First Horizon (NYSE:FHN) Reaches New 1-Year High - Still a Buy?

Key Points

• First Horizon Corporation's stock reached a new 52-week high at $23.47, closing at $22.92, with significant trading volume of 689,770 shares.
• Analyst ratings show mixed opinions: while Barclays has an "overweight" rating with a target price of $26.00, Wall Street Zen downgraded it to "sell," indicating varying investor sentiment.
• The company recently declared a quarterly dividend of $0.15 per share, representing an annualized dividend yield of 2.6%, with a payout ratio of 38.71%.

First Horizon Corporation (NYSE:FHN - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $23.47 and last traded at $22.92, with a volume of 689770 shares changing hands. The stock had previously closed at $22.56.

Wall Street Analyst Weigh In

Several brokerages have recently commented on FHN. Wall Street Zen cut shares of First Horizon from a "hold" rating to a "sell" rating in a research report on Sunday, September 28th. Barclays lifted their target price on First Horizon from $23.00 to $26.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 8th. Cowen initiated coverage on First Horizon in a research report on Wednesday, September 24th. They set a "hold" rating on the stock. JPMorgan Chase & Co. lifted their price objective on shares of First Horizon from $23.00 to $25.00 and gave the stock a "neutral" rating in a report on Wednesday, October 1st. Finally, Bank of America increased their target price on shares of First Horizon from $26.00 to $27.00 and gave the stock a "buy" rating in a report on Thursday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $24.53.

First Horizon Stock Performance

The company's 50-day simple moving average is $22.31 and its 200-day simple moving average is $20.58. The stock has a market cap of $11.85 billion, a price-to-earnings ratio of 15.08, a price-to-earnings-growth ratio of 1.05 and a beta of 0.67. 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 (NYSE:FHN - Get Free Report) last announced its earnings results on Wednesday, July 16th. The financial services provider reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.41 by $0.04. The company had revenue of $830.19 million for the quarter, compared to analyst estimates of $832.95 million. First Horizon had a return on equity of 10.55% and a net margin of 17.10%.During the same period in the previous year, the firm earned $0.36 earnings per share. Analysts predict that First Horizon Corporation will post 1.67 EPS for the current fiscal year.

First Horizon Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were issued a dividend of $0.15 per share. The ex-dividend date was Friday, September 12th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.6%. First Horizon's payout ratio is currently 38.71%.

Insider Activity at First Horizon

In related news, COO Tammy Locascio sold 10,285 shares of the firm's stock in a transaction that occurred on Friday, July 18th. The shares were sold at an average price of $22.25, for a total value of $228,841.25. Following the completion of the transaction, the chief operating officer owned 342,051 shares of the company's stock, valued at approximately $7,610,634.75. This trade represents a 2.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP David T. Popwell sold 100,000 shares of the business's stock in a transaction on 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 sale, the executive vice president directly owned 462,581 shares in the company, valued at approximately $10,408,072.50. This trade represents a 17.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 148,295 shares of company stock valued at $3,322,663. 0.87% of the stock is owned by insiders.

Hedge Funds Weigh In On First Horizon

Large investors have recently made changes to their positions in the business. LSV Asset Management boosted its holdings in shares of First Horizon by 5.0% during the second quarter. LSV Asset Management now owns 13,458,438 shares of the financial services provider's stock worth $285,319,000 after purchasing an additional 646,060 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in First Horizon by 53.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 12,594,944 shares of the financial services provider's stock worth $244,594,000 after buying an additional 4,392,405 shares in the last quarter. Invesco Ltd. boosted its stake in shares of First Horizon by 3.8% during the 2nd quarter. Invesco Ltd. now owns 7,010,939 shares of the financial services provider's stock valued at $148,632,000 after buying an additional 255,429 shares during the period. JPMorgan Chase & Co. grew its holdings in shares of First Horizon by 45.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 6,738,428 shares of the financial services provider's stock valued at $142,855,000 after acquiring an additional 2,091,865 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of First Horizon in the second quarter worth $131,399,000. Institutional investors and hedge funds own 80.28% of the company's stock.

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.

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