First Horizon (NYSE:FHN) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

First Horizon (NYSE:FHN) issued its earnings results on Thursday. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.46 by $0.06, FiscalAI reports. First Horizon had a return on equity of 10.93% and a net margin of 18.08%.The business had revenue of $892.00 million for the quarter, compared to analysts’ expectations of $863.87 million.

First Horizon Trading Down 0.1%

Shares of NYSE:FHN opened at $24.08 on Thursday. The firm has a fifty day moving average of $23.11 and a two-hundred day moving average of $22.41. The firm has a market capitalization of $11.85 billion, a P/E ratio of 14.59, a price-to-earnings-growth ratio of 0.86 and a beta of 0.61. First Horizon has a 12-month low of $15.19 and a 12-month high of $24.91. The company has a quick ratio of 0.95, a current ratio of 0.96 and a debt-to-equity ratio of 0.15.

First Horizon Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 2nd. Shareholders of record on Friday, December 12th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 2.5%. The ex-dividend date was Friday, December 12th. First Horizon’s dividend payout ratio is currently 36.36%.

Insiders Place Their Bets

In other news, CAO Jeff L. Fleming sold 7,619 shares of the firm’s stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $21.74, for a total transaction of $165,637.06. Following the completion of the sale, the chief accounting officer directly owned 128,626 shares of the company’s stock, valued at $2,796,329.24. This trade represents a 5.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP David T. Popwell sold 155,149 shares of First Horizon stock in a transaction dated 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 sale, the executive vice president owned 307,432 shares of the company’s stock, valued at approximately $6,551,375.92. This represents a 33.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.87% of the company’s stock.

Hedge Funds Weigh In On First Horizon

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Qube Research & Technologies Ltd lifted its stake in First Horizon by 419.7% in the third quarter. Qube Research & Technologies Ltd now owns 1,989,925 shares of the financial services provider’s stock valued at $44,992,000 after acquiring an additional 1,607,028 shares during the last quarter. Bank of Montreal Can increased its stake in shares of First Horizon by 1,181.2% during the 3rd quarter. Bank of Montreal Can now owns 1,254,675 shares of the financial services provider’s stock worth $28,368,000 after purchasing an additional 1,156,747 shares during the last quarter. Freestone Grove Partners LP raised its holdings in shares of First Horizon by 25.3% during the 3rd quarter. Freestone Grove Partners LP now owns 4,788,438 shares of the financial services provider’s stock valued at $108,267,000 after purchasing an additional 967,219 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of First Horizon by 102.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,709,434 shares of the financial services provider’s stock valued at $33,197,000 after purchasing an additional 865,109 shares in the last quarter. Finally, Holocene Advisors LP acquired a new stake in shares of First Horizon in the 2nd quarter valued at $17,926,000. Institutional investors own 80.28% of the company’s stock.

First Horizon announced that its board has initiated a share repurchase program on Monday, October 27th that authorizes the company to repurchase $1.20 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 11.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts have commented on the stock. DA Davidson raised shares of First Horizon from a “hold” rating to a “strong-buy” rating in a research note on Friday, December 19th. Cowen reissued a “hold” rating on shares of First Horizon in a research report on Wednesday, January 7th. The Goldman Sachs Group set a $27.00 price target on shares of First Horizon and gave the company a “neutral” rating in a research report on Tuesday, January 6th. Wall Street Zen raised shares of First Horizon from a “sell” rating to a “hold” rating in a research note on Saturday, November 15th. Finally, UBS Group reiterated a “buy” rating and set a $28.00 price objective on shares of First Horizon in a research report on Tuesday, January 6th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat, First Horizon currently has a consensus rating of “Moderate Buy” and an average price target of $26.00.

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.