Latest news with #FirstMerchants
Yahoo
16 hours ago
- Business
- Yahoo
3 Reasons FRME is Risky and 1 Stock to Buy Instead
Over the past six months, First Merchants's stock price fell to $35.72. Shareholders have lost 11.5% of their capital, which is disappointing considering the S&P 500 has climbed by 1.9%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in First Merchants, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the more favorable entry price, we don't have much confidence in First Merchants. Here are three reasons why FRME doesn't excite us and a stock we'd rather own. We at StockStory place the most emphasis on long-term growth, but within financials, a stretched historical view may miss recent interest rate changes, market returns, and industry trends. First Merchants's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2% over the last two years. Net interest margin represents how much a bank earns in relation to its outstanding loans. It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services. Over the past two years, First Merchants's net interest margin averaged 3.2%. Its margin also contracted by 26.7 basis points (100 basis points = 1 percentage point) over that period. This decline was a headwind for its net interest income. While prevailing rates are a major determinant of net interest margin changes over time, the decline could mean First Merchants either faced competition for loans and deposits or experienced a negative mix shift in its balance sheet composition. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. First Merchants's EPS grew at an unimpressive 1.9% compounded annual growth rate over the last five years, lower than its 7% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. First Merchants isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 0.8× forward P/B (or $35.72 per share). Beauty is in the eye of the beholder, but we don't really see a big opportunity at the moment. We're pretty confident there are more exciting stocks to buy at the moment. We'd suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
25-05-2025
- Business
- Yahoo
Why First Merchants, Terreno Realty, And Evergy Are Winners For Passive Income
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. First Merchants, Terreno Realty, and Evergy have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of over 3%. First Merchants Corp. (NASDAQ:FRME) operates as the financial holding company for First Merchants Bank that provides community banking services. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – The company has increased its dividends every year for the last 13 years. In its most recent dividend announcement on May 16, the company's board raised the quarterly payout from $0.35 to $0.36 per share, equal to an annual figure of $1.44 per share. The current dividend yield is 3.66%. First Merchants' annual revenue as of March 31 stood at $633.33 million. In its Q1 2025 earnings release on April 24, the company posted revenues of $160.32 million, missing the consensus estimate of $170.91 million, while EPS of $0.94 came in above the consensus of $0.91. Check out this article by Benzinga for six analysts' insights on First Merchants. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Terreno Realty Corp. (NYSE:TRNO) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C. The company has increased its dividends consecutively for the last 13 years. In its most recent dividend hike announcement on Aug. 7, it raised the quarterly payout by 8.9% to $0.49 per share, which is equal to an annual figure of $1.96 per share. More recently, in its dividend announcement on May 7, the company maintained the payout at the same level. Currently, the dividend yield on the stock is 3.35%. Terreno Realty's annual revenue as of March 31 stood at $408.01 million. According to the company's Q1 2025 earnings announcement on May 7, it generated revenues of $110.42 million, above the consensus estimate of $109.03 million, while EPS of $0.62 missed the consensus of $ Inc. (NASDAQ:EVRG) engages in the generation, transmission, distribution, and sale of electricity in the U.S. Evergy has increased its dividends every year for the last seven years. In its most recent dividend hike announcement on Nov. 7, its board raised the quarterly payout by 4% to $0.6675 per share, equaling an annual figure of $2.67 per share. More recently, in its dividend announcement on May 8, the company maintained the payout at the same level. The current dividend yield is 3.98%. Evergy's annual revenue as of March 31 stood at $5.89 billion. As per its most recent earnings release on May 8, it posted Q1 2025 revenues of $1.38 billion, above the consensus estimate of $1.02 billion, while EPS of $0.54 missed the consensus of $0.67. First Merchants, Terreno Realty, and Evergy are good choices for investors seeking reliable passive income. Their dividend yields of over 3% and long history of consistent hikes make them attractive to income-focused investors. Check out this article by Benzinga for three more stocks offering high dividend yields. Read Next: Invest Where It Hurts — And Help Millions Heal: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article Why First Merchants, Terreno Realty, And Evergy Are Winners For Passive Income originally appeared on
Yahoo
21-05-2025
- Business
- Yahoo
First Merchants Corporation (FRME): A Bull Case Theory
We came across a bullish thesis on First Merchants Corporation (FRME) on Substack by Serhio MaxDividends. In this article, we will summarize the bulls' thesis on FRME. First Merchants Corporation (FRME)'s share was trading at $39.18 as of May 20th. FRME's trailing and forward P/E were 11.04 and 11.07 respectively according to Yahoo Finance. An aerial view of a bustling regional banking institution. First Merchants Corp. (FRME), a $2.16 billion regional bank headquartered in Muncie, Indiana, recently increased its quarterly dividend by 2.9% to $0.36 per share, reflecting a forward yield of 3.67%. In Q1 2025, the company reported net income of $54.9 million, or $0.94 EPS, up from $0.85 the previous year, supported by a growing loan book which expanded by $154.9 million (4.8% annualized). Total assets reached $18.4 billion despite a 1.6% decline in deposits, partly due to the sale of five Illinois branches. Net interest income was $130.3 million with a net interest margin of 3.22%. First Merchants also returned capital through $10 million in share repurchases and redeemed $30 million in subordinated debt. The bank maintains a strong CET1 capital ratio of 11.5% and an efficient cost structure with a 54.54% efficiency ratio. These results demonstrate solid financial health, consistent growth, and a shareholder-friendly approach, making First Merchants an attractive regional banking investment. Also, check out what we found about this Texas-based regional bank - Cullenost Bankers Inc. First Merchants Corporation (FRME) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held FRME at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of FRME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FRME but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
First Merchants Corporation (FRME): A Bull Case Theory
We came across a bullish thesis on First Merchants Corporation (FRME) on Substack by Serhio MaxDividends. In this article, we will summarize the bulls' thesis on FRME. First Merchants Corporation (FRME)'s share was trading at $39.18 as of May 20th. FRME's trailing and forward P/E were 11.04 and 11.07 respectively according to Yahoo Finance. An aerial view of a bustling regional banking institution. First Merchants Corp. (FRME), a $2.16 billion regional bank headquartered in Muncie, Indiana, recently increased its quarterly dividend by 2.9% to $0.36 per share, reflecting a forward yield of 3.67%. In Q1 2025, the company reported net income of $54.9 million, or $0.94 EPS, up from $0.85 the previous year, supported by a growing loan book which expanded by $154.9 million (4.8% annualized). Total assets reached $18.4 billion despite a 1.6% decline in deposits, partly due to the sale of five Illinois branches. Net interest income was $130.3 million with a net interest margin of 3.22%. First Merchants also returned capital through $10 million in share repurchases and redeemed $30 million in subordinated debt. The bank maintains a strong CET1 capital ratio of 11.5% and an efficient cost structure with a 54.54% efficiency ratio. These results demonstrate solid financial health, consistent growth, and a shareholder-friendly approach, making First Merchants an attractive regional banking investment. Also, check out what we found about this Texas-based regional bank - Cullenost Bankers Inc. First Merchants Corporation (FRME) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held FRME at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of FRME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FRME but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-03-2025
- Business
- Yahoo
TipRanks' ‘Perfect 10' Picks: 2 High-Scorers Grabbing Wall Street's Attention
How do you choose the right stocks? It's the million-dollar question – and every investor has their own answer. Easily identify stocks' risks and opportunities. Discover stocks' market position with detailed competitor analyses. Some chase rapid growth, others hunt for undervalued gems, and many swear by the steady stream of dividend payouts. You might prefer an active, hands-on strategy – buying low, selling high, and pivoting with the market's every move. Or maybe you're more of a long-game player, building your portfolio patiently and letting time do the heavy lifting. Whatever your style, one truth remains: success starts with picking the right stocks. There's no magic formula, no secret handshake – just data. Mountains of it. With thousands of stocks and millions of trades flying across the markets every day, the challenge isn't a lack of information – it's knowing what to look for, and how to cut through the noise. The Smart Score tool, developed by TipRanks, uses AI and natural language processing to do just that. The algorithm gathers and collates all of the market data – and then uses it to compare every stock to a set of factors that have been proven to predict future outperformance. Those comparisons are then converted into a simple score, a single digit on an intuitive 1-to-10 scale, with the 'Perfect 10s' showing stocks that investors should definitely give some greater scrutiny. We've opened up the Smart Score to look up two high-scorers that are grabbing attention from Wall Street's analysts and have earned the 'Perfect 10'. Let's take a closer look. First Merchants Corporation (FRME) The first 'Perfect 10' stock we'll look at is a banking company, First Merchants Corporation. This holding company is the parent of First Merchants Bank, and is based in Muncie, Indiana: First Merchants Bank has a strong presence as a regional bank in Indiana, Ohio, and Michigan, with 110 branch locations. The bank's services include personal banking, as well as wealth management. Personal banking services include checking and savings accounts, online and mobile banking, loan and credit services, and money transfers. On the wealth management side, the bank offers investment services, financial and estate planning, and retirement planning. Like many regional banks, First Merchants prides itself on offering a more personalized service. First Merchants has total assets of $18.3 billion, including $12.9 billion in loans on the books as of December 31, 2024. Over the course of 2024, the company's total loans grew by 2.9%, or $368.1 million in dollar terms. Looking at the most recent set of quarterly results, for 4Q24, we find that First Merchants had total revenues of $177.11 million, beating the forecast by $9.27 million and growing 13.2% year-over-year. At the bottom line, the company realized a net income of $64 million, with the quarterly EPS of $1.10 beating expectations by 15 cents per share. This stock has caught the attention of Piper Sandler analyst Nathan Race, who sees plenty of positives here. Race writes, 'We reiterate FRME as our 2025 top pick with additional outperformance expected this year driven by FRME's strong operating leverage outlook with both solid organic B/S and core fee income growth, at least NIM stability, minimal operating expense increases as well as likely benign credit quality. We view FRME's still discounted current valuation as an attractive entry point, and believe FRME's multiples will likely expand in-line with, if not above, peers. FRME's building excess capital flexibility may also support additional proactive returns to shareholders via buybacks… Overall, our recent discussion with mgmt. reinforced our conviction that FRME is among the best positioned to outperform this year.' Race quantifies his position on FRME with an Overweight (i.e., Buy) rating and a $55 price target that suggests a 35% gain in the next 12 months. (To watch Race's track record, click here) While there are only 4 recent analyst reviews on file for FRME, they are all positive – for a unanimous Strong Buy consensus rating. The stock is currently trading for $40.84 and its $51.75 price target implies a one-year upside potential of 27%. (See FRME stock forecast) Full Truck Alliance (YMM) Next up on our look at 'Perfect 10s' is Full Truck Alliance, an interesting company in the Chinese tech and logistics sectors. The company is one of the world's largest digital freight hauler platforms, operating across China. Full Truck connects shippers with truckers, facilitating arrangements for varying cargo types and weights, various shipment routes, and long-haul shipping. The company offers an array of value-added services, designed to smooth out the freight carriage business. These include, on the shipper end, a transportation management system and a freight brokerage, and on the trucker end, traffic monitoring software and fuel services. Both shippers and truckers can access credit and insurance services. Key among Full Truck's features are the freight listing and freight brokerage services. Together, these let shippers post their shipping orders and locate the most appropriate trucker for the job—and they let truckers find cargo and routes that best fit their own schedules. The company operates across China, and in the fourth quarter of 2024, the platform covered 300 cities, 100,000 routes, had an average shipper MAU (monthly active users, a key metric) of 2.93 million, and helped 4.14 million truckers fulfill shipping orders. We should note that the average shipper MAU figure represents a 31% year-over-year increase. Earlier this month, Full Truck released its 4Q24 results. The company's platform facilitated 56.9 million fulfilled orders in the quarter, up 24% year-over-year. Based on that success, the company brought in $434.9 million in quarterly revenue, for 28% year-over-year growth, beating the forecast by $21.53 million. At the bottom line, Full Truck's non-GAAP EPS came to $0.14 per American Depositary Share (ADS), 1 cent per share better than the estimates. The company generated $157.6 million in net cash from operating activities. This underlines a company with real strengths, and covering the stock, JPMorgan analyst Karen Li notes that Full Truck's key strengths include its leading position in China's freight transport market and its position as an early leader in the digital freight market. 'Full Truck Alliance (FTA) is the largest digital platform in China's inter-city road freight transportation market, presenting a noteworthy investment opportunity. The company's strategic transformation and improving margin profile are key elements of its investment thesis. As the logistics industry shifts towards digital freight platforms, FTA is positioned to play a significant role in this transition, gradually replacing traditional offline freight brokers,' Li opined. 'This strategic direction enhances FTA's competitive edge and supports its market leadership, backed by a broad network and established presence. In addition, FTA is set for margin improvement, driven by a favourable product mix and a focus on transaction services… We believe FTA's strategic initiatives and operational efficiencies will support its growth trajectory, making it a notable player in the evolving logistics landscape,' the analyst added. Li goes on to rate YMM shares as Overweight (i.e., Buy), and she accompanies that with an $18 price target, showing her confidence in a 38.5% one-year upside potential for the stock. (To watch Li's track record, click here) The 7 recent analyst reviews here include 6 Buys and 1 Hold, for a Strong Buy consensus rating. The stock's $12.99 trading price and $15.69 average target price together imply a 21% gain for the year ahead. (See YMM stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
