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

First Merchants Co. (NASDAQ:FRME) was the target of a significant growth in short interest in the month of November. As of November 15th, there was short interest totalling 563,900 shares, a growth of 20.0% from the October 31st total of 469,900 shares. Based on an average daily volume of 269,300 shares, the days-to-cover ratio is currently 2.1 days.

First Merchants Stock Performance

First Merchants stock opened at $43.69 on Tuesday. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.89 and a current ratio of 0.90. First Merchants has a fifty-two week low of $30.55 and a fifty-two week high of $46.13. The company has a market capitalization of $2.56 billion, a PE ratio of 14.42 and a beta of 1.01. The company has a 50 day moving average price of $39.54 and a 200-day moving average price of $36.91.

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

First Merchants Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Friday, December 6th will be paid a dividend of $0.35 per share. The ex-dividend date of this dividend is Friday, December 6th. This represents a $1.40 annualized dividend and a yield of 3.20%. First Merchants’s payout ratio is 46.20%.

Institutional Investors Weigh In On First Merchants

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Nomura Asset Management Co. Ltd. raised its stake in shares of First Merchants by 108.3% during the third quarter. Nomura Asset Management Co. Ltd. now owns 750 shares of the bank’s stock worth $28,000 after purchasing an additional 390 shares during the last quarter. Strategic Investment Solutions Inc. IL purchased a new stake in shares of First Merchants in the second quarter valued at about $34,000. Quest Partners LLC acquired a new position in shares of First Merchants during the second quarter worth about $45,000. CWM LLC raised its holdings in First Merchants by 511.5% during the second quarter. CWM LLC now owns 1,920 shares of the bank’s stock worth $64,000 after purchasing an additional 1,606 shares in the last quarter. Finally, Blue Trust Inc. raised its holdings 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 purchasing an additional 835 shares in the last quarter. 73.92% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on FRME shares. Keefe, Bruyette & Woods restated an “outperform” rating and set a $45.00 price target on shares of First Merchants in a research report on Wednesday, August 28th. Piper Sandler decreased their target price on First Merchants from $50.00 to $47.00 and set an “overweight” rating for the company in a research report on Monday, October 28th. Stephens downgraded First Merchants from an “overweight” rating to an “equal weight” rating and reduced their price target for the company from $45.00 to $38.00 in a report on Wednesday, August 7th. Finally, Hovde Group began coverage on shares of First Merchants in a report on Monday, August 12th. They issued a “market perform” rating and a $38.00 price objective for the company. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $41.60.

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.