Patrick J. Fehring, a director at First Merchants Corp (NASDAQ:FRME), recently sold 26,437 shares of the company's common stock. The transaction, which took place on November 8, 2024, was executed at a price of $43.01 per share, resulting in a total sale value of approximately $1.14 million. Following this sale, Fehring holds 91,262 shares indirectly through the Patrick J Fehring Trust. Additionally, Fehring's spouse owns 20,605 shares, and there are 6,296 restricted stock awards included in his direct holdings.
In other recent news, First Merchants Corporation reported robust earnings results for the third quarter of 2024, with total assets rising to $18.3 billion and earnings per share (EPS) increasing to $0.84, or $0.95 when adjusted for securities sale losses. The imminent sale of five non-core Illinois branches is projected to bring a gain of $20 million to $25 million, assisting with balance sheet restructuring. Piper Sandler adjusted its outlook on First Merchants, reducing the price target from $50.00 to $47.00, while maintaining an Overweight rating on the stock, predicting mid-single-digit organic loan growth by 2025. The firm also expressed confidence in the bank's future credit quality and commended First Merchants for its strong cost management and accumulating excess capital, which could enable increased shareholder returns or strategic acquisitions. First Merchants' operating earnings per share are projected to remain at $0.89 for the fourth quarter of 2024, and are set at $3.60 for 2025, with a new estimate of $3.80 for 2026. The company is optimistic about organic growth in 2025, with a plan for continued loan growth, particularly in the commercial and industrial and investment real estate segments. Acquisitions, particularly in Indiana, Iowa, and Michigan, are also part of First Merchants' growth strategy.
InvestingPro Insights
The recent stock sale by Patrick J. Fehring comes at a time when First Merchants Corp (NASDAQ:FRME) is experiencing strong market performance. According to InvestingPro data, the company's stock has shown impressive returns, with a 53.44% price total return over the past year and a 19.27% return in the last three months. This robust performance is further underscored by the fact that FRME is currently trading near its 52-week high, with the price at 98.67% of its highest point over the past year.
Despite the recent insider sale, First Merchants Corp maintains a solid financial position. The company boasts a P/E ratio of 14.25, which is relatively attractive compared to industry averages. Additionally, FRME has demonstrated a commitment to shareholder returns, with a dividend yield of 3.28% and a history of raising its dividend for 12 consecutive years, as noted in one of the InvestingPro Tips.
It's worth mentioning that while revenue growth has been negative in the last twelve months (-10.89%), the company maintains a strong operating income margin of 39.14%. This suggests that First Merchants Corp is managing its expenses effectively even in the face of revenue challenges.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, including 11 more tips that could provide valuable context for FRME's current market position and future prospects.
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