Flagstar Bank, National Association (NYSE:FLG) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Thirteen brokerages give Flagstar Bank a consensus “Moderate Buy” rating, with nine buys, three holds and one sell. The average 12-month price target is $16.79 versus the stock’s $14.25 opening price.
• Institutional ownership remains substantial: Hedge funds and other institutional investors own 67.88% of FLG, with several major firms recently increasing their positions, including AllianceBernstein, Goldman Sachs and Dimensional Fund Advisors.
• Quarterly results fell slightly short of expectations, with adjusted EPS of $0.05 versus a $0.06 estimate and revenue of $512 million versus $539.34 million expected. The company also approved a $250 million share-repurchase program and declared a quarterly dividend of $0.01 per share.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the thirteen research firms that are currently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and nine have issued a buy recommendation on the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $16.7917.

Several brokerages have recently commented on FLG. Citigroup upped 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 note on Thursday, June 25th. Barclays raised their target price on Flagstar Bank, National Association from $16.00 to $17.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 7th. UBS Group assumed coverage on Flagstar Bank, National Association in a research report on Tuesday, July 7th. They set a "buy" rating and a $18.00 price target for the company. TD Cowen dropped 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. Finally, JPMorgan Chase & Co. lifted their price objective on Flagstar Bank, National Association from $15.50 to $17.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 1st.

Institutional Inflows and Outflows

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

Flagstar Bank, National Association Stock Down 0.0%

Shares of Flagstar Bank, National Association stock opened at $14.25 on Monday. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.90 and a current ratio of 0.90. Flagstar Bank, National Association has a 52-week low of $10.57 and a 52-week high of $15.44. The stock has a market capitalization of $5.91 billion, a price-to-earnings ratio of 474.87 and a beta of 1.01. The company's 50 day moving average price is $14.60 and its 200-day moving average price is $13.94.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last posted its quarterly earnings results on Friday, July 24th. The company reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.01). The firm had revenue of $512.00 million for the quarter, compared to the consensus estimate of $539.34 million. Flagstar Bank, National Association had a net margin of 1.08% and a return on equity of 0.98%. The company's quarterly revenue was up 4.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.14) earnings per share. Equities research analysts forecast that Flagstar Bank, National Association will post 0.35 EPS for the current year.

Flagstar Bank, National Association Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Monday, September 7th will be paid a $0.01 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.04 dividend on an annualized basis and a yield of 0.3%. Flagstar Bank, National Association's dividend payout ratio (DPR) is presently 133.33%.

Flagstar Bank, National Association announced that its Board of Directors has approved a share repurchase program on Friday, July 24th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the company to buy up to 4.1% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Flagstar Bank, National Association Company Profile

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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