First Merchants Corp

First Merchants Corp (FRME) Stock Analysis

$39.600

+0.119 (+0.30%)At close

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High
40.260
Open
39.590
VWAP
39.78
Volume
429.18K
Mkt Cap
1.89B
Low
39.480
Amount
17.07M
EV/EBITDA, TTM
10.78

First Merchants Corporation is a financial holding company. It has one full-service bank charter, First Merchants Bank (the Bank). The Bank operates First Merchants Private Wealth Advisors (a division of First Merchants Bank). Through the Bank, the Company offers a broad range of commercial and consumer banking services. Its commercial banking solutions include debt capital, treasury management services and depository products. Its consumer banking solutions include consumer deposit and lending products. Its mortgage banking offers consumer mortgage solutions to assist with the purchase, refinance, construction or renovation of residential properties. Its private wealth advisors offer personal wealth management services with expertise in investment management, private banking, fiduciary estate and financial planning. It operates approximately 111 banking locations in Indiana, Ohio, and Michigan.

AI analysis of First Merchants Corp (FRME)

Hold

First Merchants Corp (FRME) is currently priced at $39.60, with a forward P/E of 11.07, indicating it may be undervalued compared to its earnings potential. However, the recent insider selling has increased by 156.41%, which raises concerns about confidence in the stock. Additionally, the company has shown only 6.4% annual revenue growth over the past two years, which is below the banking sector average, suggesting potential demand weaknesses. Therefore, while there are some positive indicators, the risks associated with insider selling and revenue growth warrant a cautious approach, leading to a hold recommendation.

Analyst Ratings (6)

+21.21% upside
Buy
3 Buy
3 Hold
0 Sell
Current: 39.60
Low
46.00
Average
48.00
High
50.00

Raymond James

2026-10-06

Price Target

$46

Outperform

Piper Sandler

2026-10-05

Price Target

$46

Overweight

Piper Sandler

2026-06-26

Price Target

$51

Overweight

Piper Sandler

2026-02-04

Price Target

$49

Overweight

Piper Sandler

2025-10-27

Price Target

$46

Overweight

Valuation Metrics

The current forward P/E ratio for First Merchants Corp (FRME) is 11.07, compared to its 5-year average forward P/E of 10.04.

Forward P/E

Fair
5Y Average P/E
10.04
Current P/E
11.07
Overvalued
11.25
Undervalued
8.83

Forward EV/EBITDA

Overvalued
5Y Average EV/EBITDA
2.25
Current EV/EBITDA
10.78
Overvalued
7.57
Undervalued
-3.07

Forward P/S

Fair
5Y Average P/S
3.18
Current P/S
2.93
Overvalued
3.56
Undervalued
2.79

Alphio AI Price Scenarios for FRME

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%FRME

$41.45

Scenario price

B

Base

Base · 50%FRME

$33.37

Scenario price

B

Bear

Bear · 25%FRME

$29.35

Scenario price

Whales holding FRME

S

Systematic Financial Management LP

+ HoldingFRME

-10.62%

3M Return

Events Timeline

2026-10-01 (ET)

08:30:00

First Merchants CEO Mark Hardwick to Retire at Year-End

2026-09-17 (ET)

14:00:00

First Merchants Files Automatic Mixed Securities Shelf

2026-07-22 (ET)

16:30:00

First Merchants Reports Q2 Revenue of $196.1M

2026-04-22 (ET)

16:40:00

First Merchants Reports Q1 Tangible Book Value of $29.34

2026-03-31 (ET)

07:40:00

Spiral Partners with First Merchants Bank

News

FRME FAQ — answered by Alphio AI

First Merchants Corporation is a financial holding company. It has one full-service bank charter, First Merchants Bank (the Bank). The Bank operates First Merchants Private Wealth Advisors (a division of First Merchants Bank). Through the Bank, the Company offers a broad range of commercial and consumer banking services. Its commercial banking solutions include debt capital, treasury management services and depository products. Its consumer banking solutions include consumer deposit and lending products. Its mortgage banking offers consumer mortgage solutions to assist with the purchase, refinance, construction or renovation of residential properties. Its private wealth advisors offer personal wealth management services with expertise in investment management, private banking, fiduciary estate and financial planning. It operates approximately 111 banking locations in Indiana, Ohio, and Michigan. It operates in the Financials sector (NATIONAL COMMERCIAL BANKS industry).

First Merchants Corp (FRME) is currently priced at $39.60, with a forward P/E of 11.07, indicating it may be undervalued compared to its earnings potential. However, the recent insider selling has increased by 156.41%, which raises concerns about confidence in the stock. Additionally, the company has shown only 6.4% annual revenue growth over the past two years, which is below the banking sector average, suggesting potential demand weaknesses. Therefore, while there are some positive indicators, the risks associated with insider selling and revenue growth warrant a cautious approach, leading to a hold recommendation.

6 analysts cover FRME: 3 rate it Buy, 3 Hold and 0 Sell. The average price target is 48.00.

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This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

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