Rakuten Investment Management Inc. Makes New $4.23 Million Investment in Regions Financial Corporation $RF

Key Points

• Rakuten Investment Management acquired 139,633 shares of Regions Financial in the second quarter, valued at approximately $4.23 million. Institutional investors collectively own 79.39% of the bank’s stock.
• Regions Financial exceeded quarterly earnings expectations, reporting $0.68 EPS versus the $0.63 consensus estimate, while revenue reached $1.95 billion and net margin stood at 23.33%.
• The company increased its quarterly dividend from $0.27 to $0.30 per share, implying a 4.0% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $32.24.

Rakuten Investment Management Inc. acquired a new position in Regions Financial Corporation (NYSE:RF - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 139,633 shares of the bank's stock, valued at approximately $4,227,000.

Several other institutional investors have also recently modified their holdings of the company. WPG Advisers LLC lifted its position in Regions Financial by 83.5% in the 2nd quarter. WPG Advisers LLC now owns 813 shares of the bank's stock worth $25,000 after buying an additional 370 shares during the last quarter. Keating Financial Advisory Services Inc. bought a new position in Regions Financial during the second quarter valued at approximately $25,000. Darwin Wealth Management LLC bought a new position in Regions Financial during the second quarter valued at approximately $25,000. Trust Co. of Vermont purchased a new position in shares of Regions Financial during the second quarter worth approximately $26,000. Finally, SouthState Bank Corp raised its stake in shares of Regions Financial by 94.1% during the fourth quarter. SouthState Bank Corp now owns 1,110 shares of the bank's stock worth $30,000 after acquiring an additional 538 shares in the last quarter. 79.39% of the stock is currently owned by institutional investors.

Regions Financial Trading Up 0.1%

NYSE:RF opened at $30.35 on Monday. The firm has a market capitalization of $25.86 billion, a P/E ratio of 12.39, a P/E/G ratio of 1.16 and a beta of 1.00. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.26. The company has a fifty day moving average of $30.84 and a 200 day moving average of $28.80. Regions Financial Corporation has a 52 week low of $22.70 and a 52 week high of $32.47.

Regions Financial (NYSE:RF - Get Free Report) last announced its quarterly earnings results on Friday, July 17th. The bank reported $0.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.63 by $0.05. Regions Financial had a net margin of 23.33% and a return on equity of 12.88%. The business had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same quarter last year, the firm earned $0.60 EPS. The company's revenue was up .1% on a year-over-year basis. On average, research analysts predict that Regions Financial Corporation will post 2.63 earnings per share for the current year.

Regions Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a $0.30 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This is a boost from Regions Financial's previous quarterly dividend of $0.27. This represents a $1.20 annualized dividend and a dividend yield of 4.0%. Regions Financial's payout ratio is 48.98%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on RF. JPMorgan Chase & Co. upped their price objective on shares of Regions Financial from $31.50 to $32.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Morgan Stanley boosted their price target on shares of Regions Financial from $34.00 to $35.00 and gave the stock an "equal weight" rating in a research note on Monday, June 29th. UBS Group upped their price target on shares of Regions Financial from $29.00 to $33.00 and gave the company a "neutral" rating in a research report on Tuesday, July 7th. Evercore reaffirmed an "underperform" rating and set a $31.00 price objective on shares of Regions Financial in a research note on Monday, July 6th. Finally, Keefe, Bruyette & Woods lifted their price objective on Regions Financial from $32.00 to $33.00 and gave the stock a "market perform" rating in a report on Monday, July 20th. Six investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, Regions Financial has an average rating of "Hold" and a consensus target price of $32.24.

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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