First Merchants (NASDAQ:FRME) Sets New 12-Month High – Time to Buy?

First Merchants Co. (NASDAQ:FRME) shares hit a new 52-week high on Monday . The company traded as high as $45.26 and last traded at $45.14, with a volume of 2381 shares trading hands. The stock had previously closed at $44.05.

Wall Street Analyst Weigh In

FRME has been the topic of several research analyst reports. Piper Sandler reduced their price target on shares of First Merchants from $50.00 to $47.00 and set an “overweight” rating on the stock in a research report on Monday, October 28th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $45.00 target price on shares of First Merchants in a research report on Wednesday, August 28th. Hovde Group started coverage on First Merchants in a research note on Monday, August 12th. They issued a “market perform” rating and a $38.00 target price for the company. Finally, Stephens cut First Merchants from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $45.00 to $38.00 in a research note on Wednesday, August 7th. Three investment analysts have rated the stock with a hold rating and three have given 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 $41.60.

First Merchants Price Performance

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 company has a market cap of $2.60 billion, a PE ratio of 14.62 and a beta of 1.01. The firm has a 50 day moving average of $39.05 and a two-hundred day moving average of $36.67.

First Merchants (NASDAQ:FRME) last released its earnings results on Thursday, October 24th. The bank reported $0.84 EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.06). The company had revenue of $265.95 million during the quarter, compared to analysts’ expectations of $160.55 million. First Merchants had a return on equity of 8.94% and a net margin of 16.94%. During the same period in the prior year, the company posted $0.94 earnings per share. Research analysts predict that First Merchants Co. will post 3.38 earnings per share for the current fiscal year.

First Merchants Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Shareholders of record on Friday, December 6th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Friday, December 6th. This represents a $1.40 annualized dividend and a yield of 3.16%. First Merchants’s dividend payout ratio (DPR) is presently 46.20%.

Institutional Investors Weigh In On First Merchants

Institutional investors have recently made changes to their positions in the company. Nomura Asset Management Co. Ltd. raised its holdings in First Merchants by 108.3% in the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 750 shares of the bank’s stock worth $28,000 after acquiring an additional 390 shares during the last quarter. Strategic Investment Solutions Inc. IL bought a new stake in shares of First Merchants in the 2nd quarter worth $34,000. Quest Partners LLC purchased a new position in shares of First Merchants in the second quarter worth $45,000. CWM LLC lifted its holdings in shares of First Merchants by 511.5% during the second quarter. CWM LLC now owns 1,920 shares of the bank’s stock valued at $64,000 after purchasing an additional 1,606 shares in the last quarter. Finally, 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 valued at $70,000 after buying an additional 835 shares during the last quarter. 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.