First Merchants (NASDAQ:FRME) Share Price Breaks Above 50-Day Moving Average – Here’s Why

First Merchants Corporation (NASDAQ:FRME) passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $40.76 and traded as high as $41.19. First Merchants shares last traded at $41.09, with a volume of 494,153 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have commented on FRME shares. Weiss Ratings upgraded First Merchants from a “hold (c+)” rating to a “buy (b)” rating in a report on Monday, August 3rd. Piper Sandler decreased their target price on First Merchants from $51.00 to $46.00 and set an “overweight” rating for the company in a research report on Monday, October 5th. Stephens upgraded First Merchants to a “hold” rating in a report on Tuesday, September 22nd. Finally, Raymond James Financial raised First Merchants from a “market perform” rating to an “outperform” rating and set a $46.00 price target on the stock in a research report on Tuesday, October 6th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, First Merchants presently has a consensus rating of “Moderate Buy” and an average price target of $46.00.

First Merchants Stock Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.95 and a current ratio of 0.95. The firm has a market cap of $2.55 billion, a P/E ratio of 12.59 and a beta of 0.87. The firm’s fifty day moving average price is $40.66 and its 200 day moving average price is $40.68.

First Merchants (NASDAQ:FRME) last released its quarterly earnings data on Wednesday, October 21st. The bank reported $1.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.04 by $0.06. First Merchants had a net margin of 17.56% and a return on equity of 9.14%. The firm had revenue of $205.33 million for the quarter, compared to the consensus estimate of $203.94 million. Sell-side analysts expect that First Merchants Corporation will post 3.86 EPS for the current fiscal year.

First Merchants Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, September 18th. Shareholders of record on Friday, September 4th were issued a dividend of $0.37 per share. The ex-dividend date was Friday, September 4th. This represents a $1.48 dividend on an annualized basis and a yield of 3.6%. First Merchants’s dividend payout ratio is currently 45.82%.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in FRME. BlackRock Inc. purchased a new stake in shares of First Merchants during the 2nd quarter worth $232,637,000. Dimensional Fund Advisors LP grew its stake in First Merchants by 8.4% in the first quarter. Dimensional Fund Advisors LP now owns 3,596,017 shares of the bank’s stock valued at $139,272,000 after purchasing an additional 277,977 shares during the last quarter. Systematic Financial Management LP raised its holdings in First Merchants by 10.7% in the first quarter. Systematic Financial Management LP now owns 861,995 shares of the bank’s stock worth $33,385,000 after purchasing an additional 83,667 shares in the last quarter. First Trust Advisors LP raised its holdings in First Merchants by 1.4% in the first quarter. First Trust Advisors LP now owns 725,259 shares of the bank’s stock worth $28,089,000 after purchasing an additional 9,771 shares in the last quarter. Finally, William Blair Investment Management LLC bought a new position in First Merchants in the second quarter worth about $27,195,000. 73.92% of the stock is owned by institutional investors.

About First Merchants

First Merchants Corporation is a financial services holding company headquartered in Muncie, Indiana. Through its principal subsidiary, First Merchants Bank, the company provides banking and related financial services to individuals, families, businesses and institutions.

First Merchants Bank offers deposit accounts, consumer and commercial lending, mortgage services, treasury and cash-management solutions, online and mobile banking, investment management and trust services. The company also provides wealth-management and insurance-related services through affiliated operations.

Founded in 1893, First Merchants has expanded through organic growth and acquisitions and serves customers across Indiana, Ohio and Michigan.