TD Cowen Issues Pessimistic Forecast for Flagstar Bank, National Association (NYSE:FLG) Stock Price

Key Points

• TD Cowen cut Flagstar’s price target from $16 to $13 but maintained a “buy” rating, implying 26.27% upside from the stock’s $10.29 price.
• Flagstar’s latest quarterly results missed expectations, with earnings of $0.01 per share versus a $0.07 estimate and revenue of $530 million versus $545.12 million expected.
• Analyst sentiment remains mixed but generally positive: MarketBeat reports a “Moderate Buy” consensus and an average $15.25 price target, while institutional investors own 67.88% of the shares and the company authorized a $250 million repurchase program.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) had its price target lowered by equities research analysts at TD Cowen from $16.00 to $13.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's price objective points to a potential upside of 26.27% from the company's current price.

FLG has been the topic of a number of other research reports. Morgan Stanley lowered their target price on Flagstar Bank, National Association from $17.00 to $16.00 and set an "overweight" rating on the stock in a research note on Monday, September 28th. Wall Street Zen cut Flagstar Bank, National Association from a "hold" rating to a "sell" rating in a research report on Saturday, September 26th. DA Davidson restated a "buy" rating and issued a $17.00 price objective on shares of Flagstar Bank, National Association in a research report on Monday, July 27th. Raymond James Financial assumed coverage on Flagstar Bank, National Association in a research report on Wednesday, September 2nd. They issued a "market perform" rating on the stock. Finally, Weiss Ratings raised shares of Flagstar Bank, National Association from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. Ten analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Flagstar Bank, National Association currently has an average rating of "Moderate Buy" and an average price target of $15.25.

Flagstar Bank, National Association Stock Performance

Shares of Flagstar Bank, National Association stock traded down $0.09 during trading on Monday, hitting $10.29. 2,824,381 shares of the company's stock were exchanged, compared to its average volume of 5,081,339. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.96 and a current ratio of 0.96. The business has a 50-day simple moving average of $12.45 and a 200-day simple moving average of $13.66. Flagstar Bank, National Association has a 52-week low of $10.28 and a 52-week high of $15.44. The stock has a market capitalization of $4.27 billion, a price-to-earnings ratio of 68.63 and a beta of 1.05.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last posted its earnings results on Friday, October 23rd. The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 business had revenue of $530.00 million for the quarter, compared to analyst estimates of $545.12 million. During the same quarter in the prior year, the firm earned ($0.07) earnings per share. On average, research analysts forecast that Flagstar Bank, National Association will post 0.28 EPS for the current year.

Flagstar Bank, National Association declared that its Board of Directors has authorized a share repurchase program 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 shares through open market purchases. Stock repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On Flagstar Bank, National Association

Several hedge funds have recently modified their holdings of the company. North Reef Capital Management LP purchased a new position in shares of Flagstar Bank, National Association in the 1st quarter valued at about $36,744,000. Dimensional Fund Advisors LP raised 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 acquiring an additional 569,003 shares during the last quarter. Engineers Gate Manager LP acquired a new stake in shares of Flagstar Bank, National Association in the second quarter worth approximately $8,480,000. Polar Asset Management Partners Inc. increased its position in shares of Flagstar Bank, National Association by 36.8% during the first quarter. Polar Asset Management Partners Inc. now owns 1,626,388 shares of the company's stock worth $21,420,000 after purchasing an additional 437,939 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund increased its position in shares of Flagstar Bank, National Association by 106.8% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 611,191 shares of the company's stock worth $8,049,000 after purchasing an additional 315,691 shares in the last quarter. 67.88% of the stock is owned by hedge funds and other institutional investors.

About Flagstar Bank, National Association

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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