Barclays Has Lowered Expectations for Flagstar Bank, National Association (NYSE:FLG) Stock Price

Key Points

• Barclays lowered its price target for Flagstar Bank from $17 to $15 while maintaining an “overweight” rating, implying approximately 27.9% upside from the stock’s $11.73 price.
• Analyst sentiment remains mixed but generally positive: Flagstar has a “Moderate Buy” consensus rating and an average target price of $16.46, despite downgrades from Wall Street Zen and JPMorgan.
• The company reported quarterly EPS of $0.05, below the $0.06 estimate, while revenue of $512 million also missed expectations; separately, its board authorized a $250 million share buyback covering up to 4.1% of outstanding shares.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) had its price target lowered by stock analysts at Barclays from $17.00 to $15.00 in a note issued to investors on Monday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Barclays's price objective would indicate a potential upside of 27.89% from the company's current price.

Several other analysts have also recently issued reports on FLG. Wall Street Zen cut Flagstar Bank, National Association from a "hold" rating to a "sell" rating in a research note on Saturday, September 26th. JPMorgan Chase & Co. cut their price objective on shares of Flagstar Bank, National Association from $15.50 to $14.00 and set a "neutral" rating on the stock in a research report on Thursday. Cantor Fitzgerald boosted their price target on Flagstar Bank, National Association from $16.00 to $17.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Morgan Stanley decreased their price objective on shares of Flagstar Bank, National Association from $17.00 to $16.00 and set an "overweight" rating for the company in a report on Monday, September 28th. Finally, Raymond James Financial initiated coverage on Flagstar Bank, National Association in a report on Wednesday, September 2nd. They set a "market perform" rating on the stock. Ten research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $16.46.

Flagstar Bank, National Association Stock Up 0.2%

Flagstar Bank, National Association stock traded up $0.03 during midday trading on Monday, hitting $11.73. 1,199,726 shares of the stock were exchanged, compared to its average volume of 4,887,398. Flagstar Bank, National Association has a 1 year low of $10.57 and a 1 year high of $15.44. The firm has a market cap of $4.87 billion, a P/E ratio of 391.50 and a beta of 1.05. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.90 and a quick ratio of 0.90. The company has a 50 day moving average price of $13.33 and a two-hundred day moving average price of $13.85.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last released its quarterly earnings results on Friday, July 24th. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.01). Flagstar Bank, National Association had a return on equity of 0.98% and a net margin of 1.08%.The business had revenue of $512.00 million during the quarter, compared to analyst estimates of $539.34 million. During the same quarter last year, the firm posted ($0.14) EPS. The company's revenue was up 4.0% compared to the same quarter last year. On average, sell-side analysts predict that Flagstar Bank, National Association will post 0.31 earnings per share for the current fiscal year.

Flagstar Bank, National Association announced that its Board of Directors has approved a share buyback program on Friday, July 24th that allows the company to buyback $250.00 million in shares. This buyback authorization allows the company to purchase up to 4.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Flagstar Bank, National Association

A number of institutional investors have recently modified their holdings of FLG. Core Capital Management & Research inc. acquired a new stake in Flagstar Bank, National Association during the second quarter valued at $50,000. Sequoia Financial Advisors LLC boosted its holdings in shares of Flagstar Bank, National Association by 166.5% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 33,438 shares of the company's stock worth $500,000 after buying an additional 20,893 shares during the period. Tidal Investments LLC bought a new stake in Flagstar Bank, National Association during the second quarter valued at about $207,000. Engineers Gate Manager LP acquired a new stake in Flagstar Bank, National Association in the 2nd quarter valued at approximately $8,480,000. Finally, IFP Advisors Inc grew its stake in shares of Flagstar Bank, National Association by 114.0% in the second quarter. IFP Advisors Inc now owns 3,013 shares of the company's stock worth $45,000 after acquiring an additional 1,605 shares during the last quarter. Institutional investors and hedge funds own 67.88% of the company's stock.

About Flagstar Bank, National Association

Flagstar Bank, National Association is the principal banking subsidiary of Flagstar Financial, Inc NYSE: FLG. The bank provides a range of financial services to consumers, businesses and institutional clients, including deposit accounts, residential and commercial lending, consumer loans, credit products and treasury management services.

Flagstar also has a significant mortgage banking business, offering home purchase and refinancing loans through retail, broker and correspondent channels.

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