Investors Buy Large Volume of Regions Financial Call Options (NYSE:RF)

Regions Financial Corporation (NYSE:RF) was the target of some unusual options trading activity on Wednesday. Investors acquired 3,512 call options on the company. This represents an increase of 68% compared to the average daily volume of 2,087 call options.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Stephens reiterated an “equal weight” rating and set a $27.00 price target (down previously from $30.00) on shares of Regions Financial in a research note on Tuesday, October 14th. Cantor Fitzgerald began coverage on Regions Financial in a research report on Wednesday, September 10th. They set an “overweight” rating and a $30.00 target price for the company. Keefe, Bruyette & Woods upped their price objective on Regions Financial from $30.00 to $31.00 and gave the company an “outperform” rating in a research report on Wednesday, December 17th. Truist Financial boosted their target price on Regions Financial from $26.00 to $29.00 and gave the company a “hold” rating in a research report on Monday. Finally, Cowen reaffirmed a “buy” rating on shares of Regions Financial in a research note on Tuesday, October 21st. Eight research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $28.21.

Regions Financial Stock Performance

Shares of NYSE RF traded up $0.25 during midday trading on Wednesday, reaching $27.80. 2,448,900 shares of the stock were exchanged, compared to its average volume of 14,303,844. The firm has a 50-day simple moving average of $25.35 and a two-hundred day simple moving average of $25.32. The company has a quick ratio of 0.81, a current ratio of 0.82 and a debt-to-equity ratio of 0.27. Regions Financial has a twelve month low of $17.74 and a twelve month high of $27.98. The firm has a market cap of $24.37 billion, a price-to-earnings ratio of 12.24, a PEG ratio of 1.23 and a beta of 1.04.

Regions Financial (NYSE:RF) last announced its earnings results on Thursday, February 27th. The bank reported $0.39 EPS for the quarter. The business had revenue of $1.81 billion during the quarter. Regions Financial had a return on equity of 13.05% and a net margin of 22.49%. As a group, analysts anticipate that Regions Financial will post 2.26 EPS for the current fiscal year.

Regions Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 2nd. Shareholders of record on Monday, December 1st will be paid a dividend of $0.265 per share. This represents a $1.06 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date is Monday, December 1st. Regions Financial’s dividend payout ratio is 46.70%.

Regions Financial declared that its Board of Directors has approved a stock buyback plan on Wednesday, December 10th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the bank to reacquire up to 12.9% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Regions Financial

A number of large investors have recently modified their holdings of the company. American National Bank & Trust raised its stake in Regions Financial by 2,433.3% in the second quarter. American National Bank & Trust now owns 1,064 shares of the bank’s stock valued at $25,000 after buying an additional 1,022 shares in the last quarter. CVA Family Office LLC boosted its holdings in Regions Financial by 163.2% in the second quarter. CVA Family Office LLC now owns 1,058 shares of the bank’s stock valued at $25,000 after purchasing an additional 656 shares in the last quarter. Darwin Wealth Management LLC purchased a new position in Regions Financial in the second quarter valued at approximately $25,000. Bayforest Capital Ltd boosted its holdings in shares of Regions Financial by 637.3% in the 1st quarter. Bayforest Capital Ltd now owns 1,224 shares of the bank’s stock valued at $27,000 after buying an additional 1,058 shares in the last quarter. Finally, FNY Investment Advisers LLC purchased a new position in shares of Regions Financial in the 2nd quarter valued at $30,000. 79.39% of the stock is owned by hedge funds and other institutional investors.

Regions Financial Company Profile

Regions Financial Corporation (NYSE: RF) is a U.S. bank holding company headquartered in Birmingham, Alabama, that provides a broad range of banking and financial services. Its primary banking subsidiary, Regions Bank, serves retail and commercial customers through a combination of branch and ATM networks, digital channels and relationship-based delivery. The company offers deposit accounts, consumer and commercial loans, mortgage origination and servicing, and payment and treasury services.

In addition to core banking, Regions offers wealth management, trust and brokerage services, insurance solutions, and capital markets capabilities to corporate and institutional clients.