Flagstar Bank, National Association (NYSE:FLG) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Flagstar Bank to “Sell” from “Hold,” although the broader analyst consensus remains “Moderate Buy,” with nine Buy, three Hold, and one Sell rating and a $16.79 average price target.
• Flagstar reported quarterly EPS of $0.05, missing the $0.06 consensus estimate, while revenue of $512 million also fell short of the $539.34 million forecast.
• The board authorized a $250 million share-repurchase program, allowing the company to buy back up to 4.1% of its outstanding shares; institutional investors own 67.88% of the stock.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Other equities research analysts also recently issued research reports about the company. TD Cowen cut their price objective on Flagstar Bank, National Association from $18.00 to $17.00 and set a "buy" rating for the company in a report on Monday, July 27th. DA Davidson restated a "buy" rating and set a $17.00 target price on shares of Flagstar Bank, National Association in a report on Monday, July 27th. Royal Bank Of Canada dropped their price target on shares of Flagstar Bank, National Association from $16.00 to $15.00 and set a "sector perform" rating on the stock in a research report on Monday, July 27th. JPMorgan Chase & Co. increased their price target on shares of Flagstar Bank, National Association from $15.50 to $17.00 and gave the company a "neutral" rating in a research note on Wednesday, July 1st. Finally, Citigroup lifted their price objective on shares of Flagstar Bank, National Association from $17.00 to $18.00 and gave the company a "buy" rating in a research report on Thursday, June 25th. Nine analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $16.79.

Flagstar Bank, National Association Price Performance

Shares of NYSE FLG opened at $13.98 on Friday. The company has a debt-to-equity ratio of 1.43, a current ratio of 0.97 and a quick ratio of 0.97. The business has a 50-day moving average of $14.58 and a 200-day moving average of $13.89. The stock has a market capitalization of $5.83 billion, a price-to-earnings ratio of 466.17 and a beta of 1.01. Flagstar Bank, National Association has a fifty-two week low of $10.57 and a fifty-two week high of $15.44.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last released its earnings results on Friday, July 24th. The company reported $0.05 earnings per share (EPS) 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 $539.34 million. Flagstar Bank, National Association had a return on equity of 0.98% and a net margin of 1.08%.The business's revenue was up 4.0% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.14) EPS. As a group, sell-side analysts predict that Flagstar Bank, National Association will post 0.35 earnings per share for the current fiscal year.

Flagstar Bank, National Association announced that its Board of Directors has initiated a stock repurchase plan on Friday, July 24th that allows the company to buyback $250.00 million in shares. This buyback authorization allows the company to buy up to 4.1% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Flagstar Bank, National Association

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FLG. Geode Capital Management LLC raised its position in shares of Flagstar Bank, National Association by 6.7% in the fourth quarter. Geode Capital Management LLC now owns 7,487,034 shares of the company's stock valued at $94,277,000 after purchasing an additional 467,053 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Flagstar Bank, National Association by 9.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,731,631 shares of the company's stock worth $88,645,000 after buying an additional 569,003 shares during the period. Alliancebernstein L.P. grew its stake in Flagstar Bank, National Association by 1,130.1% in the 2nd quarter. Alliancebernstein L.P. now owns 6,635,962 shares of the company's stock valued at $70,341,000 after buying an additional 6,096,512 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Flagstar Bank, National Association by 60.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 4,626,146 shares of the company's stock valued at $58,243,000 after buying an additional 1,750,889 shares during the last quarter. Finally, Alyeska Investment Group L.P. acquired a new stake in Flagstar Bank, National Association during the fourth quarter worth approximately $53,216,000. 67.88% of the stock is 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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