Stock Price & Analysis

Based on the analysis of FRME's performance, dividend yield, earnings growth, and analyst sentiment, the recommendation is to Buy FRME stock.

Price Prediction for FRME Stock in 2025

Based on the analysis of FRME's current performance and market trends, here is a concise price prediction:

1. Target Price: FRME is expected to reach $43.00 by the end of 2025.
2. Reasoning: The stock shows strong support at its current levels, a competitive dividend yield of 3.14%, and positive analyst sentiment with a Zacks Rank of #1 (Strong Buy). However, moderate revenue growth challenges may limit significant upside.

The S1 support level for FRME Stock is $39.3 ,The R1 resistant level for FRME Stock is $41.36.

As of the end of day on 2025-03-26, the price of FRME Stock was $41.48.

The target price for FRME Stock according to analyst rating is 51.75, with the highest price target at 55.00 and the lowest at 50.00. Analysts have a Strong Buy rating on FRME Stock overall.

The market cap of FRME is $2.4B.

Analysis and Insights

To determine if FRME is overvalued, we analyze its financial performance, valuation metrics, and market sentiment.

Financial Performance:

FRME has shown strong revenue growth, with Q4 2024 revenue at $143 million, up from $141.6 million in Q1 2024. Net income has also increased, reaching $63.9 million in Q4 2024, up from $47.47 million in Q1 2024. The return on equity (ROE) is 38.73%, indicating strong profitability and efficient use of equity.

Valuation Metrics:

FRME's P/E ratio is lower than the industry average, suggesting it may be undervalued. The P/B ratio is also below average, further indicating undervaluation. The dividend yield of 3.14% is attractive compared to industry standards.

Market Sentiment:

Analysts have a positive outlook on FRME, with a consensus buy rating and price targets suggesting upside potential. Recent earnings reports have beaten expectations, contributing to positive sentiment.

Technical Analysis:

The stock is trading near its 20-day SMA, indicating support, but below the 50-day SMA, suggesting a short-term downtrend. The RSI is neutral, so no clear overbought or oversold signals.

Conclusion:

FRME appears undervalued based on its strong financial performance, attractive valuation multiples, and positive analyst sentiment. The recent price dip may present a buying opportunity.

{RATING:symbol=FRME.O, type=0}

First Merchants Corporation is a financial holding company. The Company conducts banking activities through its wholly owned subsidiary, First Merchants Bank (the Bank). The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank). Through the Bank, the Company offers a broad range of financial services, including accepting time, savings, and demand deposits; making consumer, commercial, agri-business and real estate mortgage loans; providing personal and corporate trust services; offering full-service brokerage and private wealth management; and providing letters of credit, repurchase agreements and other corporate services. The Company operates through a community banking segment. The Bank includes 116 banking locations in Indiana, Ohio, Michigan, and Illinois. In addition to its branch network, the Company offers comprehensive electronic and mobile delivery channels to its customers.

There is no relevant data available to provide a specific price prediction for FRME stock by 2030.

FRME has a total of 2162 employees.