First Horizon Sees Unusually High Options Volume (NYSE:FHN)

Key Points

• First Horizon saw unusually heavy options activity, with investors buying 10,979 call options — about 251% above its normal daily volume.
• The stock slipped to $24.92 on Wednesday, though the company’s latest earnings topped expectations, posting $0.54 EPS on revenue of $890 million.
• Analysts currently have a mixed but cautious view: the stock carries an average Hold rating with a consensus price target of $27.12, while the company also pays a quarterly dividend yielding about 2.7%.

First Horizon Corporation (NYSE:FHN - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock investors bought 10,979 call options on the company. This represents an increase of 251% compared to the typical daily volume of 3,129 call options.

Analyst Ratings Changes

Several brokerages have recently commented on FHN. DA Davidson restated a "neutral" rating and set a $26.00 price target on shares of First Horizon in a research note on Thursday, April 16th. JPMorgan Chase & Co. increased their target price on shares of First Horizon from $26.00 to $28.50 and gave the stock a "neutral" rating in a report on Wednesday, July 1st. Truist Financial raised their target price on shares of First Horizon from $26.00 to $27.00 and gave the company a "hold" rating in a research report on Friday, July 10th. Raymond James Financial boosted their price target on shares of First Horizon from $26.00 to $28.00 and gave the company an "outperform" rating in a report on Wednesday, July 1st. Finally, 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. Nine equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $27.12.

First Horizon Stock Performance

Shares of NYSE:FHN traded down $0.80 on Wednesday, hitting $24.92. 7,556,853 shares of the company were exchanged, compared to its average volume of 5,359,759. The firm has a market capitalization of $11.83 billion, a P/E ratio of 12.46, a price-to-earnings-growth ratio of 1.00 and a beta of 0.60. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.15. First Horizon has a 1-year low of $19.80 and a 1-year high of $26.56. The stock's 50 day moving average price is $24.72 and its 200 day moving average price is $24.25.

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, beating analysts' consensus estimates of $0.52 by $0.02. The firm had revenue of $890.00 million for the quarter, compared to analyst estimates of $878.42 million. First Horizon had a return on equity of 11.65% and a net margin of 20.54%.During the same quarter in the prior year, the firm earned $0.45 earnings per share. Sell-side analysts predict that First Horizon will post 2.15 EPS for the current year.

First Horizon Dividend Announcement

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Kestra Investment Management LLC boosted its stake in First Horizon by 873.1% during the 2nd quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider's stock worth $34,000 after purchasing an additional 1,458 shares during the last quarter. Geneos Wealth Management Inc. raised 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 buying an additional 1,095 shares during the last quarter. Cary Street Partners Investment Advisory LLC raised its position in shares of First Horizon by 1,348.2% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 2,013 shares of the financial services provider's stock valued at $48,000 after buying an additional 1,874 shares during the last quarter. Basecamp Wealth Advisors LLC lifted its stake in shares of First Horizon by 56.2% in the first quarter. Basecamp Wealth Advisors LLC now owns 2,073 shares of the financial services provider's stock worth $47,000 after buying an additional 746 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of First Horizon in the fourth quarter valued at approximately $51,000. 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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