First Horizon (NYSE:FHN) Upgraded to “Strong-Buy” at DA Davidson

DA Davidson upgraded shares of First Horizon (NYSE:FHN) from a hold rating to a strong-buy rating in a research report report published on Friday morning,Zacks.com reports.

Several other equities research analysts also recently issued reports on FHN. Weiss Ratings restated a “buy (b-)” rating on shares of First Horizon in a report on Monday. Robert W. Baird restated a “neutral” rating and issued a $25.00 price target on shares of First Horizon in a research note on Thursday, December 11th. Citigroup upped their price target on shares of First Horizon from $25.00 to $26.00 and gave the company a “buy” rating in a report on Tuesday, August 26th. Cowen began coverage on shares of First Horizon in a report on Wednesday, September 24th. They set a “hold” rating for the company. Finally, TD Cowen initiated coverage on shares of First Horizon in a research report on Thursday, September 25th. They issued a “hold” rating and a $25.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, First Horizon currently has a consensus rating of “Moderate Buy” and an average target price of $25.29.

First Horizon Stock Performance

NYSE:FHN opened at $24.41 on Friday. The firm has a 50-day moving average of $21.94 and a two-hundred day moving average of $21.85. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.96 and a quick ratio of 0.95. The stock has a market cap of $12.02 billion, a P/E ratio of 14.80, a PEG ratio of 0.93 and a beta of 0.62. First Horizon has a 1-year low of $15.19 and a 1-year high of $24.44.

First Horizon (NYSE:FHN) last announced its earnings results on Wednesday, October 15th. The financial services provider reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06. First Horizon had a return on equity of 10.93% and a net margin of 18.08%.The business had revenue of $893.00 million for the quarter, compared to analyst estimates of $848.08 million. During the same period in the previous year, the company earned $0.42 earnings per share. The company’s revenue for the quarter was up 7.4% compared to the same quarter last year. On average, research analysts expect that First Horizon will post 1.67 earnings per share for the current fiscal year.

First Horizon Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Friday, December 12th will be paid a dividend of $0.15 per share. The ex-dividend date is Friday, December 12th. This represents a $0.60 annualized dividend and a yield of 2.5%. First Horizon’s payout ratio is presently 36.36%.

First Horizon announced that its Board of Directors has authorized a share repurchase plan on Monday, October 27th that allows the company to buyback $1.20 billion in shares. This buyback authorization allows the financial services provider to buy up to 11.3% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at First Horizon

In other First Horizon news, CAO Jeff L. Fleming sold 7,619 shares of First Horizon stock in a transaction that occurred on Wednesday, November 12th. The stock was sold at an average price of $21.74, for a total value of $165,637.06. Following the completion of the transaction, the chief accounting officer directly owned 128,626 shares in the company, valued at $2,796,329.24. The trade was a 5.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP David T. Popwell sold 155,149 shares of the company’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $21.31, for a total value of $3,306,225.19. Following the transaction, the executive vice president directly owned 307,432 shares of the company’s stock, valued at $6,551,375.92. This trade represents a 33.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.87% of the company’s stock.

Institutional Investors Weigh In On First Horizon

Hedge funds have recently added to or reduced their stakes in the stock. Navigoe LLC bought a new position in shares of First Horizon during the third quarter worth about $25,000. Atlantic Union Bankshares Corp acquired a new position in First Horizon during the 3rd quarter valued at about $25,000. Root Financial Partners LLC bought a new position in First Horizon in the 3rd quarter worth about $31,000. Kestra Investment Management LLC increased its stake in shares of First Horizon by 873.1% in the second quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider’s stock valued at $34,000 after purchasing an additional 1,458 shares during the period. Finally, Geneos Wealth Management Inc. raised its holdings in shares of First Horizon by 156.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider’s stock valued at $35,000 after buying an additional 1,095 shares during the last quarter. 80.28% of the stock is currently owned by institutional investors.

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.