First Merchants (NASDAQ:FRME) Stock

First Merchants

First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment which is community banking.

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OSBC

Old Second Bancorp, Inc. (NASDAQ: OSBC) signed an agreement with First Merchants Corp. (NASDAQ: FRME) to acquire five Illinois branches alongside certain branch-specific loans and deposits.

Old Second Bancorp to Acquire First Merchants&#39; 5 Branches in Illinois

First Merchants Corporation - Common Stock

First Merchants Corp

First Merchants Corporation - Depository Shares, each representing a 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, A

First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $51.75, a high estimate of $55.00, and a low estimate of $50.00. Observing a 10.7% increase, the current average has risen from the previous average price target of $46.75. 
<img src="https://www.benzinga.com/files/images/story/2025/1738350037_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive First Merchants is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Damon Delmonte</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$52.00</td>
<td>$50.00</td>
</tr>
<tr>
<td>Daniel Tamayo</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Outperform</td>
<td>$50.00</td>
<td>$42.00</td>
</tr>
<tr>
<td>Nathan Race</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Overweight</td>
<td>$55.00</td>
<td>$52.00</td>
</tr>
<tr>
<td>Damon Delmonte</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$50.00</td>
<td>$43.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to First Merchants. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of First Merchants compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of First Merchants's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of First Merchants's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/FRME/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on First Merchants analyst ratings.</a>
<h2>About First Merchants</h2>
First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment which is community banking.
<h3>First Merchants: A Financial Overview</h3>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: First Merchants's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -3.26%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: First Merchants's net margin excels beyond industry benchmarks, reaching 31.23%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): First Merchants's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.18%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): First Merchants's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.27%, the company may face hurdles in achieving optimal financial returns.
Debt Management: First Merchants's debt-to-equity ratio surpasses industry norms, standing at 0.41. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

4 Analysts Have This To Say About First Merchants

Keefe, Bruyette &amp; Woods analyst Damon Delmonte maintains First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) with a Outperform and raises the price target from $50 to $52.

Price Target

Keefe, Bruyette & Woods Maintains Outperform on First Merchants, Raises Price Target to $52

Raymond James analyst Daniel Tamayo reiterates First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) with a Outperform and raises the price target from $42 to $50.

Reiteration

Raymond James Reiterates Outperform on First Merchants, Raises Price Target to $50

WIIM

First Merchants shares are trading higher after Piper Sandler raised its price target on the stock from $52 to $55.

Piper Sandler analyst Nathan Race reiterates First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) with a Overweight and raises the price target from $52 to $55.

Piper Sandler Reiterates Overweight on First Merchants, Raises Price Target to $55

The Q4 earnings report for First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) was released on Thursday, January 30, 2025 at 08:01 AM.
Here's what investors need to know about the latest announcement.
<h3>Earnings</h3>
First Merchants beat estimated earnings by 11.0%, reporting an EPS of $1.0 versus an estimate of $0.9.
Revenue was up $20.61 million from the same period last year.
<h3>Performance in Previous Earnings</h3>
Last quarter the company beat on EPS by $0.05 which was followed by a 1.0% drop in the share price the next day.
Here's a look at First Merchants's past performance:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q3 2024</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.90</td>
<td>0.80</td>
<td>0.82</td>
<td>0.87</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.95</td>
<td>0.68</td>
<td>0.85</td>
<td>0.87</td>
</tr>
<tr>
<td>Revenue Estimate</td>
<td>166.33M</td>
<td>160.51M</td>
<td>162.70M</td>
<td>165.48M</td>
</tr>
<tr>
<td>Revenue Actual</td>
<td>155.98M</td>
<td>159.91M</td>
<td>153.70M</td>
<td>156.51M</td>
</tr>
</tbody>
</table>

To track all earnings releases for First Merchants <a href="https://www.benzinga.com/quote/FRME/earnings">visit their earnings calendar here.</a> 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

Insights into First Merchants Q4 Earnings

First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) reported quarterly earnings of $1.00 per share which beat the analyst consensus estimate of $0.90 by 11.11 percent. This is a 14.94 percent increase over earnings of $0.87 per share from the same period last year. The company reported quarterly sales of $177.11 million which beat the analyst consensus estimate of $167.84 million by 5.52 percent. This is a 13.17 percent increase over sales of $156.51 million the same period last year.

Earnings Beats

First Merchants Q4 Adj EPS $1.00 Beats $0.90 Estimate, Sales $177.11M Beat $167.84M Estimate

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Earnings Scheduled For January 30, 2025

Keefe, Bruyette &amp; Woods analyst Damon Delmonte maintains First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) with a Outperform and raises the price target from $43 to $50.

Keefe, Bruyette & Woods Maintains Outperform on First Merchants, Raises Price Target to $50

U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Monday.
Shares of Zscaler Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>) fell sharply in today's pre-market trading following <a href="https://www.benzinga.com/news/earnings/24/12/42277443/zscaler-q1-earnings-revenue-beat-eps-beat-new-ai-opportunities-shares-slide">first-quarter results</a>.
Zscaler reported first-quarter revenue of $628 million, beating the consensus estimate of $606.19 million. The cybersecurity company reported adjusted earnings of 77 cents per share, beating analyst estimates of 63 cents per share, according to Benzinga Pro.
Zscaler expects fiscal second-quarter revenue to be in the range of $633 million to $635 million versus estimates of $633.84 million. The company anticipates second-quarter adjusted earnings of 68 cents to 69 cents per share versus estimates of 69 cents per share.
Zscaler shares dipped 7.4% to $192.95 in the pre-market trading session.
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<li>Logistic Properties of the Americas (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPA#NYSE">LPA</a>) fell 18.3% to $10.70 in pre-market trading after jumping 77% on Monday.</li>
<li>First Merchants Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) shares dipped 16.6% to $36.40 in pre-market trading.</li>
<li>indie Semiconductor, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INDI#NASDAQ">INDI</a>) shares declined 14% to $4.54 in pre-market trading after the company announced plans to offer $175 million in convertible senior notes due 2029.</li>
<li>United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) shares declined 8.4% to $37.50 in pre-market trading.</li>
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<li>Afya Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFYA#NASDAQ">AFYA</a>) shares fell 4.5% to $15.85 in pre-market trading.</li>
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Zscaler, TransMedics Group And Other Big Stocks Moving Lower In Tuesday's Pre-Market Session

Shares of Credo Technology Group Holding Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>) rose sharply in today's pre-market trading after the company reported better-than-expected second-quarter financial results issued guidance that <a href="https://www.benzinga.com/quote/CRDO/earnings">was above estimates</a>.
Credo Technology Group shares jumped 40.2% to $67.00 in the pre-market trading session.
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<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Cheetah Net Supply Chain Service Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTNT#NASDAQ">CTNT</a>) gained 157% to $4.83 in pre-market trading. Cheetah Net Supply Chain Service expanded operations with acquisition of TW &amp; EW Services.</li>
<li>Volato Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOAR#NYSE">SOAR</a>) rose 82.2% to $0.4042 in pre-market trading after dipping 15% on Monday.</li>
<li>Janux Therapeutics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JANX#NASDAQ">JANX</a>) gained 66.3% to $66.82 in pre-market trading after it announced doses selected for its phase 1b expansion trials.</li>
<li>Citius Oncology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTOR#NASDAQ">CTOR</a>) gained 60.8% to $1.64 in pre-market trading.</li>
<li>Shimmick Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHIM#NASDAQ">SHIM</a>) gained 30.7% to $3.66 in pre-market trading after the company announced a $4.5 million contract to complete seismic retrofitting and improvements to the Murray street bridge.</li>
<li>Serina Therapeutics, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SER#NYSE">SER</a>) gained 23.2% to $5.85 in pre-market trading as the company revealed a $10 million equity financing with strategic shareholder JuvVentures (UK) Limited.</li>
<li>Universe Pharmaceuticals INC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPC#NASDAQ">UPC</a>) gained 23.2% to $2.38 in pre-market trading after gaining 8% on Monday.</li>
<li>Nauticus Robotics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KITT#NASDAQ">KITT</a>) rose 18.8% to $1.33 in pre-market trading after the company announced it completed an Aquanaut Mark 2 Evaluation Agreement with a Global Supermajor Oil &amp; Gas customer.</li>
<li>Vir Biotechnology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIR#NASDAQ">VIR</a>) gained 14.8% to $9.36 in pre-market trading.</li>
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<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>Ocean Power Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPTT#NASDAQ">OPTT</a>) shares tumbled 40% to $0.4202 in pre-market trading after the company released preliminary financial results for second quarter fiscal 2025.</li>
<li>Gelteq Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GELS#NASDAQ">GELS</a>) shares fell 22.6% to $2.94 in pre-market trading. Gelteq shares jumped 93% on Monday after the company announced Healthy Extracts, its largest customer, increased its initial purchase order of Gelteq collagen and Mynus sugar blocker gels by 50%.</li>
<li>Aptorum Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APM#NASDAQ">APM</a>) fell 18.8% to $0.7002 in pre-market trading after jumping 24% on Monday.</li>
<li>Logistic Properties of the Americas (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPA#NYSE">LPA</a>) fell 18.3% to $10.70 in pre-market trading after jumping 77% on Monday.</li>
<li>Odyssey Marine Exploration, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OMEX#NASDAQ">OMEX</a>) shares fell 18% to $0.6111 in pre-market trading after gaining over 60% on Monday.</li>
<li>The Lion Electric Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEV#NYSE">LEV</a>) declined 17.2% to $0.2377 in pre-market trading after gaining 55% on Monday.</li>
<li>Safe &amp; Green Holdings Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGBX#NASDAQ">SGBX</a>) fell 16.7% to $0.5694 in pre-market trading after gaining around 40% on Monday.</li>
<li>First Merchants Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) shares dipped 16.6% to $36.40 in pre-market trading.</li>
<li>Meiwu Technology Company Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WNW#NASDAQ">WNW</a>) fell 12.2% to $0.8601 in today's pre-market trading.</li>
<li>Zscaler Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>) dipped 7.4% to $192.95 in pre-market trading following first-quarter results.</li>
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</ul>

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Shares of banking-related companies are trading higher after Donald Trump won the US presidential election.

Piper Sandler analyst Nathan Race maintains First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) with a Overweight and lowers the price target from $50 to $47.

Piper Sandler Maintains Overweight on First Merchants, Lowers Price Target to $47

First Merchants shares are trading lower after the company reported worse-than-expected Q3 revenue results.

First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) reported quarterly earnings of $0.95 per share which beat the analyst consensus estimate of $0.90 by 5.56 percent. The company reported quarterly sales of $155.976 million which missed the analyst consensus estimate of $166.335 million by 6.23 percent. This is a 3.26 percent decrease over sales of $161.225 million the same period last year.

Earnings Misses

First Merchants Q3 2024 Adj. EPS $0.95 Beats $0.90 Estimate, Sales $155.976M Miss $166.335M Estimate

Old Second Bancorp, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/osbc#NASDAQ">OSBC</a>) signed an agreement with First Merchants Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/frme#NASDAQ">FRME</a>) to acquire five Illinois branches alongside certain branch-specific loans and deposits. These branches are located in Southeast Chicago MSA.
<h2>Details of the Acquisition by Old Second Bancorp</h2>
OSBC will pay a total cash consideration of roughly $23 million, equivalent to a 7.5% deposit premium to First Merchants. The company expects to assume roughly $304 million in deposits and almost $12 million in loans associated with these branches.
The deal is expected to be completed by 2024-end, subject to regulatory approvals. Until then, these five branches will continue to operate under First Merchants&#39; name. These will be rebranded as Old Second Bancorp&#39;s branches immediately upon closure of the transaction.
<h2>OSBC&#39;s Strategic Rationale Behind the Deal</h2>
The acquisition is expected to strengthen OSBC&#39;s status as one of the largest banks headquartered in Chicagoland and significantly expand its existing branch network, specifically in the Southeast Chicago market.
For First Merchants, this divestiture completes its branch exit from suburban Chicago markets.
This move aligns with Old Second Bancorp&#39;s inorganic growth strategy to deepen its presence in the Illinois market. In December 2021, the company acquired West Suburban Bancorp, Inc. to enhance its presence in the west suburban Chicago area. The deal comprised the buyout of 34 branches with a retail and commercial client mix of loans and deposits.
<h2>Zacks Rank &amp; Price Performance</h2>
Year to date, shares of Old Second Bancorp have risen 7.3% compared with the industry&#39;s 14% growth.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/d3/75770.jpg?v=1648470476" />
Image Source: Zacks Investment Research
Currently, OSBC carries a Zacks Rank #4 (Sell).&nbsp;
<h2>Similar Steps by Other Financial Services Firms</h2>
Earlier this month, State Street Corporation&#39;s asset management unit, State Street Global Advisors, announced an investment in a leading Australian fintech platform, Raiz Invest Limited. As part of the equity investment agreement, State Street Global Advisors will acquire 5% of Raiz&#39;s share capital through a placement.
Through this partnership, State Street Global Advisors&#39; trusted brand and deep knowledge of markets will come together with Raiz&#39;s mobile-first platform, which will help retail investors in Australia with micro-investments primarily in exchange-traded funds and model portfolios.
U.S. Bancorp&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/usb#NYSE">USB</a>) lead banking division, U.S. Bank, expanded its focus on the healthcare industry with the acquisition of Salucro Healthcare Solutions LLC. The buyout was completed on Aug. 21, 2024. The financial terms of the deal were kept under wraps.
Based in Tempe, AZ, Salucro is a provider of healthcare financial technology with a primary focus on patient payments and billing. Previously, Salucro had been a partner of Elavon, a subsidiary of U.S. Bank. In 2022, U.S. Bank made its initial investment in Salucro, and its platform was sold through Elavon as MedEpay.
The acquisition of Salucro extends U.S. Bank&#39;s more than a century of service to healthcare-focused clientele. Following the acquisition, Salucro&#39;s employees have now become part of U.S. Bank and will be integrated into Elavon, one of the largest global payments processing firms.
<a href="https://www.zacks.com/stock/news/2328487/old-second-bancorp-to-acquire-first-merchants-5-branches-in-illinois?cid=CS-BENZ-FT-analyst_blog|company_news_finance_sector-2328487">To read this article on Zacks.com click here.</a>

Old Second Bancorp to Acquire First Merchants' 5 Branches in Illinois

In the preceding three months, 4 analysts have released ratings for First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $46.25, a high estimate of $50.00, and a low estimate of $45.00. This current average reflects an increase of 9.47% from the previous average price target of $42.25. 
<img src="https://www.benzinga.com/files/images/story/2024/1724860827_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
A comprehensive examination of how financial experts perceive First Merchants is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Damon Delmonte</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$45.00</td>
<td>$45.00</td>
</tr>
<tr>
<td>Damon Delmonte</td>
<td>Keefe, Bruyette &amp; Woods</td>
<td>Raises</td>
<td>Outperform</td>
<td>$45.00</td>
<td>$43.00</td>
</tr>
<tr>
<td>Nathan Race</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Overweight</td>
<td>$50.00</td>
<td>$41.00</td>
</tr>
<tr>
<td>Terry McEvoy</td>
<td>Stephens &amp; Co.</td>
<td>Raises</td>
<td>Overweight</td>
<td>$45.00</td>
<td>$40.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to First Merchants. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of First Merchants compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of First Merchants's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
For valuable insights into First Merchants's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/FRME/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on First Merchants analyst ratings.</a>
<h2>All You Need to Know About First Merchants</h2>
First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment which is community banking.
<h3>First Merchants: A Financial Overview</h3>
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Challenges: First Merchants's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -2.59%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: First Merchants's net margin excels beyond industry benchmarks, reaching 24.67%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): First Merchants's ROE stands out, surpassing industry averages. With an impressive ROE of 1.8%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): First Merchants's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.22% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: First Merchants's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.42, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
<h2>How Are Analyst Ratings Determined?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Critical Insights From First Merchants Analyst Ratings: What You Need To Know

Keefe, Bruyette &amp; Woods analyst Damon Delmonte maintains First Merchants (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRME#NASDAQ">FRME</a>) with a Outperform and maintains $45 price target.

Keefe, Bruyette & Woods Maintains Outperform on First Merchants, Maintains $45 Price Target

Old Second National Bank Acquires 5 Illinois Branches from First Merchants Bank _____________
Proposed Acquisition to Add $304 Million in Deposits and $12 million in loans

Old Second Bancorp And First Merchants Corporation Announce Transaction Involving Chicagoland Branch Operations;  Old Second Will Purchase 5 Illinois Branch Locations; Old Second Assumes ~$304M In Deposits And Purchasing ~$12M In Brand-Related Loans; Old Second To Pay ~$23M

BANC

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Shares of banking companies are trading higher amid overall market strength following Fed Chair Powell's comments about the economy and future rate cuts.

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