First Horizon Sees Unusually High Options Volume (NYSE:FHN)

First Horizon Corporation (NYSE:FHN) saw unusually large options trading on Wednesday. Stock investors bought 202,507 call options on the company. This represents an increase of approximately 919% compared to the average volume of 19,872 call options.

First Horizon Trading Up 4.4%

First Horizon stock traded up $1.06 during trading hours on Wednesday, reaching $24.97. The stock had a trading volume of 8,741,911 shares, compared to its average volume of 6,994,578. The company has a fifty day simple moving average of $23.31 and a 200-day simple moving average of $22.48. First Horizon has a 52 week low of $15.19 and a 52 week high of $25.08. The stock has a market cap of $12.29 billion, a PE ratio of 13.28, a PEG ratio of 0.91 and a beta of 0.61. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.96 and a quick ratio of 0.95.

First Horizon (NYSE:FHN) last issued its quarterly earnings data on Thursday, January 15th. The financial services provider reported $0.52 EPS for the quarter, topping the consensus estimate of $0.46 by $0.06. First Horizon had a net margin of 19.67% and a return on equity of 11.21%. The business had revenue of $892.00 million during the quarter, compared to analyst estimates of $863.87 million. During the same period in the prior year, the business earned $0.43 EPS. Analysts forecast that First Horizon will post 1.67 EPS for the current fiscal year.

First Horizon Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 2nd. Stockholders of record on Friday, December 12th were issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend was Friday, December 12th. First Horizon’s dividend payout ratio is presently 31.91%.

First Horizon declared that its board has authorized a stock repurchase plan on Monday, October 27th that authorizes the company to buyback $1.20 billion in shares. This buyback authorization authorizes the financial services provider to repurchase up to 11.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP David T. Popwell sold 155,149 shares of the company’s stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $21.31, for a total transaction of $3,306,225.19. Following the completion of the transaction, the executive vice president directly owned 307,432 shares in the company, valued at approximately $6,551,375.92. This represents a 33.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Jeff L. Fleming sold 7,619 shares of the firm’s stock in a transaction on Wednesday, November 12th. The shares were sold at an average price of $21.74, for a total value of $165,637.06. Following the sale, the chief accounting officer directly owned 128,626 shares in the company, valued at approximately $2,796,329.24. This trade represents a 5.59% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.04% of the company’s stock.

Hedge Funds Weigh In On First Horizon

Several hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank bought a new position in First Horizon during the second quarter valued at approximately $131,399,000. William Blair Investment Management LLC bought a new position in shares of First Horizon during the 2nd quarter worth $79,776,000. Azora Capital LP boosted its stake in shares of First Horizon by 1,020.5% during the second quarter. Azora Capital LP now owns 2,610,244 shares of the financial services provider’s stock valued at $55,337,000 after purchasing an additional 2,377,300 shares in the last quarter. Jupiter Asset Management Ltd. bought a new stake in First Horizon during the third quarter valued at about $49,180,000. Finally, JPMorgan Chase & Co. raised its stake in shares of First Horizon by 45.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 6,738,428 shares of the financial services provider’s stock worth $142,855,000 after acquiring an additional 2,091,865 shares in the last quarter. 80.28% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on FHN shares. Cowen restated a “hold” rating on shares of First Horizon in a report on Wednesday, January 7th. Citigroup upped their target price on First Horizon from $25.00 to $28.00 and gave the company a “buy” rating in a report on Tuesday, December 30th. UBS Group reiterated a “buy” rating and set a $28.00 price target on shares of First Horizon in a research note on Tuesday, January 6th. Evercore ISI reissued an “in-line” rating and set a $20.00 price objective (down previously from $26.00) on shares of First Horizon in a report on Thursday, October 16th. Finally, TD Cowen boosted their target price on First Horizon from $26.00 to $27.00 and gave the stock a “hold” rating in a research report on Friday, January 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, First Horizon currently has a consensus rating of “Moderate Buy” and a consensus price target of $26.58.

First Horizon Company Profile

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.