Investors Buy High Volume of First Horizon Call Options (NYSE:FHN)

First Horizon Corporation (NYSE:FHN) was the recipient of unusually large options trading on Wednesday. Stock traders acquired 10,979 call options on the company. This is an increase of approximately 251% compared to the typical volume of 3,129 call options.

First Horizon Stock Down 3.0%

FHN stock opened at $24.95 on Thursday. The business has a 50-day simple moving average of $24.72 and a 200 day simple moving average of $24.25. First Horizon has a 52 week low of $19.80 and a 52 week high of $26.56. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.15. The company has a market cap of $11.84 billion, a PE ratio of 12.47, a price-to-earnings-growth ratio of 1.00 and a beta of 0.60.

First Horizon (NYSE:FHN) last announced its quarterly earnings data on Wednesday, July 15th. The financial services provider reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.02. The business had revenue of $890.00 million for the quarter, compared to analysts’ expectations of $878.42 million. First Horizon had a net margin of 20.54% and a return on equity of 11.65%. During the same period last year, the firm posted $0.45 earnings per share. Sell-side analysts anticipate that First Horizon will post 2.15 EPS for the current fiscal year.

First Horizon Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Friday, June 12th were paid a $0.17 dividend. The ex-dividend date of this dividend was Friday, June 12th. This represents a $0.68 annualized dividend and a dividend yield of 2.7%. First Horizon’s dividend payout ratio is presently 34.00%.

Hedge Funds Weigh In On First Horizon

Several hedge funds and other institutional investors have recently bought and sold shares of FHN. William Blair Investment Management LLC lifted its position in First Horizon by 2.2% in the 4th quarter. William Blair Investment Management LLC now owns 5,336,021 shares of the financial services provider’s stock valued at $127,531,000 after acquiring an additional 116,191 shares in the last quarter. Andrew Hill Investment Advisors Inc. purchased a new stake in shares of First Horizon during the 4th quarter valued at $7,059,000. Hudson Bay Capital Management LP purchased a new stake in First Horizon during the third quarter worth about $13,792,000. Tectonic Advisors LLC bought a new stake in First Horizon in the fourth quarter worth about $4,423,000. Finally, Qsemble Capital Management LP raised its position in First Horizon by 303.3% in the fourth quarter. Qsemble Capital Management LP now owns 451,446 shares of the financial services provider’s stock worth $10,790,000 after acquiring an additional 339,508 shares during the period. Institutional investors and hedge funds own 80.28% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on FHN. Wells Fargo & Company increased their target price on shares of First Horizon from $25.00 to $26.00 and gave the stock an “equal weight” rating in a report on Monday, July 6th. Weiss Ratings raised First Horizon from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, June 8th. UBS Group lowered First Horizon from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $29.00 to $25.00 in a research note on Tuesday, April 7th. Fundamental Research set a $28.50 price objective on First Horizon in a research report on Wednesday, July 1st. Finally, Autonomous Res cut shares of First Horizon from a “strong-buy” rating to a “strong sell” rating in a research report on Wednesday, April 29th. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, First Horizon has an average rating of “Hold” and an average target price of $27.12.

Key Headlines Impacting First Horizon

Here are the key news stories impacting First Horizon this week:

• Positive Sentiment: First Horizon reported second-quarter EPS of $0.54, topping expectations of $0.52, while revenue of $890 million also exceeded estimates. Net income available to common shareholders rose 12% year over year to $260 million, reflecting improved headline profitability. Article Title
• Positive Sentiment: Management’s results showed stronger earnings and higher profitability than a year ago, which supports the case that the bank is executing well operationally. Article Title
• Neutral Sentiment: Unusual call-option activity suggested some traders were positioning for upside ahead of the results, but that flow alone does not confirm a lasting shift in fundamentals.
• Neutral Sentiment: One commentary noted the stock still looks fairly valued near current levels, with solid credit quality but some concern that reserve levels and deposit mix could limit near-term upside. Article Title
• Negative Sentiment: Investors appear focused on deposit and funding-cost pressure, including reliance on more expensive brokered funding, which can compress net interest margin and weigh on future earnings growth. Article Title

About First Horizon

First Horizon Corporation, headquartered in Memphis, Tennessee, is a diversified financial services company providing an array of retail, commercial and wealth management solutions. As the largest bank-based financial services firm in Tennessee, First Horizon operates through a network of branches and digital platforms across the Southeastern United States, offering personal and business banking, mortgage origination and servicing, payment solutions and treasury management services.

Tracing its origins to the First National Bank of Memphis established in 1864, First Horizon has grown through strategic acquisitions and organic expansion to serve customers in Tennessee, Texas, North Carolina, South Carolina, Georgia and Florida.