First Horizon Sees Unusually High Options Volume (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 recipient of unusually large options trading activity on Thursday. Stock investors bought 60,880 call options on the company. This is an increase of approximately 948% compared to the typical daily volume of 5,809 call options.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on FHN shares. Citigroup lifted their price target on shares of First Horizon from $25.00 to $26.00 and gave the company a "buy" rating in a report on Tuesday, August 26th. Royal Bank Of Canada reissued an "outperform" rating and issued a $24.00 target price (up previously from $22.00) on shares of First Horizon in a research note on Monday, June 9th. Bank of America raised their price target 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. Raymond James Financial reiterated an "outperform" rating and set a $24.00 target price (up from $20.00) on shares of First Horizon in a report on Tuesday, July 8th. Finally, Jefferies Financial Group started coverage on shares of First Horizon in a report on Wednesday, May 21st. They issued a "buy" rating and a $25.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $23.34.

First Horizon Trading Down 0.3%

Shares of FHN traded down $0.06 during mid-day trading on Tuesday, reaching $22.26. The stock had a trading volume of 9,449,908 shares, compared to its average volume of 7,051,776. The business's fifty day moving average is $22.15 and its 200 day moving average is $20.22. First Horizon has a 52-week low of $14.82 and a 52-week high of $23.08. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.96 and a quick ratio of 0.95. The firm has a market cap of $11.30 billion, a price-to-earnings ratio of 14.36, a P/E/G ratio of 1.07 and a beta of 0.67.

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

First Horizon Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 12th will be issued 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 dividend yield of 2.7%. First Horizon's dividend payout ratio (DPR) is currently 38.71%.

Insider Buying and Selling at First Horizon

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Byrne Asset Management LLC grew its holdings in First Horizon by 115.3% in the 1st quarter. Byrne Asset Management LLC now owns 1,550 shares of the financial services provider's stock valued at $30,000 after buying an additional 830 shares during the period. Kestra Investment Management LLC raised its position in shares of First Horizon by 873.1% in the 2nd quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 1,458 shares in the last quarter. Geneos Wealth Management Inc. raised its position in shares of 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 in the last quarter. Compass Financial Services Inc bought a new stake in shares of First Horizon in the 1st quarter valued at approximately $38,000. Finally, Quarry LP increased its holdings in shares of First Horizon by 129.2% in the 1st quarter. Quarry LP now owns 2,205 shares of the financial services provider's stock valued at $43,000 after acquiring an additional 1,243 shares during the last quarter. Institutional investors and hedge funds 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.