Flagstar Financial (NYSE:FLG) Shares Gap Down After Earnings Miss

Key Points

• Flagstar Financial shares gapped down, opening at $11.27 after reporting quarterly earnings that missed expectations, with an EPS of ($0.14) compared to the estimated ($0.12).
• The company's quarterly revenue declined by 26.1% year-over-year, reflecting challenges in its financial performance.
• Analysts have provided mixed ratings, with recent targets set at $12.00 to $15.50, as one firm downgraded the stock from "hold" to "sell."
• Institutional investors own 67.88% of Flagstar Financial, indicating significant institutional interest amid the downturn.

Flagstar Financial, Inc. (NYSE:FLG - Get Free Report) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $12.05, but opened at $11.27. Flagstar Financial shares last traded at $11.27, with a volume of 2,880,332 shares traded.

The company reported ($0.14) earnings per share for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.02). Flagstar Financial had a negative return on equity of 9.68% and a negative net margin of 14.21%. The firm's quarterly revenue was down 26.1% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on FLG shares. Truist Financial set a $12.00 price target on Flagstar Financial and gave the company a "hold" rating in a research report on Friday, July 11th. Jefferies Financial Group assumed coverage on Flagstar Financial in a research note on Wednesday, May 21st. They issued a "buy" rating and a $15.00 price objective for the company. Citigroup upped their price objective on Flagstar Financial from $15.00 to $15.50 and gave the company a "buy" rating in a research note on Thursday, May 15th. Stephens restated an "equal weight" rating and issued a $12.50 price objective on shares of Flagstar Financial in a research note on Thursday, June 12th. Finally, Wall Street Zen downgraded Flagstar Financial from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and four have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $13.22.

Institutional Investors Weigh In On Flagstar Financial

A number of large investors have recently made changes to their positions in the business. UMB Bank n.a. bought a new stake in shares of Flagstar Financial in the 2nd quarter worth approximately $33,000. Marquette Asset Management LLC bought a new stake in shares of Flagstar Financial in the 2nd quarter worth approximately $35,000. American National Bank & Trust bought a new stake in shares of Flagstar Financial in the 2nd quarter worth approximately $41,000. Geneos Wealth Management Inc. bought a new stake in shares of Flagstar Financial in the 1st quarter worth approximately $45,000. Finally, Harbor Capital Advisors Inc. bought a new stake in shares of Flagstar Financial in the 2nd quarter worth approximately $43,000. 67.88% of the stock is currently owned by institutional investors.

Flagstar Financial Trading Down 4.9%

The stock has a market capitalization of $4.76 billion, a P/E ratio of -4.41 and a beta of 1.10. The stock has a 50-day moving average price of $11.52 and a two-hundred day moving average price of $11.37. The company has a debt-to-equity ratio of 1.85, a quick ratio of 1.06 and a current ratio of 1.06.

About Flagstar Financial

Flagstar Financial, Inc operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit.

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