First Merchants Co. to Issue Quarterly Dividend of $0.35 (NASDAQ:FRME)

First Merchants Co. (NASDAQ:FRME) announced a quarterly dividend on Friday, February 7th,RTT News reports. Stockholders of record on Friday, March 7th will be paid a dividend of 0.35 per share by the bank on Friday, March 21st. This represents a $1.40 annualized dividend and a dividend yield of 3.13%. The ex-dividend date is Thursday, March 6th.

First Merchants has increased its dividend payment by an average of 7.2% annually over the last three years and has increased its dividend every year for the last 14 years. First Merchants has a dividend payout ratio of 34.5% meaning its dividend is sufficiently covered by earnings. Analysts expect First Merchants to earn $4.09 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 34.2%.

First Merchants Stock Performance

Shares of NASDAQ:FRME opened at $44.67 on Friday. The company has a current ratio of 0.90, a quick ratio of 0.89 and a debt-to-equity ratio of 0.41. First Merchants has a 12 month low of $30.55 and a 12 month high of $46.13. The company has a market capitalization of $2.62 billion, a price-to-earnings ratio of 13.06 and a beta of 1.07. The firm’s 50-day moving average is $41.39 and its 200 day moving average is $39.51.

First Merchants (NASDAQ:FRME) last released its earnings results on Thursday, January 30th. The bank reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.90 by $0.10. First Merchants had a return on equity of 9.23% and a net margin of 18.76%. Research analysts predict that First Merchants will post 3.71 EPS for the current year.

Insiders Place Their Bets

In related news, President Michael J. Stewart sold 7,248 shares of the company’s stock in a transaction on Monday, December 16th. The stock was sold at an average price of $43.73, for a total transaction of $316,955.04. Following the completion of the sale, the president now directly owns 92,664 shares in the company, valued at $4,052,196.72. This represents a 7.25 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 1.32% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

FRME has been the subject of several research analyst reports. Keefe, Bruyette & Woods lifted their target price on First Merchants from $50.00 to $52.00 and gave the stock an “outperform” rating in a research report on Friday, January 31st. Piper Sandler reiterated an “overweight” rating and set a $55.00 price objective (up previously from $52.00) on shares of First Merchants in a report on Friday, January 31st. Hovde Group upgraded shares of First Merchants from a “market perform” rating to an “outperform” rating and set a $50.00 target price on the stock in a research note on Friday, January 31st. Finally, Raymond James reaffirmed an “outperform” rating and set a $50.00 price target (up previously from $42.00) on shares of First Merchants in a research note on Friday, January 31st. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $49.00.

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.