Fintel reports that on October 30, 2023, Raymond James maintained coverage of First Merchants (NASDAQ:FRME) with a Outperform recommendation.
Analyst Price Forecast Suggests 38.81% Upside
As of October 5, 2023, the average one-year price target for First Merchants is 37.23. The forecasts range from a low of 35.35 to a high of $39.90. The average price target represents an increase of 38.81% from its latest reported closing price of 26.82.
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The projected annual revenue for First Merchants is 746MM, an increase of 12.12%. The projected annual non-GAAP EPS is 4.81.
First Merchants Declares $0.34 Dividend
On August 9, 2023 the company declared a regular quarterly dividend of $0.34 per share ($1.36 annualized). Shareholders of record as of September 1, 2023 received the payment on September 15, 2023. Previously, the company paid $0.34 per share.
At the current share price of $26.82 / share, the stock's dividend yield is 5.07%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.13%, the lowest has been 2.07%, and the highest has been 5.33%. The standard deviation of yields is 0.77 (n=235).
The current dividend yield is 2.52 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.32. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.31%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 490 funds or institutions reporting positions in First Merchants. This is an increase of 3 owner(s) or 0.62% in the last quarter. Average portfolio weight of all funds dedicated to FRME is 0.17%, a decrease of 5.58%. Total shares owned by institutions decreased in the last three months by 0.08% to 50,998K shares. 
The put/call ratio of FRME is 1.33, indicating a bearish outlook.
What are Other Shareholders Doing?
Earnest Partners holds 2,836K shares representing 4.77% ownership of the company. In it's prior filing, the firm reported owning 3,078K shares, representing a decrease of 8.53%. The firm decreased its portfolio allocation in FRME by 23.71% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 1,823K shares, representing an increase of 0.51%. The firm decreased its portfolio allocation in FRME by 20.54% over the last quarter.
Cardinal Capital Management holds 1,751K shares representing 2.95% ownership of the company. In it's prior filing, the firm reported owning 2,134K shares, representing a decrease of 21.85%. The firm decreased its portfolio allocation in FRME by 24.68% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 1,541K shares representing 2.59% ownership of the company. In it's prior filing, the firm reported owning 1,549K shares, representing a decrease of 0.55%. The firm decreased its portfolio allocation in FRME by 18.93% over the last quarter.
IWM - iShares Russell 2000 ETF holds 1,470K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 1,265K shares, representing an increase of 13.99%. The firm decreased its portfolio allocation in FRME by 8.17% over the last quarter.
First Merchants Background Information
(This description is provided by the company.)
First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank). FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.
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