Flagstar Bank, National Association (NYSE:FLG) Stock Price Target Cut by Morgan Stanley

Key Points

• Morgan Stanley cut Flagstar Bank’s price target from $17 to $16 while maintaining an “overweight” rating, implying approximately 31.4% upside from the stock’s $12.18 price.
• Analyst sentiment remains generally positive, with ten Buy ratings, three Holds and one Sell; MarketBeat reports a consensus “Moderate Buy” rating and an average target of $16.88.
• Flagstar missed quarterly expectations, reporting $0.05 in EPS versus $0.06 expected and revenue of $512 million versus $539.34 million estimated. Despite the shortfall, the company authorized a $250 million stock buyback, covering up to 4.1% of outstanding shares.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) had its target price dropped by research analysts at Morgan Stanley from $17.00 to $16.00 in a report released on Monday, Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's price objective points to a potential upside of 31.42% from the company's current price.

Several other equities analysts have also recently issued reports on the company. Raymond James Financial assumed coverage on Flagstar Bank, National Association in a research report on Wednesday, September 2nd. They set a "market perform" rating on the stock. DA Davidson restated a "buy" rating and issued a $17.00 price objective on shares of Flagstar Bank, National Association in a report on Monday, July 27th. Royal Bank Of Canada decreased their target price on Flagstar Bank, National Association from $16.00 to $15.00 and set a "sector perform" rating for the company in a research note on Monday, July 27th. Weiss Ratings lowered Flagstar Bank, National Association from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, September 18th. Finally, Piper Sandler boosted their price target on shares of Flagstar Bank, National Association from $16.50 to $17.50 and gave the stock an "overweight" rating in a research report on Friday, June 26th. Ten analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Flagstar Bank, National Association presently has an average rating of "Moderate Buy" and an average target price of $16.88.

Flagstar Bank, National Association Price Performance

Shares of NYSE:FLG traded down $0.20 during trading on Monday, reaching $12.18. The company had a trading volume of 191,035 shares, compared to its average volume of 4,852,536. The firm's fifty day moving average is $13.61 and its 200 day moving average is $13.87. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.90 and a current ratio of 0.90. The firm has a market capitalization of $5.05 billion, a PE ratio of 406.83 and a beta of 0.99. Flagstar Bank, National Association has a twelve month low of $10.57 and a twelve month high of $15.44.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last posted its quarterly earnings data on Friday, July 24th. The company reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.01). Flagstar Bank, National Association had a net margin of 1.08% and a return on equity of 0.98%. The company had revenue of $512.00 million for the quarter, compared to analyst estimates of $539.34 million. During the same quarter in the prior year, the business earned ($0.14) EPS. Flagstar Bank, National Association's revenue was up 4.0% compared to the same quarter last year. On average, equities analysts forecast that Flagstar Bank, National Association will post 0.33 EPS for the current year.

Flagstar Bank, National Association declared that its board has initiated a stock buyback program on Friday, July 24th that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 4.1% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Flagstar Bank, National Association

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Geode Capital Management LLC grew its holdings in shares of Flagstar Bank, National Association by 6.7% in the 4th quarter. Geode Capital Management LLC now owns 7,487,034 shares of the company's stock worth $94,277,000 after acquiring an additional 467,053 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Flagstar Bank, National Association by 9.2% during the first quarter. Dimensional Fund Advisors LP now owns 6,731,631 shares of the company's stock valued at $88,645,000 after purchasing an additional 569,003 shares during the last quarter. Norges Bank acquired a new position in shares of Flagstar Bank, National Association in the 4th quarter valued at $44,046,000. Private Management Group Inc. boosted its position in shares of Flagstar Bank, National Association by 1.1% in the 4th quarter. Private Management Group Inc. now owns 3,111,069 shares of the company's stock valued at $39,168,000 after purchasing an additional 34,167 shares during the period. Finally, North Reef Capital Management LP purchased a new position in Flagstar Bank, National Association in the 1st quarter worth about $36,744,000. 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 commercial bank that provides deposit, lending and other financial services to consumers, businesses and commercial real estate clients. Its offerings include checking and savings accounts, certificates of deposit, residential mortgages, home equity loans, consumer lending, commercial real estate financing and business banking services.

The bank also has a significant mortgage business, including home-loan origination, servicing and related products.

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