35,981,113 Shares in Flagstar Financial, Inc. $FLG Acquired by Reverence Capital Partners L.P.

Key Points

• Reverence Capital Partners L.P. acquired a significant stake in Flagstar Financial, purchasing approximately 35.98 million shares valued at around $418 million, which now constitutes 100% of its holdings.
• Flagstar Financial's recent quarterly earnings report revealed a loss of ($0.14) earnings per share, underperforming analysts' expectations by $0.02 and marking a 26.1% decrease in revenue compared to the previous year.
• Multiple research firms have set target prices for Flagstar Financial, with Citigroup raising its target to $15.50 and maintaining a "buy" rating, while the stock holds a consensus rating of "Hold" with an average target price of $13.22.

Reverence Capital Partners L.P. purchased a new stake in Flagstar Financial, Inc. (NYSE:FLG - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 35,981,113 shares of the company's stock, valued at approximately $418,101,000. Flagstar Financial comprises about 100.0% of Reverence Capital Partners L.P.'s investment portfolio, making the stock its biggest position. Reverence Capital Partners L.P. owned about 8.67% of Flagstar Financial at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in FLG. KLP Kapitalforvaltning AS purchased a new stake in shares of Flagstar Financial in the 1st quarter valued at approximately $712,000. AE Wealth Management LLC acquired a new stake in Flagstar Financial during the 1st quarter worth approximately $216,000. Princeton Capital Management LLC purchased a new position in Flagstar Financial in the 1st quarter valued at approximately $128,000. Cetera Investment Advisers purchased a new position in Flagstar Financial in the 1st quarter valued at approximately $885,000. Finally, Neo Ivy Capital Management purchased a new stake in shares of Flagstar Financial during the first quarter worth $2,103,000. Institutional investors and hedge funds own 67.88% of the company's stock.

Analyst Upgrades and Downgrades

FLG has been the subject of several analyst reports. Stephens reissued an "equal weight" rating and set a $12.50 target price on shares of Flagstar Financial in a research note on Thursday, June 12th. Wall Street Zen cut Flagstar Financial from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. JPMorgan Chase & Co. lowered their target price on Flagstar Financial from $13.00 to $12.00 and set a "neutral" rating for the company in a research note on Tuesday, July 1st. Truist Financial lowered their target price on Flagstar Financial from $13.00 to $12.00 and set a "hold" rating for the company in a research note on Friday, July 11th. Finally, DA Davidson reissued a "buy" rating and set a $14.50 target price on shares of Flagstar Financial in a research note on Thursday, June 26th. Four research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Flagstar Financial has an average rating of "Hold" and an average price target of $13.22.

Flagstar Financial Stock Performance

Shares of FLG traded up $0.80 during midday trading on Friday, reaching $12.60. 9,849,729 shares of the stock were exchanged, compared to its average volume of 6,870,787. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.02 and a quick ratio of 1.02. Flagstar Financial, Inc. has a twelve month low of $8.56 and a twelve month high of $13.35. The business's 50-day moving average price is $11.47 and its 200 day moving average price is $11.64. The company has a market capitalization of $5.24 billion, a price-to-earnings ratio of -7.64 and a beta of 1.11.

Flagstar Financial (NYSE:FLG - Get Free Report) last released its quarterly earnings results on Friday, July 25th. The company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.02). Flagstar Financial had a negative return on equity of 6.60% and a negative net margin of 10.83%.The company had revenue of $496.00 million for the quarter, compared to analysts' expectations of $524.33 million. Flagstar Financial's quarterly revenue was down 26.1% compared to the same quarter last year. On average, sell-side analysts expect that Flagstar Financial, Inc. will post -0.31 EPS for the current fiscal year.

Flagstar Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 17th. Shareholders of record on Sunday, September 7th will be issued a $0.01 dividend. The ex-dividend date of this dividend is Friday, September 5th. This represents a $0.04 dividend on an annualized basis and a yield of 0.3%. Flagstar Financial's dividend payout ratio (DPR) is -2.42%.

Flagstar Financial Profile

Flagstar Financial, Inc operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit.