Stock Traders Purchase High Volume of Call Options on First Horizon (NYSE:FHN)

First Horizon Corporation (NYSE:FHN) was the recipient of some unusual options trading activity on Thursday. Stock traders bought 307,041 call options on the stock. This is an increase of approximately 1,463% compared to the average daily volume of 19,640 call options.

Insider Activity

In other news, EVP Anthony J. Restel sold 5,719 shares of the stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $24.35, for a total value of $139,257.65. Following the transaction, the executive vice president owned 619,132 shares in the company, valued at $15,075,864.20. This represents a 0.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Jeff L. Fleming sold 7,619 shares of the business’s stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $21.74, for a total transaction of $165,637.06. Following the sale, the chief accounting officer owned 128,626 shares of the company’s stock, valued at $2,796,329.24. This trade represents a 5.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.87% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Navigoe LLC purchased a new stake in First Horizon during the third quarter valued at $25,000. Atlantic Union Bankshares Corp bought a new position in shares of First Horizon in the 3rd quarter valued at about $25,000. Root Financial Partners LLC purchased a new position in First Horizon in the third quarter worth about $31,000. Kestra Investment Management LLC increased its stake in First Horizon by 873.1% during the second quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider’s stock worth $34,000 after acquiring an additional 1,458 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its position in First Horizon by 156.7% during the first 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 during the period. 80.28% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on FHN shares. Wall Street Zen upgraded First Horizon from a “sell” rating to a “hold” rating in a research report on Saturday, November 15th. JPMorgan Chase & Co. lifted their price objective on First Horizon from $23.00 to $27.00 and gave the company a “neutral” rating in a research report on Tuesday, December 16th. Raymond James Financial increased their target price on shares of First Horizon from $23.00 to $27.00 and gave the stock an “outperform” rating in a report on Wednesday, January 7th. DA Davidson lifted their price target on shares of First Horizon from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, January 16th. Finally, National Bankshares set a $27.00 price target on shares of First Horizon in a research report on Friday, January 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $26.63.

First Horizon Price Performance

Shares of NYSE:FHN opened at $25.84 on Friday. The firm has a market cap of $12.72 billion, a price-to-earnings ratio of 13.74, a P/E/G ratio of 0.97 and a beta of 0.63. The firm has a fifty day moving average price of $24.08 and a 200 day moving average price of $22.72. First Horizon has a fifty-two week low of $15.19 and a fifty-two week high of $26.31. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.95 and a current ratio of 0.96.

First Horizon (NYSE:FHN) last announced its quarterly earnings results 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 for the quarter, compared to analysts’ expectations of $863.87 million. During the same quarter in the previous year, the company earned $0.43 EPS. As a group, sell-side analysts expect that First Horizon will post 1.67 earnings per share for the current fiscal year.

First Horizon Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be issued a dividend of $0.17 per share. The ex-dividend date is Friday, March 13th. This represents a $0.68 annualized dividend and a yield of 2.6%. This is a boost from First Horizon’s previous quarterly dividend of $0.15. First Horizon’s dividend payout ratio (DPR) is 31.91%.

First Horizon announced that its board has initiated a share buyback program on Monday, October 27th that permits the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 11.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

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.