Regions Financial (NYSE:RF) Shares Gap Up on Strong Earnings

Regions Financial Corporation (NYSE:RF - Get Free Report)'s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $24.51, but opened at $25.50. Regions Financial shares last traded at $25.52, with a volume of 2,269,411 shares.

The bank reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.56 by $0.04. Regions Financial had a return on equity of 13.04% and a net margin of 21.43%. The firm had revenue of $1.91 billion for the quarter, compared to analyst estimates of $1.86 billion. During the same quarter last year, the company earned $0.52 EPS. The company's revenue was up 10.1% on a year-over-year basis.

Regions Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.265 dividend. This is a positive change from Regions Financial's previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $1.06 annualized dividend and a dividend yield of 4.11%. Regions Financial's dividend payout ratio (DPR) is presently 48.08%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on RF shares. Truist Financial reissued a "hold" rating on shares of Regions Financial in a report on Friday, May 23rd. Barclays cut their price objective on Regions Financial from $26.00 to $24.00 and set an "underweight" rating on the stock in a report on Monday, April 21st. TD Cowen started coverage on Regions Financial in a report on Thursday, May 15th. They set a "buy" rating and a $31.00 price objective on the stock. Wall Street Zen raised Regions Financial from a "sell" rating to a "hold" rating in a report on Saturday, July 5th. Finally, Wells Fargo & Company cut their price objective on Regions Financial from $28.00 to $26.00 and set an "equal weight" rating on the stock in a report on Friday, March 28th. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and twelve have assigned a buy rating to the stock. According to MarketBeat.com, Regions Financial has a consensus rating of "Moderate Buy" and an average target price of $26.15.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. IFG Advisory LLC lifted its stake in shares of Regions Financial by 0.9% in the 1st quarter. IFG Advisory LLC now owns 52,531 shares of the bank's stock valued at $1,142,000 after purchasing an additional 470 shares during the period. Signet Financial Management LLC raised its stake in shares of Regions Financial by 4.6% in the second quarter. Signet Financial Management LLC now owns 10,896 shares of the bank's stock worth $256,000 after purchasing an additional 483 shares during the last quarter. Horizon Investments LLC raised its stake in shares of Regions Financial by 3.9% in the first quarter. Horizon Investments LLC now owns 13,369 shares of the bank's stock worth $291,000 after purchasing an additional 508 shares during the last quarter. First Horizon Advisors Inc. raised its stake in shares of Regions Financial by 8.7% in the first quarter. First Horizon Advisors Inc. now owns 6,641 shares of the bank's stock worth $144,000 after purchasing an additional 532 shares during the last quarter. Finally, Lido Advisors LLC raised its stake in shares of Regions Financial by 2.6% in the fourth quarter. Lido Advisors LLC now owns 22,291 shares of the bank's stock worth $530,000 after purchasing an additional 558 shares during the last quarter. 79.39% of the stock is owned by institutional investors and hedge funds.

Regions Financial Trading Up 5.2%

The stock has a market capitalization of $23.18 billion, a PE ratio of 12.38, a P/E/G ratio of 1.80 and a beta of 0.98. The firm has a 50 day moving average price of $22.68 and a 200 day moving average price of $22.41. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.36.

About Regions Financial

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services.

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