Flagstar Bank, National Association (NYSE:FLG) Rating Lowered to "Underweight" at Morgan Stanley

Key Points

• Morgan Stanley downgraded Flagstar Bank to “underweight” from “overweight,” setting a $12 price target, which the article says implies 13.72% upside from the previous close. Analysts overall have a consensus “hold” rating and a $14.12 price target.
• Flagstar reported quarterly earnings of $0.01 per share, below the $0.07 estimate, and revenue of $530 million, short of expectations of $545.12 million.
• The bank has authorized up to $250 million in share repurchases, while director Alan L. Frank recently bought 10,000 shares for about $101,400.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) was downgraded by stock analysts at Morgan Stanley from an "overweight" rating to an "underweight" rating in a research note issued to investors on Wednesday, Marketbeat reports. They currently have a $12.00 price target on the stock. Morgan Stanley's price objective would suggest a potential upside of 13.72% from the stock's previous close.

A number of other equities research analysts have also recently commented on the stock. JPMorgan Chase & Co. dropped their price objective on shares of Flagstar Bank, National Association from $14.00 to $11.50 and set a "neutral" rating on the stock in a research note on Monday, October 26th. Truist Financial decreased their target price on shares of Flagstar Bank, National Association from $15.00 to $13.00 and set a "buy" rating for the company in a research note on Monday, October 26th. DA Davidson reissued a "buy" rating and set a $17.00 price target on shares of Flagstar Bank, National Association in a report on Monday, July 27th. Wall Street Zen lowered shares of Flagstar Bank, National Association from a "hold" rating to a "sell" rating in a research report on Saturday, September 26th. Finally, Weiss Ratings cut shares of Flagstar Bank, National Association from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, October 27th. Nine equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $14.12.

Flagstar Bank, National Association Stock Down 1.8%

Shares of FLG opened at $10.55 on Wednesday. The company has a market capitalization of $4.38 billion, a price-to-earnings ratio of 67.19 and a beta of 1.10. Flagstar Bank, National Association has a 52 week low of $9.93 and a 52 week high of $15.44. The stock's 50-day moving average price is $11.99 and its 200-day moving average price is $13.41. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 1.53.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last announced its quarterly earnings results on Friday, October 23rd. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.06). Flagstar Bank, National Association had a net margin of 2.22% and a return on equity of 1.45%. The company had revenue of $530.00 million for the quarter, compared to analysts' expectations of $545.12 million. During the same quarter in the prior year, the business posted ($0.07) earnings per share. On average, sell-side analysts predict that Flagstar Bank, National Association will post 0.15 EPS for the current year.

Flagstar Bank, National Association announced that its Board of Directors has approved a stock repurchase plan on Friday, July 24th that allows the company to buy back $250 million in shares. This repurchase authorization allows the company to reacquire up to 4.1% of its shares through open market purchases. Share repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity at Flagstar Bank, National Association

In other Flagstar Bank, National Association news, Director Alan L. Frank bought 10,000 shares of Flagstar Bank, National Association stock in a transaction dated Tuesday, October 27th. The stock was acquired at an average cost of $10.14 per share, with a total value of $101,400.00. Following the purchase, the director directly owned 76,463 shares in the company, valued at $775,334.82. This represents a 15.05% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. 21.42% of the stock is owned by company insiders.

Institutional Investors Weigh In On Flagstar Bank, National Association

A number of institutional investors have recently added to or reduced their stakes in FLG. Vise Technologies Inc. acquired a new stake in Flagstar Bank, National Association in the 3rd quarter valued at about $170,000. State of Wyoming boosted its stake in shares of Flagstar Bank, National Association by 22.0% in the 3rd quarter. State of Wyoming now owns 41,607 shares of the company's stock valued at $486,000 after buying an additional 7,514 shares during the period. Cranbrook Wealth Management LLC purchased a new position in shares of Flagstar Bank, National Association in the 3rd quarter valued at about $1,751,000. D.A. Davidson & CO. grew its position in shares of Flagstar Bank, National Association by 35.4% during the third quarter. D.A. Davidson & CO. now owns 418,150 shares of the company's stock worth $4,880,000 after buying an additional 109,250 shares in the last quarter. Finally, Hourglass Capital LLC grew its position in shares of Flagstar Bank, National Association by 2.1% during the third quarter. Hourglass Capital LLC now owns 240,100 shares of the company's stock worth $2,802,000 after buying an additional 5,000 shares in the last quarter. Institutional investors and hedge funds own 67.88% of the company's stock.

Flagstar Bank, National Association Company Profile

Flagstar Bank, National Association is a full-service regional bank and the principal banking subsidiary of Flagstar Financial, Inc, formerly known as New York Community Bancorp. The bank provides consumer and business banking services through deposits, checking and savings accounts, lending, cash management, and digital banking channels.

Flagstar's lending activities include residential mortgages, mortgage servicing, commercial real estate loans, multifamily financing, commercial and industrial loans, and other consumer credit products.

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