Bank of America Corp DE Trims Stock Holdings in Flagstar Bank, National Association $FLG

Key Points

• Bank of America reduced its Flagstar stake by 19.4%, selling 600,029 shares and retaining 2.49 million shares worth approximately $32.8 million. Institutional investors own 67.88% of FLG, with several other firms initiating new positions.
• Flagstar’s latest quarterly results fell short of expectations, reporting $0.05 in EPS versus the $0.06 consensus and revenue of $512 million versus $539.34 million expected. Revenue nonetheless increased 4% year over year.
• The board authorized a $250 million share-repurchase program, covering up to 4.1% of outstanding shares. Analysts maintain a “Moderate Buy” consensus with an average price target of $16.79, compared with a recent share price of $14.25.

Bank of America Corp DE decreased its holdings in shares of Flagstar Bank, National Association (NYSE:FLG - Free Report) by 19.4% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,488,133 shares of the company's stock after selling 600,029 shares during the quarter. Bank of America Corp DE owned about 0.60% of Flagstar Bank, National Association worth $32,769,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also recently made changes to their positions in FLG. AQR Capital Management LLC bought a new position in Flagstar Bank, National Association in the 1st quarter worth about $2,039,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Flagstar Bank, National Association in the first quarter worth about $1,754,000. Goldman Sachs Group Inc. bought a new position in shares of Flagstar Bank, National Association in the first quarter valued at approximately $21,022,000. United Services Automobile Association bought a new position in shares of Flagstar Bank, National Association in the first quarter valued at approximately $219,000. Finally, Empowered Funds LLC purchased a new position in Flagstar Bank, National Association during the first quarter valued at approximately $516,000. 67.88% of the stock is owned by institutional investors.

Flagstar Bank, National Association Price Performance

Shares of Flagstar Bank, National Association stock opened at $14.25 on Friday. Flagstar Bank, National Association has a 52-week low of $10.57 and a 52-week high of $15.44. The stock has a market capitalization of $5.91 billion, a price-to-earnings ratio of 474.87 and a beta of 1.01. The company has a fifty day moving average of $14.60 and a 200-day moving average of $13.93. 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). The business had revenue of $512.00 million for the quarter, compared to the consensus estimate of $539.34 million. Flagstar Bank, National Association had a net margin of 1.08% and a return on equity of 0.98%. Flagstar Bank, National Association's revenue for the quarter was up 4.0% on a year-over-year basis. During the same period in the prior year, the business posted ($0.14) EPS. Equities research analysts expect that Flagstar Bank, National Association will post 0.35 EPS for the current year.

Flagstar Bank, National Association declared that its Board of Directors has approved a share buyback program on Friday, July 24th that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 4.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Flagstar Bank, National Association Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Monday, September 7th will be issued a dividend of $0.01 per share. The ex-dividend date is Friday, September 4th. This represents a $0.04 annualized dividend and a yield of 0.3%. Flagstar Bank, National Association's dividend payout ratio is currently 133.33%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Weiss Ratings downgraded shares of Flagstar Bank, National Association from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, August 3rd. JPMorgan Chase & Co. upped their target price on Flagstar Bank, National Association from $15.50 to $17.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 1st. Wall Street Zen raised Flagstar Bank, National Association from a "sell" rating to a "hold" rating in a report on Sunday. 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. Finally, Piper Sandler raised their target price on shares of Flagstar Bank, National Association from $16.50 to $17.50 and gave the company an "overweight" rating in a research note on Friday, June 26th. Nine research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $16.79.

Flagstar Bank, National Association 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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