First Merchants Stock Buy Hold or Sell Recommendation
| FRME Stock | USD 44.97 0.92 2.09% |
Given the investment horizon of 90 days and your slightly conservative level of risk, our recommendation regarding First Merchants is 'Hold'. Macroaxis provides First Merchants buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FRME positions.
Check out First Merchants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade First Stock refer to our How to Trade First Stock guide. Note, we conduct extensive research on individual companies such as First and provide practical buy, sell, or hold advice based on investors' constraints. First Merchants. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population.
First |
Execute First Merchants Buy or Sell Advice
The First recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on First Merchants. Macroaxis does not own or have any residual interests in First Merchants or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute First Merchants' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
First Merchants Trading Alerts and Improvement Suggestions
| First Merchants has a poor financial position based on the latest SEC disclosures | |
| Over 76.0% of the company shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: First Merchants Sets New 12-Month High Whats Next |
First Merchants Returns Distribution Density
The distribution of First Merchants' historical returns is an attempt to chart the uncertainty of First Merchants' future price movements. The chart of the probability distribution of First Merchants daily returns describes the distribution of returns around its average expected value. We use First Merchants price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of First Merchants returns is essential to provide solid investment advice for First Merchants.
| Mean Return | 0.28 | Value At Risk | -3.25 | Potential Upside | 3.54 | Standard Deviation | 2.57 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of First Merchants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
First Stock Institutional Investors
| Shares | Nuveen Asset Management, Llc | 2024-06-30 | 764.1 K | Charles Schwab Investment Management Inc | 2024-09-30 | 722.1 K | Boston Partners Global Investors, Inc | 2024-09-30 | 721.5 K | Jpmorgan Chase & Co | 2024-06-30 | 705.3 K | Public Employees Retirt Assn Of Colorado | 2024-06-30 | 695.8 K | Pl Capital Advisors, Llc | 2024-09-30 | 686.3 K | Systematic Financial Management Lp | 2024-09-30 | 682.7 K | Northern Trust Corp | 2024-09-30 | 641.1 K | First Merchants Corp | 2024-09-30 | 562.7 K | Vanguard Group Inc | 2024-09-30 | 6.2 M | Blackrock Inc | 2024-06-30 | 4.8 M |
First Merchants Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 38.0M | 15.7M | (25.8M) | (44.6M) | (9.9M) | (9.4M) | |
| Free Cash Flow | (134.0M) | 204.8M | 143.1M | 268.0M | 258.8M | 271.8M | |
| Depreciation | 9.4M | 11.0M | 10.7M | 11.8M | 11.7M | 12.3M | |
| Other Non Cash Items | 3.6M | 63.9M | (12.0M) | 42.6M | 16.0M | 14.0M | |
| Dividends Paid | 51.3M | 56.5M | 61.2M | 74.2M | 81.9M | 86.0M | |
| Net Income | 164.5M | 148.6M | 205.5M | 222.1M | 223.8M | 235.0M | |
| End Period Cash Flow | 177.2M | 192.9M | 167.1M | 122.6M | 112.6M | 116.4M | |
| Investments | (1.0B) | (1.6B) | (1.5B) | (595.8M) | (275.6M) | (289.4M) | |
| Change Receivables | (4.7M) | (5.0M) | (3.2M) | (20.7M) | (18.6M) | (17.7M) | |
| Net Borrowings | (43.9M) | (47.8M) | (50.7M) | 485.5M | 558.3M | 586.2M | |
| Change To Netincome | 18.8M | 81.5M | 19.0M | (199.7M) | (179.8M) | (170.8M) |
First Merchants Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to First Merchants or Banks sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that First Merchants' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a First stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.01 | |
β | Beta against Dow Jones | 2.41 | |
σ | Overall volatility | 2.62 | |
Ir | Information ratio | 0.06 |
First Merchants Volatility Alert
First Merchants has relatively low volatility with skewness of 3.37 and kurtosis of 19.96. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure First Merchants' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact First Merchants' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.First Merchants Fundamentals Vs Peers
Comparing First Merchants' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze First Merchants' direct or indirect competition across all of the common fundamentals between First Merchants and the related equities. This way, we can detect undervalued stocks with similar characteristics as First Merchants or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of First Merchants' fundamental indicators could also be used in its relative valuation, which is a method of valuing First Merchants by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare First Merchants to competition |
| Fundamentals | First Merchants | Peer Average |
| Return On Equity | 0.0817 | -0.31 |
| Return On Asset | 0.0099 | -0.14 |
| Profit Margin | 0.30 % | (1.27) % |
| Operating Margin | 0.42 % | (5.51) % |
| Current Valuation | 3.25 B | 16.62 B |
| Shares Outstanding | 58.67 M | 571.82 M |
| Shares Owned By Insiders | 1.56 % | 10.09 % |
| Shares Owned By Institutions | 75.51 % | 39.21 % |
| Number Of Shares Shorted | 469.91 K | 4.71 M |
| Price To Earning | 14.38 X | 28.72 X |
| Price To Book | 1.13 X | 9.51 X |
| Price To Sales | 4.45 X | 11.42 X |
| Revenue | 654.31 M | 9.43 B |
| Gross Profit | 611.39 M | 27.38 B |
| EBITDA | 270.94 M | 3.9 B |
| Net Income | 223.79 M | 570.98 M |
| Cash And Equivalents | 299.12 M | 2.7 B |
| Cash Per Share | 5.06 X | 5.01 X |
| Total Debt | 871.5 M | 5.32 B |
| Debt To Equity | 6.95 % | 48.70 % |
| Book Value Per Share | 39.18 X | 1.93 K |
| Cash Flow From Operations | 258.83 M | 971.22 M |
| Short Ratio | 1.74 X | 4.00 X |
| Earnings Per Share | 3.01 X | 3.12 X |
| Price To Earnings To Growth | 2.68 X | 4.89 X |
| Target Price | 44.0 | |
| Number Of Employees | 2.16 K | 18.84 K |
| Beta | 1.02 | -0.15 |
| Market Capitalization | 2.64 B | 19.03 B |
| Total Asset | 18.41 B | 29.47 B |
| Retained Earnings | 1.15 B | 9.33 B |
| Annual Yield | 0.03 % | |
| Five Year Return | 2.58 % |
Note: Acquisition by Wojtowicz Jean L of 840 shares of First Merchants at 37.2 subject to Rule 16b-3 [view details]
First Merchants Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as First . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About First Merchants Buy or Sell Advice
When is the right time to buy or sell First Merchants? Buying financial instruments such as First Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having First Merchants in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies producing and selling home and office furniture. The Furniture theme has 42 constituents at this time.
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Check out First Merchants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade First Stock refer to our How to Trade First Stock guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Merchants. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.11) | Dividend Share 1.38 | Earnings Share 3.01 | Revenue Per Share 10.11 | Quarterly Revenue Growth (0.05) |
The market value of First Merchants is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Merchants' value that differs from its market value or its book value, called intrinsic value, which is First Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Merchants' market value can be influenced by many factors that don't directly affect First Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine if First Merchants is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.