Investors Buy Large Volume of Call Options on First Horizon (NYSE:FHN)

Key Points

• First Horizon Corporation experienced a significant rise in call options trading, with a total of 118,815 call options bought, marking an increase of 881% compared to its average daily volume.
• The company reported a $0.51 earnings per share (EPS) for the last quarter, surpassing analyst expectations of $0.45 and marking a year-over-year revenue increase of 7.4%.
• First Horizon has recently announced a quarterly dividend of $0.15 per share, with a dividend yield of 3.0% and a payout ratio of 38.71%.

First Horizon Corporation (NYSE:FHN - Get Free Report) saw unusually large options trading on Wednesday. Stock traders bought 118,815 call options on the stock. This represents an increase of 881% compared to the average daily volume of 12,116 call options.

First Horizon Stock Performance

Shares of NYSE:FHN traded down $2.70 during trading on Wednesday, reaching $20.32. The stock had a trading volume of 42,026,189 shares, compared to its average volume of 7,864,919. The company has a quick ratio of 0.95, a current ratio of 0.96 and a debt-to-equity ratio of 0.15. First Horizon has a 52 week low of $15.19 and a 52 week high of $23.70. The stock has a fifty day simple moving average of $22.45 and a two-hundred day simple moving average of $20.73. The firm has a market capitalization of $10.32 billion, a price-to-earnings ratio of 13.19, a P/E/G ratio of 0.94 and a beta of 0.67.

First Horizon (NYSE:FHN - Get Free Report) last posted its quarterly earnings results on Wednesday, October 15th. The financial services provider reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.06. First Horizon had a net margin of 17.10% and a return on equity of 10.55%. The company had revenue of $849.00 million for the quarter, compared to analyst estimates of $848.08 million. During the same period last year, the business posted $0.42 EPS. The business's quarterly revenue was up 7.4% on a year-over-year basis. As a group, analysts anticipate that First Horizon will post 1.67 earnings per share for the current fiscal year.

First Horizon Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Friday, September 12th. First Horizon's dividend payout ratio is 38.71%.

Insider Buying and Selling

In other news, COO Tammy Locascio sold 10,285 shares of the company's stock in a transaction dated Friday, July 18th. The shares were sold at an average price of $22.25, for a total transaction of $228,841.25. Following the completion of the sale, the chief operating officer owned 342,051 shares of the company's stock, valued at $7,610,634.75. This represents a 2.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP David T. Popwell sold 100,000 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $22.50, for a total value of $2,250,000.00. Following the completion of the sale, the executive vice president owned 462,581 shares of the company's stock, valued at $10,408,072.50. This trade represents a 17.78% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 148,295 shares of company stock valued at $3,322,663. 1.04% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Wellington Shields Capital Management LLC grew its position in shares of First Horizon by 1.9% in the second quarter. Wellington Shields Capital Management LLC now owns 28,026 shares of the financial services provider's stock valued at $594,000 after purchasing an additional 514 shares during the last quarter. HighTower Advisors LLC raised its position in First Horizon by 1.0% during the first quarter. HighTower Advisors LLC now owns 60,510 shares of the financial services provider's stock valued at $1,175,000 after purchasing an additional 575 shares in the last quarter. Inspire Investing LLC lifted its position in shares of First Horizon by 3.5% during the 2nd quarter. Inspire Investing LLC now owns 18,383 shares of the financial services provider's stock worth $390,000 after buying an additional 624 shares during the last quarter. Signaturefd LLC grew its holdings in shares of First Horizon by 4.8% during the 1st quarter. Signaturefd LLC now owns 13,878 shares of the financial services provider's stock valued at $270,000 after purchasing an additional 635 shares during the last quarter. Finally, Allworth Financial LP increased its holdings in shares of First Horizon by 57.9% during the second quarter. Allworth Financial LP now owns 2,064 shares of the financial services provider's stock worth $44,000 after buying an additional 757 shares in the last quarter. Institutional investors own 80.28% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on FHN. Weiss Ratings reiterated a "hold (c+)" rating on shares of First Horizon in a research report on Wednesday, October 8th. Raymond James Financial set a $25.00 price objective on shares of First Horizon and gave the stock an "outperform" rating in a research note on Tuesday, October 7th. TD Cowen assumed coverage on First Horizon in a report on Thursday, September 25th. They set a "hold" rating and a $25.00 target price for the company. Royal Bank Of Canada raised their price target on shares of First Horizon from $24.00 to $27.00 and gave the company an "outperform" rating in a report on Friday, October 10th. Finally, Barclays raised their price target on shares of First Horizon from $26.00 to $29.00 and gave the stock an "overweight" rating in a report on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $24.94.

First Horizon Company Profile

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments.

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