First Merchants Stock Alpha and Beta Analysis
| FRME Stock | USD 43.75 0.21 0.48% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as First Merchants. It also helps investors analyze the systematic and unsystematic risks associated with investing in First Merchants over a specified time horizon. Remember, high First Merchants' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to First Merchants' market risk premium analysis include:
Beta 2.42 | Alpha (0.1) | Risk 2.6 | Sharpe Ratio 0.0996 | Expected Return 0.26 |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
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First Merchants Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. First Merchants market risk premium is the additional return an investor will receive from holding First Merchants long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in First Merchants. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate First Merchants' performance over market.| α | -0.1 | β | 2.42 |
First Merchants expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of First Merchants' Buy-and-hold return. Our buy-and-hold chart shows how First Merchants performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.First Merchants Market Price Analysis
Market price analysis indicators help investors to evaluate how First Merchants stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading First Merchants shares will generate the highest return on investment. By understating and applying First Merchants stock market price indicators, traders can identify First Merchants position entry and exit signals to maximize returns.
First Merchants Return and Market Media
The median price of First Merchants for the period between Tue, Sep 3, 2024 and Mon, Dec 2, 2024 is 37.38 with a coefficient of variation of 7.81. The daily time series for the period is distributed with a sample standard deviation of 3.03, arithmetic mean of 38.78, and mean deviation of 2.55. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Acquisition by Becher Michael R of 653 shares of First Merchants at 37.08 subject to Rule 16b-3 | 09/06/2024 |
| First Merchants dividend paid on 20th of September 2024 | 09/20/2024 |
2 | Acquisition by Stephan Fluhler of tradable shares of First Merchants subject to Rule 16b-3 | 09/24/2024 |
3 | Is this economy turning against cities | 10/23/2024 |
4 | First Merchants Corporation Announces Third Quarter 2024 Earnings per Share | 10/24/2024 |
5 | First Merchants Third Quarter 2024 Earnings Misses Expectations | 10/25/2024 |
6 | First Merchants Corp Trading 3.27 percent Higher on Oct 28 | 10/28/2024 |
7 | Disposition of 26437 shares by Fehring Patrick J. of First Merchants at 43.01 subject to Rule 16b-3 | 11/08/2024 |
8 | First Merchants declares 0.35 dividend | 11/13/2024 |
9 | Disposition of 1171 shares by Mark Hardwick of First Merchants subject to Rule 16b-3 | 11/19/2024 |
10 | Acquisition by Wojtowicz Jean L of 840 shares of First Merchants at 37.2 subject to Rule 16b-3 | 11/22/2024 |
11 | First Merchants Sets New 12-Month High Whats Next | 11/25/2024 |
About First Merchants Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including First or other stocks. Alpha measures the amount that position in First Merchants has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0272 | 0.0313 | 0.0373 | 0.0353 | Price To Sales Ratio | 4.33 | 3.78 | 3.36 | 2.73 |
First Merchants Upcoming Company Events
As portrayed in its financial statements, the presentation of First Merchants' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, First Merchants' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of First Merchants' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of First Merchants. Please utilize our Beneish M Score to check the likelihood of First Merchants' management manipulating its earnings.
| 23rd of April 2024 Upcoming Quarterly Report | View | |
| 23rd of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Build Portfolio with First Merchants
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out First Merchants Backtesting, First Merchants Valuation, First Merchants Correlation, First Merchants Hype Analysis, First Merchants Volatility, First Merchants History and analyze First Merchants Performance. For information on how to trade First Stock refer to our How to Trade First Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
First Merchants technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.