Raymond James has downgraded First Merchants Corp (FRME) to Market Perform from Outperform, signaling a shift in sentiment regarding the bank's outlook. This decision, made on September 25, 2025, comes as the company faces increased caution amid potential competitive pressures and market conditions that could impact performance.
Based in Muncie, Indiana, First Merchants Corp operates as a bank holding company, providing a range of financial services through its subsidiary, First Merchants Bank. The bank serves customers across Indiana, Ohio, and Michigan, with approximately 110 locations. As of now, the company has a market cap of $2.1 billion, a P/E ratio of 8.93, and an impressive dividend yield of 407.2%.
Looking ahead, First Merchants is set to report its next earnings on July 21, 2026, with an estimated EPS of $1.06 and revenue of $201.1 million. The recent earnings performance shows a mixed track record, with Q3 2025 EPS matching estimates at $0.98, while prior quarters displayed both surprises and misses.
Analyst ratings, such as this downgrade, reflect professional opinions based on extensive research and financial modeling. While they can offer valuable insights, they should be considered alongside a variety of factors, including company fundamentals and market trends. As new information becomes available, analyst perspectives may evolve, underscoring the dynamic nature of market evaluations.