Stock Traders Buy Large Volume of First Horizon Call Options (NYSE:FHN)

Key Points

• First Horizon Corporation saw an unusual spike in options trading, with traders purchasing 60,880 call options, marking an increase of approximately 948% from the typical daily volume.
• Analysts have raised their target prices for First Horizon, with Barclays upgrading theirs from $23.00 to $26.00 and Bank of America from $26.00 to $27.00, reflecting a generally positive market outlook.
• The company recently announced a quarterly dividend of $0.15 per share, yielding 2.6%, with a payout scheduled for October 1st to shareholders of record on September 12th.

First Horizon Corporation (NYSE:FHN - Get Free Report) was the target of unusually large options trading on Thursday. Stock traders bought 60,880 call options on the stock. This represents an increase of approximately 948% compared to the typical daily volume of 5,809 call options.

Wall Street Analyst Weigh In

FHN has been the topic of a number of recent research reports. Barclays increased their price objective on First Horizon from $23.00 to $26.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Truist Financial increased their target price on shares of First Horizon from $21.00 to $23.00 and gave the stock a "hold" rating in a report on Friday, July 11th. Bank of America increased their target price on shares of First Horizon from $26.00 to $27.00 and gave the stock a "buy" rating in a research note on Thursday, July 17th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $24.00 target price (up from $22.00) on shares of First Horizon in a report on Monday, June 9th. Finally, Jefferies Financial Group initiated coverage on shares of First Horizon in a research note on Wednesday, May 21st. They set a "buy" rating and a $25.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $23.34.

First Horizon Price Performance

NYSE:FHN traded up $0.14 during trading hours on Thursday, reaching $22.82. 7,393,749 shares of the company were exchanged, compared to its average volume of 6,944,577. First Horizon has a twelve month low of $14.82 and a twelve month high of $23.08. The company has a current ratio of 0.96, a quick ratio of 0.95 and a debt-to-equity ratio of 0.15. The firm has a market cap of $11.58 billion, a PE ratio of 14.72, a price-to-earnings-growth ratio of 1.08 and a beta of 0.67. The stock's 50-day moving average is $22.11 and its 200-day moving average is $20.20.

First Horizon (NYSE:FHN - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The financial services provider reported $0.45 EPS for the quarter, beating the consensus estimate of $0.41 by $0.04. The company had revenue of $830.19 million during the quarter, compared to analysts' expectations of $832.95 million. First Horizon had a net margin of 17.10% and a return on equity of 10.55%. During the same quarter last year, the company posted $0.36 EPS. On average, sell-side analysts anticipate that First Horizon will post 1.67 earnings per share for the current fiscal year.

First Horizon Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $0.60 annualized dividend and a yield of 2.6%. First Horizon's dividend payout ratio (DPR) is presently 38.71%.

Insider Transactions at First Horizon

In related news, EVP David T. Popwell sold 100,000 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $22.50, for a total transaction of $2,250,000.00. Following the completion of the transaction, the executive vice president owned 462,581 shares in the company, valued at $10,408,072.50. This represents a 17.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 directly 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 disclosure for this sale can be found here. Insiders sold a total of 148,295 shares of company stock valued at $3,322,663 in the last ninety days. 0.87% of the stock is currently owned by insiders.

Institutional Trading of First Horizon

A number of hedge funds have recently modified their holdings of the business. Byrne Asset Management LLC lifted its holdings in shares of First Horizon by 115.3% during the first quarter. Byrne Asset Management LLC now owns 1,550 shares of the financial services provider's stock worth $30,000 after buying an additional 830 shares during the last quarter. Kestra Investment Management LLC grew its stake in shares of First Horizon by 873.1% in the second quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider's stock valued at $34,000 after buying an additional 1,458 shares in the last quarter. Geneos Wealth Management Inc. boosted its stake in First Horizon by 156.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,794 shares of the financial services provider's stock valued at $35,000 after purchasing an additional 1,095 shares during the period. Compass Financial Services Inc bought a new stake in First Horizon during the first quarter worth $38,000. Finally, Quarry LP grew its stake in shares of First Horizon by 129.2% in the first quarter. Quarry LP now owns 2,205 shares of the financial services provider's stock worth $43,000 after purchasing an additional 1,243 shares during the last quarter. Hedge funds and other institutional investors own 80.28% of the company's stock.

About First Horizon

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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