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

First Horizon Corporation (NYSE:FHN) saw unusually large options trading activity on Wednesday. Stock investors purchased 10,979 call options on the stock. This is an increase of 251% compared to the average volume of 3,129 call options.

More First Horizon News

Here are the key news stories impacting First Horizon this week:

• Positive Sentiment: First Horizon reported Q2 EPS of $0.54, topping analyst expectations and rising from $0.45 a year ago, while revenue also came in ahead of estimates at $890 million. Article Title
• Positive Sentiment: The company highlighted strong loan growth, higher net interest income, and fee income, which support the view that core banking activity is improving. Article Title
• Positive Sentiment: Investor sentiment was also helped by unusually heavy call-option buying, suggesting some traders are positioning for additional upside. Article Title
• Neutral Sentiment: JPMorgan lowered its price target on FHN to $27.00 from $28.50 but kept a neutral rating, indicating limited immediate upside rather than a bearish call. Article Title
• Negative Sentiment: Some market commentary noted the stock fell after the earnings release because expenses increased and capital ratios weakened, raising concerns about margin and balance-sheet pressure. Article Title
• Negative Sentiment: Analysts also flagged funding-cost and deposit-mix concerns, including greater use of brokered funds, which could pressure net interest margin near term. Article Title

Analyst Ratings Changes

A number of equities analysts recently issued reports on FHN shares. Wall Street Zen lowered First Horizon from a “hold” rating to a “sell” rating in a report on Saturday, June 27th. Evercore set a $27.00 target price on First Horizon in a report on Monday, July 6th. Barclays cut their price target on First Horizon from $30.00 to $29.00 and set an “overweight” rating for the company in a research note on Tuesday, April 7th. Zacks Research downgraded First Horizon from a “strong-buy” rating to a “hold” rating in a report on Friday, March 20th. Finally, Autonomous Res lowered shares of First Horizon from a “strong-buy” rating to a “strong sell” rating in a research report on Wednesday, April 29th. Nine research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, First Horizon has a consensus rating of “Hold” and a consensus price target of $27.16.

First Horizon Stock Up 1.4%

FHN stock opened at $25.29 on Friday. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.97 and a quick ratio of 0.96. The company’s 50 day simple moving average is $24.74 and its 200-day simple moving average is $24.26. The firm has a market capitalization of $12.01 billion, a PE ratio of 12.10, a P/E/G ratio of 0.97 and a beta of 0.60. First Horizon has a 12 month low of $19.80 and a 12 month high of $26.56.

First Horizon (NYSE:FHN) last released its earnings results on Wednesday, July 15th. The financial services provider reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.52 by $0.02. First Horizon had a net margin of 21.12% and a return on equity of 12.06%. The company had revenue of $890.00 million for the quarter, compared to analyst estimates of $878.42 million. During the same period in the prior year, the firm earned $0.45 EPS. Equities analysts expect that First Horizon will post 2.16 earnings per share for the current fiscal year.

First Horizon Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Friday, June 12th were given a dividend of $0.17 per share. The ex-dividend date was Friday, June 12th. This represents a $0.68 annualized dividend and a yield of 2.7%. First Horizon’s dividend payout ratio is 34.00%.

Institutional Investors Weigh In On First Horizon

Several hedge funds have recently modified their holdings of FHN. Bessemer Group Inc. boosted its holdings in shares of First Horizon by 0.3% in the 1st quarter. Bessemer Group Inc. now owns 138,920 shares of the financial services provider’s stock valued at $3,162,000 after purchasing an additional 425 shares during the last quarter. Thoroughbred Financial Services LLC increased its holdings in shares of First Horizon by 3.4% during the 4th quarter. Thoroughbred Financial Services LLC now owns 14,055 shares of the financial services provider’s stock worth $335,000 after buying an additional 457 shares during the last quarter. Illinois Municipal Retirement Fund raised its position in shares of First Horizon by 0.7% in the 4th quarter. Illinois Municipal Retirement Fund now owns 68,661 shares of the financial services provider’s stock worth $1,641,000 after buying an additional 489 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in First Horizon by 1.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 40,296 shares of the financial services provider’s stock valued at $963,000 after acquiring an additional 507 shares during the last quarter. Finally, Aaron Wealth Advisors LLC boosted its holdings in First Horizon by 5.4% in the fourth quarter. Aaron Wealth Advisors LLC now owns 9,905 shares of the financial services provider’s stock valued at $237,000 after acquiring an additional 511 shares during the last quarter. 80.28% of the stock is owned by institutional investors and hedge funds.

About First Horizon

First Horizon Corporation, headquartered in Memphis, Tennessee, is a diversified financial services company providing an array of retail, commercial and wealth management solutions. As the largest bank-based financial services firm in Tennessee, First Horizon operates through a network of branches and digital platforms across the Southeastern United States, offering personal and business banking, mortgage origination and servicing, payment solutions and treasury management services.

Tracing its origins to the First National Bank of Memphis established in 1864, First Horizon has grown through strategic acquisitions and organic expansion to serve customers in Tennessee, Texas, North Carolina, South Carolina, Georgia and Florida.