First Merchants (NASDAQ:FRME) Shares Gap Down - Should You Sell?

First Merchants Co. (NASDAQ:FRME - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $37.36, but opened at $36.25. First Merchants shares last traded at $35.78, with a volume of 13,505 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Keefe, Bruyette & Woods reissued an "outperform" rating and set a $45.00 price target on shares of First Merchants in a research report on Wednesday, August 28th. Hovde Group assumed coverage on shares of First Merchants in a research report on Monday, August 12th. They set a "market perform" rating and a $38.00 target price for the company. Stephens downgraded First Merchants from an "overweight" rating to an "equal weight" rating and cut their price target for the stock from $45.00 to $38.00 in a research report on Wednesday, August 7th. Finally, Piper Sandler boosted their price objective on First Merchants from $41.00 to $50.00 and gave the company an "overweight" rating in a report on Monday, July 29th. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $42.20.

First Merchants Trading Down 3.6 %

The company's 50-day moving average is $37.25 and its 200 day moving average is $35.49. The company has a market cap of $2.11 billion, a price-to-earnings ratio of 10.37 and a beta of 1.02. The company has a quick ratio of 0.86, a current ratio of 0.87 and a debt-to-equity ratio of 0.42.

First Merchants (NASDAQ:FRME - Get Free Report) last posted its earnings results on Thursday, July 25th. The bank reported $0.68 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.10). The business had revenue of $267.72 million for the quarter, compared to analyst estimates of $156.35 million. First Merchants had a net margin of 17.77% and a return on equity of 9.17%. During the same quarter last year, the business earned $1.02 earnings per share. Research analysts predict that First Merchants Co. will post 3.29 EPS for the current year.

First Merchants Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 20th. Stockholders of record on Friday, September 6th were given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 3.89%. The ex-dividend date was Friday, September 6th. First Merchants's dividend payout ratio (DPR) is presently 40.35%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in FRME. Waterfront Wealth Inc. raised its position in First Merchants by 1.1% during the second quarter. Waterfront Wealth Inc. now owns 26,433 shares of the bank's stock worth $880,000 after acquiring an additional 288 shares during the period. Inspire Investing LLC increased its stake in shares of First Merchants by 3.2% during the second quarter. Inspire Investing LLC now owns 10,614 shares of the bank's stock worth $353,000 after purchasing an additional 328 shares in the last quarter. Hsbc Holdings PLC raised its position in shares of First Merchants by 7.9% during the 2nd quarter. Hsbc Holdings PLC now owns 7,074 shares of the bank's stock worth $233,000 after purchasing an additional 519 shares during the last quarter. Blue Trust Inc. lifted its stake in First Merchants by 78.9% in 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. Finally, Strategic Investment Solutions Inc. IL acquired a new stake in First Merchants in the 2nd quarter worth about $34,000. 73.92% of the stock is owned by institutional investors and hedge funds.

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.