First Horizon (NYSE:FHN) Shares Gap Down - Time to Sell?

Key Points

• First Horizon shares gapped down before trading on Wednesday, opening below the prior close and ending around $24.64, down about 3.3% intraday.
• Despite the drop, the company’s latest earnings beat expectations, with Q2 EPS of $0.54 versus the $0.52 consensus and revenue of $890 million above estimates.
• Wall Street sentiment is mixed: the stock has an average Hold rating with a consensus price target of $27.12, while analysts’ views range from Buy to Sell.

First Horizon Corporation (NYSE:FHN - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $25.72, but opened at $24.80. First Horizon shares last traded at $24.6420, with a volume of 1,639,862 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Weiss Ratings raised shares of First Horizon from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, June 8th. Keefe, Bruyette & Woods raised their price objective on First Horizon from $25.00 to $26.00 and gave the company a "market perform" rating in a report on Thursday, April 16th. Evercore set a $27.00 target price on First Horizon in a research report on Monday, July 6th. Wall Street Zen lowered First Horizon from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Finally, DA Davidson reissued a "neutral" rating and set a $26.00 price target on shares of First Horizon in a research report on Thursday, April 16th. Nine research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $27.12.

First Horizon Stock Down 3.3%

The stock has a market cap of $11.80 billion, a P/E ratio of 12.44, a price-to-earnings-growth ratio of 1.00 and a beta of 0.60. The firm has a 50 day simple moving average of $24.72 and a 200-day simple moving average of $24.25. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.15.

First Horizon (NYSE:FHN - Get Free Report) last issued its earnings results on Wednesday, July 15th. The financial services provider reported $0.54 EPS for the quarter, topping the consensus estimate of $0.52 by $0.02. The company had revenue of $890.00 million during the quarter, compared to the consensus estimate of $878.42 million. First Horizon had a return on equity of 11.65% and a net margin of 20.54%.During the same period in the previous year, the company posted $0.45 EPS. On average, equities research analysts forecast that First Horizon Corporation will post 2.15 earnings per share for the current fiscal year.

First Horizon Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th were given a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Friday, June 12th. First Horizon's payout ratio is 34.00%.

Hedge Funds Weigh In On First Horizon

Large investors have recently modified their holdings of the stock. North Reef Capital Management LP boosted its holdings in shares of First Horizon by 25.5% during the 1st quarter. North Reef Capital Management LP now owns 14,453,208 shares of the financial services provider's stock worth $328,955,000 after buying an additional 2,936,368 shares during the period. Invesco Ltd. raised its holdings in First Horizon by 5.6% in the 4th quarter. Invesco Ltd. now owns 8,033,759 shares of the financial services provider's stock valued at $192,007,000 after acquiring an additional 426,951 shares during the period. Norges Bank acquired a new stake in First Horizon during the fourth quarter worth approximately $153,942,000. William Blair Investment Management LLC lifted its position in First Horizon by 2.2% during the fourth quarter. William Blair Investment Management LLC now owns 5,336,021 shares of the financial services provider's stock worth $127,531,000 after acquiring an additional 116,191 shares during the last quarter. Finally, Morgan Stanley boosted its holdings in shares of First Horizon by 10.4% during the fourth quarter. Morgan Stanley now owns 5,212,543 shares of the financial services provider's stock worth $124,580,000 after acquiring an additional 491,464 shares during the period. 80.28% of the stock is owned by institutional investors.

About First Horizon

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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