Flagstar Financial Target of Unusually High Options Trading (NYSE:FLG)

Key Points

• Flagstar Financial saw a significant increase in put options trading, with 21,180 contracts purchased on Wednesday, marking a 181% rise compared to average volumes.
• Analysts have varied opinions on Flagstar Financial, with an average rating of "Moderate Buy" and price targets ranging from $12.50 to $16.50.
• The company reported a quarterly loss of ($0.14) EPS, missing estimates, along with a year-over-year revenue decline of 26.1%.

Flagstar Financial, Inc. (NYSE:FLG - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock investors acquired 21,180 put options on the company. This is an increase of 181% compared to the average daily volume of 7,526 put options.

Institutional Investors Weigh In On Flagstar Financial

Several hedge funds have recently added to or reduced their stakes in the business. Liberty 77 Capital L.P. acquired a new stake in Flagstar Financial during the 1st quarter worth approximately $871,500,000. Reverence Capital Partners L.P. purchased a new position in shares of Flagstar Financial in the 1st quarter worth about $418,101,000. Vanguard Group Inc. purchased a new position in shares of Flagstar Financial in the 1st quarter worth about $378,161,000. Geode Capital Management LLC lifted its holdings in Flagstar Financial by 9.4% during the second quarter. Geode Capital Management LLC now owns 7,462,877 shares of the company's stock valued at $79,116,000 after purchasing an additional 641,117 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in Flagstar Financial by 1,130.1% during the second quarter. Alliancebernstein L.P. now owns 6,635,962 shares of the company's stock valued at $70,341,000 after purchasing an additional 6,096,512 shares during the last quarter. 67.88% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on FLG. Cantor Fitzgerald began coverage on shares of Flagstar Financial in a report on Wednesday, September 10th. They set an "overweight" rating and a $15.00 price objective on the stock. Citigroup upped their price objective on shares of Flagstar Financial from $15.50 to $16.50 and gave the stock a "buy" rating in a research note on Tuesday, August 26th. JPMorgan Chase & Co. decreased their price objective on shares of Flagstar Financial from $13.00 to $12.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 1st. Stephens reiterated an "equal weight" rating and set a $12.50 target price on shares of Flagstar Financial in a research report on Thursday, June 12th. Finally, DA Davidson reiterated a "buy" rating and set a $14.50 target price on shares of Flagstar Financial in a research report on Thursday, June 26th. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $13.65.

Flagstar Financial Stock Performance

FLG stock traded down $0.22 during trading hours on Friday, reaching $12.19. The stock had a trading volume of 7,578,862 shares, compared to its average volume of 4,586,904. Flagstar Financial has a fifty-two week low of $8.56 and a fifty-two week high of $13.35. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a 50-day simple moving average of $12.07 and a 200 day simple moving average of $11.67. The stock has a market capitalization of $5.07 billion, a PE ratio of -7.39 and a beta of 1.20.

Flagstar Financial (NYSE:FLG - Get Free Report) last issued its quarterly earnings data on Friday, July 25th. The company reported ($0.14) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.02). Flagstar Financial had a negative return on equity of 6.60% and a negative net margin of 10.83%.The business had revenue of $496.00 million during the quarter, compared to analyst estimates of $524.33 million. The company's revenue for the quarter was down 26.1% on a year-over-year basis. Analysts predict that Flagstar Financial will post -0.31 EPS for the current fiscal year.

Flagstar Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 17th. Investors of record on Sunday, September 7th were issued a dividend of $0.01 per share. The ex-dividend date of this dividend was Friday, September 5th. This represents a $0.04 annualized dividend and a dividend yield of 0.3%. Flagstar Financial's payout ratio is -2.42%.

Flagstar Financial Company Profile

Flagstar Financial, Inc operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company's deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit.