First Merchants Co. (NASDAQ:FRME) Plans Dividend Increase – $0.35 Per Share

First Merchants Co. (NASDAQ:FRME) declared a quarterly dividend on Wednesday, May 8th, Zacks reports. Investors of record on Friday, June 7th will be paid a dividend of 0.35 per share by the bank on Friday, June 21st. This represents a $1.40 dividend on an annualized basis and a yield of 3.91%. The ex-dividend date of this dividend is Friday, June 7th. This is an increase from First Merchants’s previous quarterly dividend of $0.34.

First Merchants has increased its dividend payment by an average of 8.8% per year over the last three years and has increased its dividend every year for the last 12 years. First Merchants has a payout ratio of 39.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect First Merchants to earn $3.49 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 39.0%.

First Merchants Stock Up 0.4 %

Shares of NASDAQ:FRME traded up $0.16 on Thursday, reaching $35.81. The company had a trading volume of 85,108 shares, compared to its average volume of 257,446. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $2.10 billion, a PE ratio of 10.29 and a beta of 1.08. First Merchants has a 52-week low of $24.52 and a 52-week high of $38.16. The firm’s 50 day simple moving average is $33.89 and its 200-day simple moving average is $33.49.

Insiders Place Their Bets

In related news, insider Stephan Fluhler sold 3,193 shares of the company’s stock in a transaction on Wednesday, February 28th. The stock was sold at an average price of $33.17, for a total value of $105,911.81. Following the transaction, the insider now directly owns 24,070 shares of the company’s stock, valued at approximately $798,401.90. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 1.40% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Piper Sandler boosted their target price on shares of First Merchants from $41.00 to $42.50 and gave the stock an “overweight” rating in a report on Monday, April 29th. Raymond James increased their target price on shares of First Merchants from $33.00 to $40.00 and gave the company an “outperform” rating in a research report on Monday, January 29th. Finally, StockNews.com raised shares of First Merchants from a “sell” rating to a “hold” rating in a report on Thursday, May 2nd.

About First Merchants

First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. The company offers a range of financial services, including time, savings, and demand deposits; and consumer, commercial, agri-business, public finance, and real estate mortgage loans.