First Merchants (FRME) Declares $0.32 Dividend
First Merchants said on February 8, 2023 that its board of directors declared a regular quarterly dividend of $0.32 per share ($1.28 annualized). Shareholders of record as of March 2, 2023 will receive the payment on March 17, 2023. Previously, the company paid $0.32 per share.
At the current share price of $42.25 / share, the stock's dividend yield is 3.03%. Looking back five years and taking a sample every week, the average dividend yield has been 2.76%, the lowest has been 1.63%, and the highest has been 4.55%. The standard deviation of yields is 0.65 (n=236).
The current dividend yield is 0.40 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.34. 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 0.23%, demonstrating that it has increased its dividend over time.
Analyst Price Forecast Suggests 18.30% Upside
As of February 12, 2023, the average one-year price target for First Merchants is $49.98. The forecasts range from a low of $45.45 to a high of $53.55. The average price target represents an increase of 18.30% from its latest reported closing price of $42.25.
The projected annual revenue for First Merchants is $746MM, an increase of 22.06%. The projected annual EPS is $4.81, an increase of 25.57%.
What is the Fund Sentiment?
There are 487 funds or institutions reporting positions in First Merchants. This is a decrease of 8 owner(s) or 1.62% in the last quarter. Average portfolio weight of all funds dedicated to FRME is 0.23%, an increase of 15.57%. Total shares owned by institutions increased in the last three months by 0.03% to 52,378K shares. The put/call ratio of FRME is 0.04, indicating a bullish outlook.
What are large shareholders doing?
Earnest Partners holds 2,589K shares representing 4.38% ownership of the company. In it's prior filing, the firm reported owning 2,616K shares, representing a decrease of 1.02%. The firm increased its portfolio allocation in FRME by 8.40% over the last quarter.
Cardinal Capital Management holds 2,359K shares representing 3.99% ownership of the company. In it's prior filing, the firm reported owning 2,264K shares, representing an increase of 4.03%. The firm increased its portfolio allocation in FRME by 27.22% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,762K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 1,739K shares, representing an increase of 1.31%. The firm increased its portfolio allocation in FRME by 14.70% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 1,511K shares representing 2.55% ownership of the company. In it's prior filing, the firm reported owning 1,500K shares, representing an increase of 0.68%. The firm increased its portfolio allocation in FRME by 14.01% over the last quarter.
IWM - iShares Russell 2000 ETF holds 1,242K shares representing 2.10% ownership of the company. In it's prior filing, the firm reported owning 1,309K shares, representing a decrease of 5.37%. The firm increased its portfolio allocation in FRME by 11.61% 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.
This story originally appeared on Fintel.