First Merchants (NASDAQ:FRME) Issues Quarterly Earnings Results, Misses Expectations By $0.28 EPS

First Merchants (NASDAQ:FRME) announced its quarterly earnings results on Wednesday. The bank reported $0.74 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.02 by ($0.28), FiscalAI reports. First Merchants had a net margin of 18.87% and a return on equity of 9.58%. The company had revenue of $202.49 million during the quarter, compared to analyst estimates of $202.78 million.

First Merchants Stock Down 0.6%

FRME stock traded down $0.28 during midday trading on Wednesday, hitting $43.75. 555,696 shares of the company’s stock were exchanged, compared to its average volume of 397,540. The company has a current ratio of 0.94, a quick ratio of 0.92 and a debt-to-equity ratio of 0.52. First Merchants has a 12-month low of $34.66 and a 12-month high of $45.33. The firm has a 50 day moving average price of $41.64 and a 200-day moving average price of $40.22. The stock has a market capitalization of $2.76 billion, a price-to-earnings ratio of 12.87 and a beta of 0.84.

First Merchants Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid a dividend of $0.37 per share. This is a boost from First Merchants’s previous quarterly dividend of $0.36. The ex-dividend date was Friday, June 5th. This represents a $1.48 dividend on an annualized basis and a yield of 3.4%. First Merchants’s payout ratio is 43.53%.

Insider Activity at First Merchants

In other news, Director Larry W. Myers sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $41.50, for a total transaction of $415,000.00. Following the completion of the sale, the director owned 99,751 shares of the company’s stock, valued at approximately $4,139,666.50. This trade represents a 9.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 1.77% of the company’s stock.

Institutional Trading of First Merchants

Several institutional investors have recently added to or reduced their stakes in FRME. State Street Corp grew its holdings in First Merchants by 0.3% during the 2nd quarter. State Street Corp now owns 2,005,625 shares of the bank’s stock worth $76,815,000 after acquiring an additional 6,924 shares in the last quarter. Nuveen LLC lifted its holdings in First Merchants by 10.9% during the 4th quarter. Nuveen LLC now owns 1,058,247 shares of the bank’s stock worth $39,663,000 after buying an additional 104,260 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in First Merchants by 0.9% during the 4th quarter. Victory Capital Management Inc. now owns 956,197 shares of the bank’s stock worth $35,838,000 after buying an additional 8,699 shares during the last quarter. Bank of New York Mellon Corp grew its position in shares of First Merchants by 14.4% in the 4th quarter. Bank of New York Mellon Corp now owns 764,136 shares of the bank’s stock worth $28,640,000 after acquiring an additional 96,340 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in shares of First Merchants by 15.0% in the 4th quarter. First Trust Advisors LP now owns 715,488 shares of the bank’s stock valued at $26,816,000 after acquiring an additional 93,215 shares during the last quarter. 73.92% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

FRME has been the subject of several analyst reports. Wall Street Zen raised First Merchants from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. Piper Sandler raised their target price on First Merchants from $49.00 to $51.00 and gave the company an “overweight” rating in a report on Friday, June 26th. Finally, Weiss Ratings lowered First Merchants from a “buy (b)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $49.00.

First Merchants Company Profile

First Merchants Corporation, through its subsidiary First Merchants Bank, offers a comprehensive suite of banking and financial services to individuals, businesses and public sector clients. The company’s core business activities include retail and commercial banking, lending, treasury and cash management, and wealth advisory services. With a focus on relationship banking, First Merchants seeks to deliver tailored solutions for deposit accounts, loan financing and other credit products.

On the consumer side, First Merchants provides checking and savings accounts, certificates of deposit, personal and mortgage loans, and electronic banking conveniences.