First Horizon (NYSE:FHN) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• First Horizon reported quarterly EPS of $0.53, beating the consensus of $0.49 by $0.04, while revenue came in at $865.0M versus estimates of $869.49M.
• The company raised its quarterly dividend to $0.17 (annualized $0.68), implying a yield of about 2.8% and a payout ratio near 36%.
• Analyst coverage is mixed but the consensus rating is Hold with an average price target of $26.45, following several recent price-target adjustments by major firms.

First Horizon (NYSE:FHN - Get Free Report) posted its quarterly earnings results on Wednesday. The financial services provider reported $0.53 EPS for the quarter, beating the consensus estimate of $0.49 by $0.04, FiscalAI reports. The business had revenue of $865.00 million during the quarter, compared to analysts' expectations of $869.49 million. First Horizon had a return on equity of 11.21% and a net margin of 19.67%.

First Horizon Price Performance

Shares of NYSE:FHN opened at $24.24 on Wednesday. The company has a market cap of $11.58 billion, a P/E ratio of 12.89, a P/E/G ratio of 0.95 and a beta of 0.62. 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 has a 52 week low of $16.44 and a 52 week high of $26.56. The business has a fifty day simple moving average of $23.64 and a 200-day simple moving average of $23.15.

First Horizon Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th were issued a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 2.8%. This is a positive change from First Horizon's previous quarterly dividend of $0.15. The ex-dividend date of this dividend was Friday, March 13th. First Horizon's payout ratio is presently 36.17%.

Analyst Ratings Changes

Several analysts have recently commented on the company. JPMorgan Chase & Co. reduced their price target on First Horizon from $28.00 to $26.00 and set a "neutral" rating for the company in a report on Wednesday, April 1st. Citigroup lifted their price objective on First Horizon from $28.00 to $28.50 and gave the stock a "buy" rating in a report on Tuesday, February 24th. Barclays reduced their price objective on First Horizon from $30.00 to $29.00 and set an "overweight" rating for the company in a report on Tuesday, April 7th. Weiss Ratings cut First Horizon from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, March 17th. Finally, TD Cowen lifted their price objective on First Horizon from $26.00 to $27.00 and gave the stock a "hold" rating in a report on Friday, January 16th. Eight research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, First Horizon has a consensus rating of "Hold" and an average price target of $26.45.

Insider Activity at First Horizon

In other news, EVP Anthony J. Restel sold 5,719 shares of First Horizon stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $24.35, for a total value of $139,257.65. Following the completion of the sale, the executive vice president owned 619,132 shares of the company's stock, valued at $15,075,864.20. The trade was a 0.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.91% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On First Horizon

Hedge funds and other institutional investors have recently made changes to their positions in the business. Kestra Investment Management LLC grew its position in First Horizon by 873.1% during the second quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 1,458 shares during the period. Geneos Wealth Management Inc. grew its position in First Horizon by 156.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider's stock valued at $35,000 after acquiring an additional 1,095 shares during the period. Los Angeles Capital Management LLC purchased a new stake in First Horizon during the fourth quarter valued at about $51,000. Triumph Capital Management purchased a new stake in First Horizon during the third quarter valued at about $77,000. Finally, Wilkerson Advisory Group LLC purchased a new stake in First Horizon during the fourth quarter valued at about $86,000. Hedge funds and other institutional investors own 80.28% of the company's stock.

First Horizon Company Profile

First Horizon Corporation, headquartered in Memphis, Tennessee, is a diversified financial services company providing an array of retail, commercial and wealth management solutions. As the largest bank-based financial services firm in Tennessee, First Horizon operates through a network of branches and digital platforms across the Southeastern United States, offering personal and business banking, mortgage origination and servicing, payment solutions and treasury management services.

Tracing its origins to the First National Bank of Memphis established in 1864, First Horizon has grown through strategic acquisitions and organic expansion to serve customers in Tennessee, Texas, North Carolina, South Carolina, Georgia and Florida.

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