Brean Capital Initiates Coverage on Regions Financial (NYSE:RF)

Key Points

• Brean Capital initiated coverage on Regions Financial with a neutral rating; across analysts the stock has a consensus Hold rating and a $29.97 average price target (mix of 6 Buy, 9 Hold, 3 Sell).
• Shares fell about 3.4% to $25.32 on heavy volume, with a market cap near $21.9 billion and a P/E of 11.06, trading between a 1‑year low of $17.74 and high of $31.53.
• The board approved a $3.00 billion share repurchase (up to ~12.9% of shares), while the most recent quarter missed EPS ($0.57 vs. $0.61) and slightly missed revenue expectations, likely contributing to near‑term pressure.

Analysts at Brean Capital began coverage on shares of Regions Financial (NYSE:RF - Get Free Report) in a report released on Thursday. The firm set a "neutral" rating on the bank's stock.

Several other research analysts have also weighed in on the company. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $32.00 target price on shares of Regions Financial in a research report on Tuesday, January 6th. Wells Fargo & Company downgraded Regions Financial from an "equal weight" rating to an "underweight" rating and set a $30.00 price objective on the stock. in a report on Friday, January 16th. Weiss Ratings reiterated a "buy (b)" rating on shares of Regions Financial in a research note on Monday, December 29th. Wall Street Zen lowered shares of Regions Financial from a "hold" rating to a "sell" rating in a research note on Saturday, December 13th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $32.00 price objective on shares of Regions Financial in a research note on Tuesday, March 3rd. Six investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $29.97.

Regions Financial Stock Down 3.4%

NYSE:RF traded down $0.89 on Thursday, hitting $25.32. 24,667,079 shares of the company's stock traded hands, compared to its average volume of 15,259,110. The company has a market cap of $21.86 billion, a PE ratio of 11.06, a price-to-earnings-growth ratio of 0.95 and a beta of 1.02. Regions Financial has a 1 year low of $17.74 and a 1 year high of $31.53. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.23. The firm has a 50-day moving average price of $28.64 and a 200-day moving average price of $26.90.

Regions Financial (NYSE:RF - Get Free Report) last announced its quarterly earnings data on Friday, January 16th. The bank reported $0.57 EPS for the quarter, missing analysts' consensus estimates of $0.61 by ($0.04). Regions Financial had a net margin of 22.44% and a return on equity of 12.55%. The company had revenue of $1.92 billion for the quarter, compared to analysts' expectations of $1.94 billion. During the same period in the previous year, the firm posted $0.56 earnings per share. The business's revenue for the quarter was up 5.8% on a year-over-year basis. Equities analysts anticipate that Regions Financial will post 2.26 EPS for the current fiscal year.

Regions Financial declared that its Board of Directors has approved a share repurchase program on Wednesday, December 10th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the bank to repurchase up to 12.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Activity

In related news, EVP William D. Ritter sold 36,000 shares of the business's stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $28.78, for a total transaction of $1,036,080.00. Following the transaction, the executive vice president owned 17,569 shares of the company's stock, valued at approximately $505,635.82. The trade was a 67.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.29% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Charles Schwab Investment Management Inc. increased its stake in Regions Financial by 0.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 31,837,339 shares of the bank's stock valued at $862,792,000 after acquiring an additional 215,061 shares during the period. Geode Capital Management LLC grew its holdings in shares of Regions Financial by 0.5% during the 2nd quarter. Geode Capital Management LLC now owns 23,794,677 shares of the bank's stock worth $557,370,000 after purchasing an additional 109,549 shares in the last quarter. Victory Capital Management Inc. increased its position in shares of Regions Financial by 68.9% during the fourth quarter. Victory Capital Management Inc. now owns 22,836,163 shares of the bank's stock valued at $618,860,000 after purchasing an additional 9,312,449 shares during the period. Invesco Ltd. raised its stake in shares of Regions Financial by 3.1% in the fourth quarter. Invesco Ltd. now owns 19,348,237 shares of the bank's stock valued at $524,337,000 after purchasing an additional 573,659 shares in the last quarter. Finally, Morgan Stanley lifted its position in Regions Financial by 1.3% in the fourth quarter. Morgan Stanley now owns 18,356,400 shares of the bank's stock worth $497,459,000 after purchasing an additional 231,924 shares during the period. Institutional investors own 79.39% of the company's stock.

Regions Financial Company Profile

Regions Financial Corporation NYSE: RF is a U.S. bank holding company headquartered in Birmingham, Alabama, that provides a broad range of banking and financial services. Its primary banking subsidiary, Regions Bank, serves retail and commercial customers through a combination of branch and ATM networks, digital channels and relationship-based delivery. The company offers deposit accounts, consumer and commercial loans, mortgage origination and servicing, and payment and treasury services.

In addition to core banking, Regions offers wealth management, trust and brokerage services, insurance solutions, and capital markets capabilities to corporate and institutional clients.

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