Heavy Volume And Pre-Market Movement For Firstmerit (FMER)

Trade-Ideas LLC identified Firstmerit ( FMER) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Firstmerit as such a stock due to the following factors:

  • FMER has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.6 million.
  • FMER traded 165,947 shares today in the pre-market hours as of 8:37 AM, representing 10.5% of its average daily volume.

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More details on FMER:

FirstMerit Corporation operates as the bank holding company for FirstMerit Bank N.A. that provides various banking, fiduciary, financial, insurance, and investment services to corporate, institutional, and individual customers. The stock currently has a dividend yield of 4.3%. FMER has a PE ratio of 11. Currently there is 1 analyst that rates Firstmerit a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Firstmerit has been 1.3 million shares per day over the past 30 days. Firstmerit has a market cap of $2.6 billion and is part of the financial sector and banking industry. The stock has a beta of 1.09 and a short float of 4% with 4.11 days to cover. Shares are down 13.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Firstmerit as a buy. Among the primary strengths of the company is its expanding profit margins over time. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The gross profit margin for FIRSTMERIT CORP is currently very high, coming in at 89.31%. Regardless of FMER's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 21.73% trails the industry average.
  • FMER, with its decline in revenue, slightly underperformed the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 2.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • FIRSTMERIT CORP's earnings per share declined by 8.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FIRSTMERIT CORP increased its bottom line by earning $1.39 versus $1.18 in the prior year. For the next year, the market is expecting a contraction of 3.6% in earnings ($1.34 versus $1.39).
  • Net operating cash flow has decreased to $75.72 million or 11.03% when compared to the same quarter last year. Despite a decrease in cash flow of 11.03%, FIRSTMERIT CORP is still significantly exceeding the industry average of -96.18%.
  • FMER is off 5.70% from its price level of one year ago, reflecting a combination of (a) the general market trend and (b) the company's own weaknesses, including its lower earnings per share compared to the year-earlier quarter. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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