Flagstar Bank, National Association Sees Unusually Large Options Volume (NYSE:FLG)

Key Points

• Unusual options activity: Investors bought 50,725 call options on FLG on Thursday, a 552% increase versus the average call volume, signaling unusually strong bullish interest.
• Analyst sentiment improving: Multiple brokerages have raised ratings or price targets recently, leaving FLG with a consensus "Moderate Buy" and an average target price of $15.18.
• Mixed fundamentals: Flagstar beat quarterly EPS ($0.06 vs. $0.02) and revenue estimates but still shows negative ROE/net margin and analysts forecast -$0.31 EPS for the year; the stock trades around $14.27 with a tiny $0.01 quarterly dividend.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) was the recipient of some unusual options trading on Thursday. Investors bought 50,725 call options on the company. This is an increase of 552% compared to the average volume of 7,774 call options.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on FLG. Truist Financial raised Flagstar Bank, National Association from a "hold" rating to a "buy" rating and lifted their price target for the company from $13.50 to $17.00 in a research note on Tuesday, April 7th. JPMorgan Chase & Co. lifted their price target on Flagstar Bank, National Association from $14.50 to $15.00 and gave the company a "neutral" rating in a research note on Monday, February 2nd. Morgan Stanley lifted their price target on Flagstar Bank, National Association from $14.00 to $16.00 and gave the company an "equal weight" rating in a research note on Monday, March 2nd. Cantor Fitzgerald lifted their price target on Flagstar Bank, National Association from $15.00 to $16.00 and gave the company an "overweight" rating in a research note on Friday, December 19th. Finally, Piper Sandler began coverage on Flagstar Bank, National Association in a research note on Monday, March 16th. They set an "overweight" rating and a $16.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $15.18.

Flagstar Bank, National Association Trading Up 1.0%

Shares of Flagstar Bank, National Association stock traded up $0.14 during midday trading on Thursday, reaching $14.27. The company had a trading volume of 1,196,283 shares, compared to its average volume of 5,230,474. The stock has a fifty day moving average price of $13.32 and a 200 day moving average price of $12.62. The company has a debt-to-equity ratio of 1.59, a current ratio of 0.92 and a quick ratio of 0.91. The firm has a market cap of $5.93 billion, a PE ratio of -27.97 and a beta of 1.02. Flagstar Bank, National Association has a fifty-two week low of $10.27 and a fifty-two week high of $14.53.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last posted its quarterly earnings data on Friday, January 30th. The company reported $0.06 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.04. The company had revenue of $548.00 million for the quarter, compared to analyst estimates of $533.00 million. Flagstar Bank, National Association had a negative return on equity of 1.60% and a negative net margin of 3.68%.The firm's quarterly revenue was down 10.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.41) earnings per share. On average, equities analysts anticipate that Flagstar Bank, National Association will post -0.31 earnings per share for the current year.

Flagstar Bank, National Association Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Shareholders of record on Saturday, March 7th were paid a $0.01 dividend. The ex-dividend date of this dividend was Friday, March 6th. This represents a $0.04 annualized dividend and a yield of 0.3%. Flagstar Bank, National Association's payout ratio is -7.84%.

Hedge Funds Weigh In On Flagstar Bank, National Association

Institutional investors have recently added to or reduced their stakes in the business. DV Equities LLC acquired a new position in Flagstar Bank, National Association in the fourth quarter valued at approximately $25,000. Ameritas Advisory Services LLC acquired a new position in Flagstar Bank, National Association in the third quarter valued at approximately $33,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in Flagstar Bank, National Association in the fourth quarter valued at approximately $34,000. Litman Gregory Wealth Management LLC acquired a new position in Flagstar Bank, National Association in the fourth quarter valued at approximately $34,000. Finally, Advisory Services Network LLC acquired a new position in Flagstar Bank, National Association in the third quarter valued at approximately $35,000. 67.88% of the stock is owned by institutional investors and hedge funds.

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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