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How to buy First Merchants Corporation stock | $36.33

Own First Merchants Corporation stock in just a few minutes.

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First Merchants Corporation is a banks-regional business based in the US. First Merchants Corporation shares (FRME) are listed on the NASDAQ and all prices are listed in US Dollars. First Merchants Corporation employs 1,891 staff and has a trailing 12-month revenue of around USD$429.4 million.

How to buy shares in First Merchants Corporation

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for First Merchants Corporation. Find the stock by name or ticker symbol: FRME. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until First Merchants Corporation reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$36.33, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of First Merchants Corporation, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of First Merchants Corporation. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

First Merchants Corporation share price

Use our graph to track the performance of FRME stocks over time.

First Merchants Corporation shares at a glance

Information last updated 2020-12-27.
Latest market closeUSD$36.33
52-week rangeUSD$20.6189 - USD$40.7756
50-day moving average USD$34.3603
200-day moving average USD$27.651
Wall St. target priceUSD$36.8
PE ratio 13.2661
Dividend yield USD$1.04 (2.82%)
Earnings per share (TTM) USD$2.777

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy First Merchants Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

First Merchants Corporation price performance over time

Historical closes compared with the close of $36.33 from 2020-12-18

1 week (2021-01-08) -9.40%
1 month (2020-12-16) -2.21%
3 months (2020-10-15) 45.96%
6 months (2020-07-15) 40.60%
1 year (2020-01-15) -11.76%
2 years (2019-01-15) -1.38%
3 years (2018-01-12) 44.2
5 years (2016-01-15) 60.82%

Is First Merchants Corporation under- or over-valued?

Valuing First Merchants Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of First Merchants Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

First Merchants Corporation's P/E ratio

First Merchants Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, First Merchants Corporation shares trade at around 13x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

First Merchants Corporation's PEG ratio

First Merchants Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.68. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into First Merchants Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

First Merchants Corporation financials

Revenue TTM USD$429.4 million
Operating margin TTM 43.72%
Gross profit TTM USD$440.5 million
Return on assets TTM 1.16%
Return on equity TTM 8.45%
Profit margin 35.23%
Book value $34.022
Market capitalisation USD$2 billion

TTM: trailing 12 months

Shorting First Merchants Corporation shares

There are currently 819,909 First Merchants Corporation shares held short by investors – that's known as First Merchants Corporation's "short interest". This figure is 52.5% up from 537,494 last month.

There are a few different ways that this level of interest in shorting First Merchants Corporation shares can be evaluated.

First Merchants Corporation's "short interest ratio" (SIR)

First Merchants Corporation's "short interest ratio" (SIR) is the quantity of First Merchants Corporation shares currently shorted divided by the average quantity of First Merchants Corporation shares traded daily (recently around 223408.44686649). First Merchants Corporation's SIR currently stands at 3.67. In other words for every 100,000 First Merchants Corporation shares traded daily on the market, roughly 3670 shares are currently held short.

However First Merchants Corporation's short interest can also be evaluated against the total number of First Merchants Corporation shares, or, against the total number of tradable First Merchants Corporation shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case First Merchants Corporation's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 First Merchants Corporation shares in existence, roughly 10 shares are currently held short) or 0.014% of the tradable shares (for every 100,000 tradable First Merchants Corporation shares, roughly 14 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against First Merchants Corporation.

Find out more about how you can short First Merchants Corporation stock.

First Merchants Corporation share dividends

37%

Dividend payout ratio: 37.01% of net profits

Recently First Merchants Corporation has paid out, on average, around 37.01% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.82% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), First Merchants Corporation shareholders could enjoy a 2.82% return on their shares, in the form of dividend payments. In First Merchants Corporation's case, that would currently equate to about $1.04 per share.

While First Merchants Corporation's payout ratio might seem fairly standard, it's worth remembering that First Merchants Corporation may be investing much of the rest of its net profits in future growth.

First Merchants Corporation's most recent dividend payout was on 18 December 2020. The latest dividend was paid out to all shareholders who bought their shares by 3 December 2020 (the "ex-dividend date").

Have First Merchants Corporation's shares ever split?

First Merchants Corporation's shares were split on a 105:100 basis on 27 August 2003. So if you had owned 100 shares the day before before the split, the next day you'd have owned 105 shares. This wouldn't directly have changed the overall worth of your First Merchants Corporation shares – just the quantity. However, indirectly, the new 4.8% lower share price could have impacted the market appetite for First Merchants Corporation shares which in turn could have impacted First Merchants Corporation's share price.

First Merchants Corporation share price volatility

Over the last 12 months, First Merchants Corporation's shares have ranged in value from as little as $20.6189 up to $40.7756. A popular way to gauge a stock's volatility is its "beta".

FRME.US volatility(beta: 1.33)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while First Merchants Corporation's is 1.3302. This would suggest that First Merchants Corporation's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

First Merchants Corporation overview

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. It accepts time, savings, and demand deposits; and provides consumer, commercial, agri-business, and real estate mortgage loans. The company also offers personal and corporate trust; brokerage and private wealth management; and letters of credit, repurchase agreements, and other corporate services. It operates 128 banking locations in thirty Indiana, two Illinois, two Ohio, and two Michigan counties. The company offers its services through electronic and mobile delivery channels. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana.

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