First Merchants Stock Alpha and Beta Analysis
| FRMEP Stock | USD 25.53 0.18 0.71% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as First Merchants. It also helps investors analyze the systematic and unsystematic risks associated with investing in First Merchants over a specified time horizon. Remember, high First Merchants' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to First Merchants' market risk premium analysis include:
Beta 0.0191 | Alpha 0.0425 | Risk 0.59 | Sharpe Ratio 0.0878 | Expected Return 0.0516 |
Enterprise Value |
|
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
First |
First Merchants Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. First Merchants market risk premium is the additional return an investor will receive from holding First Merchants long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in First Merchants. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate First Merchants' performance over market.| α | 0.04 | β | 0.02 |
First Merchants expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of First Merchants' Buy-and-hold return. Our buy-and-hold chart shows how First Merchants performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.First Merchants Market Price Analysis
Market price analysis indicators help investors to evaluate how First Merchants stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading First Merchants shares will generate the highest return on investment. By understating and applying First Merchants stock market price indicators, traders can identify First Merchants position entry and exit signals to maximize returns.
First Merchants Return and Market Media
The median price of First Merchants for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 25.05 with a coefficient of variation of 1.53. The daily time series for the period is distributed with a sample standard deviation of 0.39, arithmetic mean of 25.17, and mean deviation of 0.32. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Acquisition by Sondhi Jason R of 802 shares of First Merchants at 28.23 subject to Rule 16b-3 | 09/17/2024 |
2 | Dimensional Fund Advisors LP Acquires 180,323 Shares of First Merchants Co. - MarketBeat | 09/24/2024 |
3 | Acquisition by Fehring Patrick J. of 611 shares of First Merchants at 37.08 subject to Rule 16b-3 | 10/16/2024 |
4 | Acquisition by Fisher Michael J of 663 shares of First Merchants at 32.95 subject to Rule 16b-3 | 10/17/2024 |
5 | First Merchants Corporation Announces Third Quarter 2024 Earnings per Share FRME Stock News - StockTitan | 10/24/2024 |
6 | First Merchants Declares 0.35 Dividend, Maintains Steady Shareholder Returns FRME Stock News - StockTitan | 11/13/2024 |
| First Merchants dividend paid on 15th of November 2024 | 11/15/2024 |
About First Merchants Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including First or other stocks. Alpha measures the amount that position in First Merchants has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0272 | 0.0313 | 0.0373 | 0.0353 | Price To Sales Ratio | 4.33 | 3.78 | 3.36 | 2.73 |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards First Merchants in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, First Merchants' short interest history, or implied volatility extrapolated from First Merchants options trading.
Build Portfolio with First Merchants
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Additional Tools for First Stock Analysis
When running First Merchants' price analysis, check to measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.