First Merchants Co. (NASDAQ:FRME) Sees Large Increase in Short Interest

First Merchants Co. (NASDAQ:FRME) saw a significant increase in short interest in the month of December. As of December 31st, there was short interest totalling 573,600 shares, an increase of 20.8% from the December 15th total of 474,800 shares. Based on an average daily trading volume, of 271,300 shares, the days-to-cover ratio is currently 2.1 days.

First Merchants Stock Performance

Shares of FRME opened at $40.27 on Friday. The firm has a market cap of $2.36 billion, a price-to-earnings ratio of 13.29 and a beta of 1.06. The company has a quick ratio of 0.89, a current ratio of 0.90 and a debt-to-equity ratio of 0.41. The business’s 50 day moving average is $41.84 and its two-hundred day moving average is $38.88. First Merchants has a 52-week low of $30.55 and a 52-week high of $46.13.

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

First Merchants Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, December 20th. Stockholders of record on Friday, December 6th were given a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, December 6th. This represents a $1.40 annualized dividend and a dividend yield of 3.48%. First Merchants’s payout ratio is 46.20%.

Wall Street Analyst Weigh In

FRME has been the subject of several recent research reports. Keefe, Bruyette & Woods increased their price objective on shares of First Merchants from $43.00 to $50.00 and gave the company an “outperform” rating in a research report on Wednesday, December 4th. Piper Sandler lowered their price target on shares of First Merchants from $50.00 to $47.00 and set an “overweight” rating for the company in a report on Monday, October 28th. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $42.60.

Insiders Place Their Bets

In other news, President Michael J. Stewart sold 7,248 shares of the stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $43.73, for a total value of $316,955.04. Following the completion of the sale, the president now owns 92,664 shares in the company, valued at approximately $4,052,196.72. This trade represents a 7.25 % 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 link. 1.40% of the stock is owned by insiders.

Institutional Trading of First Merchants

Several hedge funds and other institutional investors have recently bought and sold shares of FRME. Nomura Asset Management Co. Ltd. increased its stake in First Merchants by 108.3% during the third quarter. Nomura Asset Management Co. Ltd. now owns 750 shares of the bank’s stock valued at $28,000 after purchasing an additional 390 shares during the last quarter. Strategic Investment Solutions Inc. IL acquired a new position in shares of First Merchants in the 2nd quarter valued at about $34,000. Nisa Investment Advisors LLC boosted its holdings in shares of First Merchants by 139.1% in the 4th quarter. Nisa Investment Advisors LLC now owns 1,289 shares of the bank’s stock valued at $51,000 after buying an additional 750 shares during the period. Quest Partners LLC bought a new stake in shares of First Merchants during the 2nd quarter valued at about $45,000. Finally, Blue Trust Inc. raised its stake in 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 acquiring an additional 835 shares during the period. 73.92% of the stock is owned by institutional investors.

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.