Flagstar Bank, National Association (NYSE:FLG) Upgraded by Morgan Stanley to Overweight Rating

Key Points

• Morgan Stanley upgraded Flagstar Bank to Overweight from Equal Weight and set a $17 price target, implying approximately 25.5% upside from the reported $13.55 share price.
• Analyst sentiment is generally positive: ten analysts rate the stock Buy and four rate it Hold, producing a consensus rating of Moderate Buy and an average target price of $16.96.
• Flagstar recently authorized a $250 million share repurchase program, covering up to 4.1% of outstanding shares, despite reporting quarterly EPS and revenue below analyst expectations.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) was upgraded by Morgan Stanley from an "equal weight" rating to an "overweight" rating in a research report issued to clients and investors on Tuesday, MarketBeat reports. The brokerage currently has a $17.00 price objective on the stock. Morgan Stanley's target price would indicate a potential upside of 25.46% from the company's current price.

A number of other equities research analysts also recently commented on FLG. Raymond James Financial began coverage on Flagstar Bank, National Association in a research note on Wednesday, September 2nd. They issued a "market perform" rating for the company. Royal Bank Of Canada decreased their price target on Flagstar Bank, National Association from $16.00 to $15.00 and set a "sector perform" rating on the stock in a research note on Monday, July 27th. Cantor Fitzgerald lifted their price target on Flagstar Bank, National Association from $16.00 to $17.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. JPMorgan Chase & Co. upped their price objective on shares of Flagstar Bank, National Association from $15.50 to $17.00 and gave the company a "neutral" rating in a research note on Wednesday, July 1st. Finally, Weiss Ratings upgraded shares of Flagstar Bank, National Association from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $16.96.

Flagstar Bank, National Association Stock Performance

Shares of FLG opened at $13.55 on Tuesday. Flagstar Bank, National Association has a 1 year low of $10.57 and a 1 year high of $15.44. The company's 50 day simple moving average is $14.19 and its 200 day simple moving average is $13.91. The company has a market capitalization of $5.62 billion, a price-to-earnings ratio of 451.67 and a beta of 0.99. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.90 and a current ratio of 0.90.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last released its 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 firm had revenue of $512.00 million during the quarter, compared to analysts' expectations of $539.34 million. During the same period in the previous year, the firm posted ($0.14) earnings per share. The firm's revenue was up 4.0% on a year-over-year basis. On average, sell-side analysts predict that Flagstar Bank, National Association will post 0.33 EPS for the current year.

Flagstar Bank, National Association declared that its Board of Directors has authorized a share buyback plan on Friday, July 24th that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 4.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Flagstar Bank, National Association

Several institutional investors and hedge funds have recently added to or reduced their stakes in FLG. DV Equities LLC acquired a new position in shares of Flagstar Bank, National Association in the 4th quarter valued at about $25,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new position in Flagstar Bank, National Association in the fourth quarter valued at approximately $34,000. Litman Gregory Wealth Management LLC purchased a new position in Flagstar Bank, National Association in the fourth quarter valued at approximately $34,000. Advisory Services Network LLC purchased a new position in Flagstar Bank, National Association in the third quarter valued at approximately $35,000. Finally, Kemnay Advisory Services Inc. acquired a new position in Flagstar Bank, National Association during the fourth quarter valued at approximately $42,000. 67.88% of the stock is currently owned by institutional investors and hedge funds.

Flagstar Bank, National Association Company Profile

Flagstar Financial Corporation NYSE: FLG is a bank holding company whose principal subsidiary, Flagstar Bank, provides a range of financial services across the United States. Headquartered in Troy, Michigan, Flagstar combines commercial banking, mortgage lending and servicing, and deposit products to serve individuals, businesses and public entities. As a publicly traded company, Flagstar leverages its banking charter and national mortgage platform to deliver tailored financial solutions through both digital and branch channels.

The company's mortgage business is one of the largest residential originators and servicers in the nation, offering retail, wholesale and correspondent lending channels.

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