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

First Merchants Co. (NASDAQ:FRME) was the recipient of a large drop in short interest during the month of March. As of March 31st, there was short interest totalling 504,600 shares, a drop of 7.2% from the March 15th total of 543,500 shares. Based on an average daily volume of 269,000 shares, the days-to-cover ratio is currently 1.9 days.

Analyst Upgrades and Downgrades

FRME has been the topic of a number of analyst reports. StockNews.com cut shares of First Merchants from a “hold” rating to a “sell” rating in a research note on Friday. Raymond James lifted their price target on shares of First Merchants from $33.00 to $40.00 and gave the company an “outperform” rating in a research note on Monday, January 29th.

First Merchants Stock Down 0.7 %

FRME stock opened at $32.86 on Tuesday. The company’s 50 day moving average price is $33.78 and its 200 day moving average price is $32.76. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.86 and a current ratio of 0.86. First Merchants has a fifty-two week low of $24.52 and a fifty-two week high of $38.16. The firm has a market capitalization of $1.95 billion, a price-to-earnings ratio of 8.79 and a beta of 1.08.

First Merchants (NASDAQ:FRME) last released its earnings results on Thursday, January 25th. The bank reported $0.87 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.87. First Merchants had a net margin of 22.39% and a return on equity of 10.97%. The firm had revenue of $156.51 million for the quarter, compared to analyst estimates of $158.50 million. On average, equities research analysts anticipate that First Merchants will post 3.35 EPS for the current fiscal year.

First Merchants Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 1st were paid a $0.34 dividend. The ex-dividend date of this dividend was Thursday, February 29th. This represents a $1.36 annualized dividend and a yield of 4.14%. First Merchants’s dividend payout ratio is currently 36.36%.

Insider Activity at First Merchants

In related news, insider Stephan Fluhler sold 3,193 shares of the stock in a transaction that occurred on Wednesday, February 28th. The shares were sold at an average price of $33.17, for a total value of $105,911.81. Following the completion of the transaction, the insider now directly owns 24,070 shares of the company’s stock, valued at approximately $798,401.90. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On First Merchants

Several hedge funds have recently added to or reduced their stakes in the stock. International Assets Investment Management LLC acquired a new stake in shares of First Merchants during the fourth quarter worth $29,000. Voisard Asset Management Group Inc. acquired a new stake in First Merchants in the fourth quarter valued at $31,000. Strategic Investment Solutions Inc. IL acquired a new stake in First Merchants in the first quarter valued at $35,000. Jones Financial Companies Lllp acquired a new stake in First Merchants in the fourth quarter valued at $36,000. Finally, State of Wyoming lifted its holdings in First Merchants by 35.0% in the second quarter. State of Wyoming now owns 1,454 shares of the bank’s stock valued at $41,000 after acquiring an additional 377 shares during the period. 73.92% of the stock is currently owned by hedge funds and other institutional investors.

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.