First Merchants Stock Performance

FRME Stock  USD 36.55  0.30  0.81%   
The firm shows a Beta (market volatility) of 1.1, which means a somewhat significant risk relative to the market. First Merchants returns are very sensitive to returns on the market. As the market goes up or down, First Merchants is expected to follow. At this point, First Merchants has a negative expected return of -0.17%. Please make sure to confirm First Merchants' skewness, as well as the relationship between the rate of daily change and period momentum indicator , to decide if First Merchants performance from the past will be repeated at some point in the near future.

Risk-Adjusted Performance

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Over the last 90 days First Merchants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders. ...more
 
First Merchants dividend paid on 19th of September 2025
09/19/2025
Begin Period Cash Flow112.6 M
Total Cashflows From Investing Activities-252.4 M

First Merchants Relative Risk vs. Return Landscape

If you would invest  4,106  in First Merchants on August 26, 2025 and sell it today you would lose (451.00) from holding First Merchants or give up 10.98% of portfolio value over 90 days. First Merchants is currently does not generate positive expected returns and assumes 1.5332% risk (volatility on return distribution) over the 90 days horizon. In different words, 13% of stocks are less volatile than First, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
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Given the investment horizon of 90 days First Merchants is expected to under-perform the market. In addition to that, the company is 2.31 times more volatile than its market benchmark. It trades about -0.11 of its total potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.06 per unit of volatility.

First Merchants Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for First Merchants' investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as First Merchants, and traders can use it to determine the average amount a First Merchants' price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.1109

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Estimated Market Risk

 1.53
  actual daily
13
87% of assets are more volatile

Expected Return

 -0.17
  actual daily
0
Most of other assets have higher returns

Risk-Adjusted Return

 -0.11
  actual daily
0
Most of other assets perform better
Based on monthly moving average First Merchants is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of First Merchants by adding First Merchants to a well-diversified portfolio.

First Merchants Fundamentals Growth

First Stock prices reflect investors' perceptions of the future prospects and financial health of First Merchants, and First Merchants fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on First Stock performance.

About First Merchants Performance

By analyzing First Merchants' fundamental ratios, stakeholders can gain valuable insights into First Merchants' financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if First Merchants has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if First Merchants has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
First Merchants Corporation operates as the financial holding company for First Merchants Bank that provides community banking services. First Merchants Corporation was founded in 1893 and is headquartered in Muncie, Indiana. First Merchants operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 1821 people.

Things to note about First Merchants performance evaluation

Checking the ongoing alerts about First Merchants for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for First Merchants help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
First Merchants generated a negative expected return over the last 90 days
Over 81.0% of the company shares are owned by institutional investors
Evaluating First Merchants' performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate First Merchants' stock performance include:
  • Analyzing First Merchants' financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
  • Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether First Merchants' stock is overvalued or undervalued compared to its peers.
  • Examining First Merchants' industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
  • Evaluating First Merchants' management team can have a significant impact on its success or failure. Reviewing the track record and experience of First Merchants' management team can help you assess the Company's leadership.
  • Pay attention to analyst opinions and ratings of First Merchants' stock. These opinions can provide insight into First Merchants' potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating First Merchants' stock performance is not an exact science, and many factors can impact First Merchants' stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.

Complementary Tools for First Stock analysis

When running First Merchants' price analysis, check to measure First Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Merchants is operating at the current time. Most of First Merchants' value examination focuses on studying past and present price action to predict the probability of First Merchants' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Merchants' price. Additionally, you may evaluate how the addition of First Merchants to your portfolios can decrease your overall portfolio volatility.
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