Michael J. Stewart, President of First Merchants Corp (NASDAQ:FRME), recently sold 7,248 shares of the company's common stock. The shares were sold at a price of $43.73 each, resulting in a total transaction value of $316,955. The regional bank, currently valued at $2.5 billion, has shown strong momentum with a 41% gain over the past six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate. Following this transaction, Stewart retains direct ownership of 92,664.364 shares, which includes restricted stock awards amounting to 40,494.977 shares. Additionally, Stewart indirectly owns 7,235.285 shares through a 401(k) plan. The company maintains a solid dividend track record, having raised dividends for 13 consecutive years, with a current yield of 3.2%. InvestingPro subscribers can access 8 additional key insights about First Merchants Corp, including detailed financial health metrics and comprehensive Pro Research Reports.
In other recent news, financial services firm Piper Sandler has spotlighted Old National Bancorp (NASDAQ:ONB) and First Merchants Corporation in a note focused on Midwest banks. The analyst underscored the potential of these institutions to exceed expectations based on their current positioning and recent developments. Old National Bancorp's recent Bremer transaction is expected to boost earnings per share by over 20%, contributing additional low-cost, stable deposits. For First Merchants Corporation, there is anticipation of high single-digit loan growth in 2025, supported by a strong loan pipeline and the bank's continued strength in commercial and industrial lending.
First Merchants Corporation also announced a cash dividend of $0.35 per share and reported strong third-quarter earnings. Total (EPA:TTEF) assets rose to $18.3 billion with earnings per share increasing to $0.84. The company is also set to sell five non-core Illinois branches, expected to provide a gain of $20 million to $25 million, aiding balance sheet restructuring. Piper Sandler maintained an Overweight rating on First Merchants and adjusted the price target from $50.00 to $47.00.
The bank has plans for organic growth in 2025, especially in commercial and industrial and investment real estate segments. Additionally, First Merchants is open to acquisitions, particularly in Indiana, Iowa, and Michigan, as part of its growth strategy. These are the latest developments in the financial sector, providing investors with insights into the recent performance and future prospects of these Midwest banks.
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