Flagstar Bank, National Association (NYSE:FLG) Given New $15.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Flagstar’s price target to $15 from $16 while maintaining a “sector perform” rating, implying approximately 8.5% upside from the prior close. Analysts overall maintain a “Moderate Buy” consensus with an average target of $16.88.
• Flagstar reported quarterly earnings of $0.05 per share, missing estimates by $0.01, while revenue of $512 million fell short of the $540.87 million consensus but increased 4% year over year.
• The company authorized a $250 million share-repurchase program, allowing it to buy back up to 4.1% of outstanding shares; institutional investors currently own 67.88% of the stock.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) had its price target reduced by Royal Bank Of Canada from $16.00 to $15.00 in a report issued on Monday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 8.54% from the company's previous close.

Other analysts also recently issued reports about the company. TD Cowen upgraded Flagstar Bank, National Association from a "hold" rating to a "buy" rating and lifted their price target for the stock from $15.00 to $18.00 in a report on Monday, July 6th. Truist Financial upgraded Flagstar Bank, National Association from a "hold" rating to a "buy" rating and upped their price objective for the company from $13.50 to $17.00 in a research note on Tuesday, April 7th. Piper Sandler raised their target price on Flagstar Bank, National Association from $16.50 to $17.50 and gave the company an "overweight" rating in a research report on Friday, June 26th. Morgan Stanley boosted their price target on shares of Flagstar Bank, National Association from $14.00 to $15.00 and gave the stock an "equal weight" rating in a report on Monday, June 29th. Finally, Wall Street Zen upgraded shares of Flagstar Bank, National Association from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Flagstar Bank, National Association presently has a consensus rating of "Moderate Buy" and an average price target of $16.88.

Flagstar Bank, National Association Stock Down 0.2%

Shares of Flagstar Bank, National Association stock traded down $0.03 on Monday, hitting $13.82. The company had a trading volume of 571,606 shares, compared to its average volume of 5,009,939. The stock has a 50 day moving average of $14.51 and a 200-day moving average of $13.81. Flagstar Bank, National Association has a 1 year low of $10.57 and a 1 year high of $15.44. The stock has a market capitalization of $5.76 billion, a price-to-earnings ratio of 460.67 and a beta of 1.01. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.97 and a current ratio of 0.97.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.01). The company had revenue of $512.00 million for the quarter, compared to the consensus estimate of $540.87 million. Flagstar Bank, National Association had a net margin of 1.08% and a return on equity of 0.98%. Flagstar Bank, National Association's revenue was up 4.0% on a year-over-year basis. During the same quarter last year, the business posted ($0.14) earnings per share. As a group, sell-side analysts forecast that Flagstar Bank, National Association will post 0.43 earnings per share for the current year.

Flagstar Bank, National Association announced that its board has initiated a stock repurchase program on Friday, July 24th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 4.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

Institutional Trading of Flagstar Bank, National Association

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. UMB Bank n.a. grew its holdings in Flagstar Bank, National Association by 23.6% during the 4th quarter. UMB Bank n.a. now owns 3,766 shares of the company's stock valued at $47,000 after buying an additional 719 shares in the last quarter. Allworth Financial LP lifted its holdings in shares of Flagstar Bank, National Association by 8.6% in the fourth quarter. Allworth Financial LP now owns 10,994 shares of the company's stock worth $138,000 after buying an additional 869 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in shares of Flagstar Bank, National Association by 6.2% in the third quarter. Mercer Global Advisors Inc. ADV now owns 16,060 shares of the company's stock worth $185,000 after buying an additional 936 shares in the last quarter. Collar Capital Management LLC boosted its position in shares of Flagstar Bank, National Association by 0.9% in the fourth quarter. Collar Capital Management LLC now owns 117,025 shares of the company's stock valued at $1,473,000 after acquiring an additional 1,075 shares during the period. Finally, Empowered Funds LLC grew its stake in Flagstar Bank, National Association by 4.0% during the first quarter. Empowered Funds LLC now owns 29,313 shares of the company's stock valued at $386,000 after acquiring an additional 1,117 shares in the last quarter. 67.88% of the stock is currently owned by institutional investors.

About Flagstar Bank, National Association

Flagstar Financial Corporation NYSE: FLG is a bank holding company whose principal subsidiary, Flagstar Bank, provides a range of financial services across the United States. Headquartered in Troy, Michigan, Flagstar combines commercial banking, mortgage lending and servicing, and deposit products to serve individuals, businesses and public entities. As a publicly traded company, Flagstar leverages its banking charter and national mortgage platform to deliver tailored financial solutions through both digital and branch channels.

The company's mortgage business is one of the largest residential originators and servicers in the nation, offering retail, wholesale and correspondent lending channels.

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