Traders Buy Large Volume of Flagstar Bank, National Association Call Options (NYSE:FLG)

Key Points

• Call-option activity surged: Investors bought 16,872 FLG call options, 346% above the typical volume of 3,782, signaling unusually high options-market interest.
• Analysts remain broadly positive: Ten analysts rate the stock Buy and four rate it Hold, producing a “Moderate Buy” consensus and an average price target of $16.04, despite several recent target-price reductions.
• Shares traded below recent averages: FLG fell $0.10 to $11.21, versus a 50-day moving average of $13.01 and a 200-day average of $13.80. The company also authorized a $250 million share-repurchase program, covering up to 4.1% of outstanding shares.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors purchased 16,872 call options on the company. This represents an increase of 346% compared to the typical volume of 3,782 call options.

Analyst Upgrades and Downgrades

FLG has been the subject of a number of analyst reports. Truist Financial reduced their price target on Flagstar Bank, National Association from $17.00 to $15.00 and set a "buy" rating for the company in a research report on Friday. Cantor Fitzgerald raised their price objective on Flagstar Bank, National Association from $16.00 to $17.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. UBS Group began coverage on Flagstar Bank, National Association in a report on Tuesday, July 7th. They issued a "buy" rating and a $18.00 target price for the company. Morgan Stanley reduced their target price on Flagstar Bank, National Association from $17.00 to $16.00 and set an "overweight" rating for the company in a report on Monday, September 28th. Finally, TD Cowen decreased their target price on Flagstar Bank, National Association from $17.00 to $16.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Ten research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $16.04.

Flagstar Bank, National Association Stock Performance

Flagstar Bank, National Association stock traded down $0.10 during mid-day trading on Tuesday, reaching $11.21. The company had a trading volume of 2,491,108 shares, compared to its average volume of 4,943,063. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.43. Flagstar Bank, National Association has a 52 week low of $10.57 and a 52 week high of $15.44. The company has a 50 day moving average of $13.01 and a 200-day moving average of $13.80. The firm has a market cap of $4.65 billion, a price-to-earnings ratio of 373.17 and a beta of 1.05.

Flagstar Bank, National Association (NYSE:FLG - Get Free Report) last issued its 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 during the quarter, compared to analyst estimates of $539.34 million. Flagstar Bank, National Association had a net margin of 1.08% and a return on equity of 0.98%. The business's revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.14) earnings per share. On average, sell-side analysts expect that Flagstar Bank, National Association will post 0.28 EPS for the current fiscal year.

Flagstar Bank, National Association Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 17th. Shareholders of record on Monday, September 7th were paid a $0.01 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.04 dividend on an annualized basis and a yield of 0.4%. Flagstar Bank, National Association's payout ratio is currently 133.33%.

Flagstar Bank, National Association declared that its board has approved a share repurchase program on Friday, July 24th that allows the company to buy back $250.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 4.1% of its shares through open market purchases. Share repurchase programs are generally a sign that the company's board believes its shares are undervalued.

Institutional Trading of Flagstar Bank, National Association

Hedge funds and other institutional investors have recently made changes to their positions in the business. IFP Advisors Inc increased its position in Flagstar Bank, National Association by 114.0% in the 2nd quarter. IFP Advisors Inc now owns 3,013 shares of the company's stock valued at $45,000 after acquiring an additional 1,605 shares in the last quarter. Core Capital Management & Research inc. acquired a new position in shares of Flagstar Bank, National Association during the second quarter worth approximately $50,000. Signature Equity Partners LLC bought a new position in Flagstar Bank, National Association in the 1st quarter worth approximately $74,000. Nykredit A S bought a new position in Flagstar Bank, National Association in the 2nd quarter worth approximately $153,000. Finally, HB Wealth Management LLC lifted its holdings in Flagstar Bank, National Association by 16.5% during the 1st quarter. HB Wealth Management LLC now owns 12,042 shares of the company's stock worth $159,000 after buying an additional 1,704 shares in the last quarter. 67.88% of the stock is currently owned by institutional investors and hedge funds.

About Flagstar Bank, National Association

Flagstar Bank, National Association is the principal banking subsidiary of Flagstar Financial, Inc NYSE: FLG. The bank provides a range of financial services to consumers, businesses and institutional clients, including deposit accounts, residential and commercial lending, consumer loans, credit products and treasury management services.

Flagstar also has a significant mortgage banking business, offering home purchase and refinancing loans through retail, broker and correspondent channels.

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