First Horizon (NYSE:FHN) Issues Quarterly Earnings Results

Key Points

• First Horizon reported earnings of $0.51 per share, exceeding analysts' expectations of $0.44, representing a significant net margin of 17.10%.
• The company declared a quarterly dividend of $0.15 per share, with an annualized dividend yield of 2.6% and a payout ratio of 38.71%.
• Analysts have recently revised their ratings and target prices for First Horizon, with Royal Bank of Canada raising its target to $27.00 and giving an "outperform" rating.

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

First Horizon Price Performance

First Horizon stock opened at $23.02 on Wednesday. The company's 50 day moving average price is $22.45 and its two-hundred day moving average price is $20.73. The stock has a market cap of $11.69 billion, a P/E ratio of 14.85, a P/E/G ratio of 0.94 and a beta of 0.67. First Horizon has a 52 week low of $15.19 and a 52 week high of $23.63. 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 Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th were paid a $0.15 dividend. The ex-dividend date was Friday, September 12th. This represents a $0.60 annualized dividend and a yield of 2.6%. First Horizon's dividend payout ratio (DPR) is 38.71%.

Insiders Place Their Bets

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

Institutional Trading of First Horizon

Several hedge funds and other institutional investors have recently modified their holdings of the business. Kestra Investment Management LLC boosted its holdings in First Horizon by 873.1% in the 2nd quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider's stock worth $34,000 after buying an additional 1,458 shares during the period. Geneos Wealth Management Inc. grew its position in shares of First Horizon by 156.7% in the first quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider's stock valued at $35,000 after purchasing an additional 1,095 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of First Horizon by 88.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,189 shares of the financial services provider's stock valued at $174,000 after purchasing an additional 3,835 shares during the period. FORA Capital LLC purchased a new stake in First Horizon during the 2nd quarter worth about $384,000. Finally, Eventide Asset Management LLC boosted its stake in First Horizon by 178.5% in the 2nd quarter. Eventide Asset Management LLC now owns 30,840 shares of the financial services provider's stock worth $649,000 after purchasing an additional 19,767 shares during the period. Institutional investors own 80.28% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Barclays lifted their target price on shares of First Horizon from $26.00 to $29.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 8th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of First Horizon in a research note on Wednesday, October 8th. JPMorgan Chase & Co. increased their price target on First Horizon from $23.00 to $25.00 and gave the stock a "neutral" rating in a report on Wednesday, October 1st. Evercore ISI boosted their target price on shares of First Horizon from $25.00 to $26.00 and gave the company an "outperform" rating in a research report on Tuesday, September 30th. Finally, Wall Street Zen upgraded shares of First Horizon from a "sell" rating to a "hold" rating in a report on Saturday. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, First Horizon has an average rating of "Moderate Buy" and a consensus target price of $24.94.

About First Horizon

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.