JPMorgan Chase & Co. Issues Pessimistic Forecast for First Horizon (NYSE:FHN) Stock Price

Key Points

• JPMorgan lowered its price target for First Horizon from $27 to $26 while maintaining a neutral rating, implying approximately 12.7% upside from the cited share price.
• Analyst sentiment remains cautious: First Horizon has a consensus “Hold” rating and a $27.02 average target price, with several firms recently cutting their targets to $25.
• First Horizon slightly beat quarterly EPS estimates at $0.53 versus $0.52, but revenue missed forecasts. The planned sale of roughly $4.5 billion in consumer mortgages could support future growth, while related charges contributed to a reported $94 million net loss.

First Horizon (NYSE:FHN - Get Free Report) had its price objective decreased by research analysts at JPMorgan Chase & Co. from $27.00 to $26.00 in a report released on Friday, Benzinga reports. The firm presently has a "neutral" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 12.68% from the company's current price.

Other equities analysts also recently issued reports about the stock. Truist Financial reduced their price objective on shares of First Horizon from $27.00 to $25.00 and set a "hold" rating for the company in a report on Friday, October 9th. Evercore reissued a "hold" rating and issued a $25.00 price target on shares of First Horizon in a research report on Thursday, October 1st. Wells Fargo & Company cut their price target on shares of First Horizon from $28.00 to $25.00 and set an "equal weight" rating for the company in a research note on Wednesday, September 30th. Fundamental Research set a $28.50 price objective on First Horizon in a report on Wednesday, July 1st. Finally, Wall Street Zen lowered First Horizon from a "hold" rating to a "sell" rating in a research note on Sunday, October 11th. Eight analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, First Horizon has a consensus rating of "Hold" and a consensus target price of $27.02.

First Horizon Stock Performance

Shares of NYSE FHN traded up $0.21 during mid-day trading on Friday, hitting $23.07. The company had a trading volume of 2,733,201 shares, compared to its average volume of 5,448,802. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.97 and a quick ratio of 0.96. The business's 50-day simple moving average is $24.20 and its 200-day simple moving average is $24.52. First Horizon has a 12 month low of $20.00 and a 12 month high of $26.56. The firm has a market cap of $10.93 billion, a P/E ratio of 11.05, a PEG ratio of 0.97 and a beta of 0.61.

First Horizon (NYSE:FHN - Get Free Report) last issued its quarterly earnings results on Thursday, October 15th. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.52 by $0.01. First Horizon had a return on equity of 12.06% and a net margin of 21.12%. The firm had revenue of $883.00 million for the quarter, compared to analyst estimates of $889.18 million. During the same period in the previous year, the company posted $0.51 earnings per share. As a group, analysts predict that First Horizon will post 2.15 earnings per share for the current fiscal year.

Insider Buying and Selling at First Horizon

In related news, EVP Elizabeth Ardoin sold 18,313 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $24.85, for a total transaction of $455,078.05. Following the completion of the sale, the executive vice president owned 340,368 shares in the company, valued at $8,458,144.80. This trade represents a 5.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.91% of the company's stock.

Institutional Trading of First Horizon

Several hedge funds have recently modified their holdings of FHN. BlackRock Inc. bought a new stake in First Horizon during the 2nd quarter worth approximately $1,505,239,000. Bank of New York Mellon Corp acquired a new position in First Horizon during the 2nd quarter worth about $747,445,000. William Blair Investment Management LLC acquired a new stake in First Horizon in the 2nd quarter valued at about $123,283,000. Bank of America Corp DE bought a new stake in shares of First Horizon during the second quarter valued at approximately $96,739,000. Finally, Sculptor Capital LP bought a new position in First Horizon in the 2nd quarter worth approximately $84,612,000. Institutional investors and hedge funds own 80.28% of the company's stock.

Key First Horizon News

Here are the key news stories impacting First Horizon this week:

• Positive Sentiment: First Horizon reported third-quarter adjusted earnings of $0.53 per share, slightly above the $0.52 analyst consensus and up from $0.51 a year earlier. The result indicates that underlying operations remained resilient despite portfolio repositioning. First Horizon quarterly earnings report
• Positive Sentiment: Management announced plans to sell approximately $4.5 billion of consumer mortgages and redeploy capital toward businesses expected to provide stronger earnings and growth potential. The move could improve the company’s balance-sheet mix, liquidity and future profitability once completed. First Horizon third-quarter results and strategic balance-sheet changes
• Neutral Sentiment: The quarter was mixed: revenue of $883 million fell short of the $889.2 million estimate, but return on equity was 12.06% and net margin was 21.12%, supporting the view that the core franchise remains profitable. First Horizon third-quarter sales report
• Negative Sentiment: First Horizon posted a $94 million net loss available to common shareholders, or a $0.20 loss per share, primarily because of charges associated with the mortgage portfolio sale. The transaction creates near-term earnings pressure and execution risk while investors wait for the anticipated benefits. First Horizon reports third-quarter net loss

First Horizon Company Profile

First Horizon Corporation NYSE: FHN is a financial services company headquartered in Memphis, Tennessee. Through its banking subsidiary, First Horizon Bank, the company provides a range of financial products and services to consumers, businesses, and institutions.

Its main activities include consumer and commercial banking, lending, deposit accounts, treasury and cash-management services, mortgage banking, and investment and wealth-management services. First Horizon also offers capital-markets and investment-banking services through its specialized businesses, serving clients across various industries and market segments.

The company traces its roots to First Tennessee Bank, which was founded in Memphis in 1864.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.