First Horizon (NYSE:FHN) Hits New 1-Year High on Better-Than-Expected Earnings

Key Points

• First Horizon's stock price reached a new 52-week high of $23.79 after the company reported earnings of $0.51 per share, exceeding analysts' expectations of $0.45.
• The company announced a quarterly dividend of $0.15, representing an annual yield of 2.9% with a payout ratio of 38.71%.
• Several analysts raised their price targets for First Horizon, with Bank of America setting a new target of $27.00 and maintaining a "buy" rating for the stock.

First Horizon Corporation (NYSE:FHN - Get Free Report)'s share price reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $23.79 and last traded at $23.62, with a volume of 20524 shares trading hands. The stock had previously closed at $23.02.

The financial services provider reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.06. First Horizon had a net margin of 17.10% and a return on equity of 10.55%. The firm's quarterly revenue was up 7.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.42 EPS.

First Horizon Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were given a $0.15 dividend. The ex-dividend date was Friday, September 12th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.9%. First Horizon's payout ratio is 38.71%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on FHN shares. JPMorgan Chase & Co. boosted their price target on shares of First Horizon from $23.00 to $25.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 1st. Weiss Ratings reiterated a "hold (c+)" rating on shares of First Horizon in a research report on Wednesday, October 8th. Bank of America boosted their target price on shares of First Horizon from $26.00 to $27.00 and gave the company a "buy" rating in a research report on Thursday, July 17th. Wells Fargo & Company boosted their price target on shares of First Horizon from $23.00 to $25.00 and gave the company an "equal weight" rating in a research note on Monday, September 29th. Finally, Raymond James Financial set a $25.00 price target on shares of First Horizon and gave the company an "outperform" rating in a research note on Tuesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, First Horizon presently has an average rating of "Moderate Buy" and a consensus price target of $24.94.

Insider Activity

In related news, COO Tammy Locascio sold 10,285 shares of the stock in a transaction dated Friday, July 18th. The shares were sold at an average price of $22.25, for a total transaction of $228,841.25. Following the completion of the transaction, the chief operating officer owned 342,051 shares in the company, valued at approximately $7,610,634.75. This represents a 2.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP David T. Popwell sold 100,000 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $22.50, for a total transaction of $2,250,000.00. Following the transaction, the executive vice president owned 462,581 shares of the company's stock, valued at approximately $10,408,072.50. The trade was a 17.78% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 148,295 shares of company stock valued at $3,322,663. 1.04% of the stock is owned by company insiders.

Institutional Investors Weigh In On First Horizon

A number of institutional investors and hedge funds have recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. increased its position in shares of First Horizon by 2.0% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 77,020 shares of the financial services provider's stock worth $1,496,000 after purchasing an additional 1,481 shares during the last quarter. Cerity Partners LLC grew its holdings in shares of First Horizon by 22.0% in the first quarter. Cerity Partners LLC now owns 126,555 shares of the financial services provider's stock worth $2,458,000 after purchasing an additional 22,852 shares during the last quarter. Brown Advisory Inc. grew its holdings in shares of First Horizon by 13.3% in the first quarter. Brown Advisory Inc. now owns 69,033 shares of the financial services provider's stock worth $1,341,000 after purchasing an additional 8,110 shares during the last quarter. Cary Street Partners Financial LLC grew its holdings in shares of First Horizon by 713.3% in the first quarter. Cary Street Partners Financial LLC now owns 151,053 shares of the financial services provider's stock worth $2,933,000 after purchasing an additional 132,481 shares during the last quarter. Finally, Baird Financial Group Inc. bought a new position in shares of First Horizon in the first quarter worth approximately $7,506,000. 80.28% of the stock is owned by hedge funds and other institutional investors.

First Horizon Trading Down 11.5%

The firm has a market cap of $10.34 billion, a P/E ratio of 13.47, a PEG ratio of 0.94 and a beta of 0.67. The firm's fifty day moving average is $22.45 and its two-hundred day moving average is $20.73. The company has a quick ratio of 0.95, a current ratio of 0.96 and a debt-to-equity ratio of 0.15.

First Horizon Company Profile

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments.

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