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

Key Points

• TD Cowen cut its FLG price target from $17 to $16 while maintaining a “buy” rating, implying roughly 35.9% upside from the stock’s $11.77 price. Analysts overall hold a “Moderate Buy” consensus with an average target of $16.38.
• Flagstar’s latest quarterly results fell slightly short of expectations, with EPS of $0.05 versus $0.06 expected and revenue of $512 million versus $539.34 million estimated, although revenue increased 4% year over year.
• The company authorized a $250 million share-repurchase program, covering up to 4.1% of outstanding shares; institutional investors and hedge funds own approximately 67.88% of FLG.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) had its target price cut by equities researchers at TD Cowen from $17.00 to $16.00 in a research note issued on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. TD Cowen's target price suggests a potential upside of 35.90% from the stock's current price.

Other equities research analysts have also recently issued reports about the stock. DA Davidson restated a "buy" rating and set a $17.00 price objective on shares of Flagstar Bank, National Association in a research note on Monday, July 27th. Barclays decreased their target price on shares of Flagstar Bank, National Association from $17.00 to $15.00 and set an "overweight" rating for the company in a research report on Monday. Royal Bank Of Canada lowered their target price on shares of 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. UBS Group started coverage on shares of Flagstar Bank, National Association in a research report on Tuesday, July 7th. They set a "buy" rating and a $18.00 price target on the stock. Finally, Piper Sandler upped 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 note on Friday, June 26th. Ten analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $16.38.

Flagstar Bank, National Association Stock Performance

FLG stock traded up $0.07 on Monday, reaching $11.77. The company's stock had a trading volume of 1,366,314 shares, compared to its average volume of 4,888,134. Flagstar Bank, National Association has a 52 week low of $10.57 and a 52 week high of $15.44. The company has a market capitalization of $4.89 billion, a P/E ratio of 392.17 and a beta of 1.05. The firm has a fifty day moving average of $13.33 and a two-hundred day moving average of $13.85. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.90 and a quick ratio of 0.90.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last posted 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 net margin of 1.08% and a return on equity of 0.98%. The business had revenue of $512.00 million during the quarter, compared to analyst estimates of $539.34 million. During the same quarter in the prior year, the business earned ($0.14) earnings per share. The firm's revenue was up 4.0% compared to the same quarter last year. As a group, analysts predict that Flagstar Bank, National Association will post 0.31 EPS for the current fiscal year.

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

Institutional Inflows and Outflows

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

Flagstar Bank, National Association Company Profile

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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