First Merchants (NASDAQ:FRME) Trading 4.8% Higher on Better-Than-Expected Earnings

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

The bank reported $1.00 EPS 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%.

First Merchants Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, December 20th. Shareholders of record on Friday, December 6th were given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 3.16%. The ex-dividend date was Friday, December 6th. First Merchants's dividend payout ratio (DPR) is 40.94%.

Analyst Ratings Changes

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

Insider Activity

In related news, President Michael J. Stewart sold 7,248 shares of the 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 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 legal filing with the SEC, which is available at this link. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of FRME. Nomura Asset Management Co. Ltd. lifted its position in First Merchants by 108.3% in the 3rd 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. Nisa Investment Advisors LLC lifted its holdings in shares of First Merchants by 139.1% in the fourth quarter. Nisa Investment Advisors LLC now owns 1,289 shares of the bank's stock valued at $51,000 after purchasing an additional 750 shares in the last quarter. Blue Trust Inc. boosted its position in shares of First Merchants by 78.9% during the third quarter. Blue Trust Inc. now owns 1,893 shares of the bank's stock worth $70,000 after buying an additional 835 shares during the period. KBC Group NV acquired a new stake in First Merchants in the 3rd quarter valued at approximately $89,000. Finally, Allworth Financial LP lifted its stake in First Merchants by 270.1% in the 4th quarter. Allworth Financial LP now owns 2,728 shares of the bank's stock valued at $109,000 after acquiring an additional 1,991 shares in the last quarter. Institutional investors own 73.92% of the company's stock.

First Merchants Trading Up 0.6 %

The stock has a market cap of $2.60 billion, a price-to-earnings ratio of 12.97 and a beta of 1.07. The business has a 50-day simple moving average of $41.37 and a two-hundred day simple moving average of $39.36. 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.