th quarter valued at approximately $37,000. Nisa Investment Advisors LLC lifted its holdings in First Merchants by 139.1% in the 4th quarter. Nisa Investment Advisors LLC now owns 1,289 shares of the bank's stock worth $51,000 after purchasing an additional 750 shares in the last quarter. Sterling Capital Management LLC boosted its stake in First Merchants by 809.9% in the 4th quarter. Sterling Capital Management LLC now owns 1,838 shares of the bank's stock worth $73,000 after purchasing an additional 1,636 shares during the period. Finally, Blue Trust Inc. grew its holdings in First Merchants by 78.9% during the 3rd quarter. Blue Trust Inc. now owns 1,893 shares of the bank's stock valued at $70,000 after buying an additional 835 shares in the last quarter. 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.