First Merchants Corporation Stock Price and Value Analysis

Should you buy First Merchants Corporation stock? (NasdaqGS:FRME). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantagesNeutral
  • This company has stable growth.
  • This company is solid.
  • This company has a high dividend yield.
  • This company is making money at a modest rate.
  • This stock looks fairly priced.

Inside the FRME Numbers

FRME Price
(First Merchants Corporation stock price per share)
$38.98
[?] FRME Fair Price
(based on intrinsic value)
$40.54
[?] FRME Safety Price (based on a variable margin of safety) $26.35
[?] PE Ratio versus Sector 3% lower than other Financial stocks
[?] PE Ratio versus Industry 6% higher than other Unknown stocks
[?] Cash Yield 2.70%
[?] Free Cash Flow Jitter 19%
[?] Dividend Yield 3%
Shares Shorted 838,082

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 838,082 shares shorted. With 58,216,240 shares available for purchase and an average trading volume over the past 10 trading days of 150,040, it would take at least 5.586 days for all of the short holders to cover their shorts.

Is First Merchants Corporation Stock on Sale?

We believe that First Merchants Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

First Merchants Corporation looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy FRME Stock?

Does First Merchants Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.