Flagstar Bank, National Association (NYSE:FLG) Reaches New 52-Week Low Following Weak Earnings

Key Points

• Flagstar shares fell to a new 52-week low, trading as low as $10.42 after quarterly earnings of $0.01 per share missed the $0.07 consensus estimate. Revenue of $530 million also came in below analysts’ $545.12 million forecast.
• The board approved a $250 million share-repurchase program, authorizing buybacks of up to 4.1% of outstanding shares.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $15.96, while institutional investors own 67.88% of the company.

Shares of Flagstar Bank, National Association (NYSE:FLG - Get Free Report) hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $10.42 and last traded at $10.8660, with a volume of 1,884,812 shares traded. The stock had previously closed at $11.44.

The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.06). Flagstar Bank, National Association had a return on equity of 0.98% and a net margin of 1.08%. The company had revenue of $530.00 million for the quarter, compared to analyst estimates of $545.12 million. During the same period in the prior year, the business earned ($0.07) earnings per share.

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

Analyst Ratings Changes

FLG has been the topic of several analyst reports. UBS Group started coverage on shares of Flagstar Bank, National Association in a report on Tuesday, July 7th. They issued a "buy" rating and a $18.00 target price on the stock. Citigroup boosted their price target on shares of Flagstar Bank, National Association from $17.00 to $18.00 and gave the stock a "buy" rating in a research note on Thursday, June 25th. Truist Financial cut their price target on shares of Flagstar Bank, National Association from $17.00 to $15.00 and set a "buy" rating for the company in a report on Friday, October 9th. Raymond James Financial assumed coverage on shares of Flagstar Bank, National Association in a research report on Wednesday, September 2nd. They issued a "market perform" rating for the company. Finally, Morgan Stanley lowered their price objective on Flagstar Bank, National Association from $17.00 to $16.00 and set an "overweight" rating on the stock in a report on Monday, September 28th. Ten investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, Flagstar Bank, National Association currently has an average rating of "Moderate Buy" and an average price target of $15.96.

Institutional Trading of Flagstar Bank, National Association

Institutional investors have recently added to or reduced their stakes in the stock. North Reef Capital Management LP purchased a new position in Flagstar Bank, National Association in the first quarter valued at about $36,744,000. SG Americas Securities LLC boosted its stake in shares of Flagstar Bank, National Association by 14,586.4% during the 1st quarter. SG Americas Securities LLC now owns 2,098,389 shares of the company's stock worth $27,636,000 after acquiring an additional 2,084,101 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Flagstar Bank, National Association by 9.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,731,631 shares of the company's stock worth $88,645,000 after acquiring an additional 569,003 shares in the last quarter. Engineers Gate Manager LP acquired a new stake in shares of Flagstar Bank, National Association in the 2nd quarter worth approximately $8,480,000. Finally, Polar Asset Management Partners Inc. grew its holdings in shares of Flagstar Bank, National Association by 36.8% in the 1st quarter. Polar Asset Management Partners Inc. now owns 1,626,388 shares of the company's stock worth $21,420,000 after acquiring an additional 437,939 shares during the period. Hedge funds and other institutional investors own 67.88% of the company's stock.

Flagstar Bank, National Association Stock Performance

The firm has a fifty day moving average of $12.53 and a 200-day moving average of $13.69. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.43. The stock has a market capitalization of $4.41 billion, a price-to-earnings ratio of 353.83 and a beta of 1.05.

Flagstar Bank, National Association Company Profile

Flagstar Bank, National Association is a full-service regional bank and the principal banking subsidiary of Flagstar Financial, Inc, formerly known as New York Community Bancorp. The bank provides consumer and business banking services through deposits, checking and savings accounts, lending, cash management, and digital banking channels.

Flagstar's lending activities include residential mortgages, mortgage servicing, commercial real estate loans, multifamily financing, commercial and industrial loans, and other consumer credit products.

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