Principal Financial Group Inc. Trims Stake in First Horizon Corporation $FHN

Principal Financial Group Inc. cut its position in shares of First Horizon Corporation (NYSE:FHN) by 1.4% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 3,796,109 shares of the financial services provider’s stock after selling 52,979 shares during the period. Principal Financial Group Inc. owned about 0.79% of First Horizon worth $86,399,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Invesco Ltd. raised its holdings in shares of First Horizon by 5.6% in the fourth quarter. Invesco Ltd. now owns 8,033,759 shares of the financial services provider’s stock valued at $192,007,000 after acquiring an additional 426,951 shares in the last quarter. Norges Bank bought a new position in First Horizon during the 4th quarter worth about $153,942,000. William Blair Investment Management LLC increased its position in First Horizon by 2.2% during the 4th quarter. William Blair Investment Management LLC now owns 5,336,021 shares of the financial services provider’s stock valued at $127,531,000 after purchasing an additional 116,191 shares during the period. Morgan Stanley raised its holdings in shares of First Horizon by 10.4% in the 4th quarter. Morgan Stanley now owns 5,212,543 shares of the financial services provider’s stock valued at $124,580,000 after purchasing an additional 491,464 shares in the last quarter. Finally, Freestone Grove Partners LP raised its holdings in shares of First Horizon by 25.3% in the 3rd quarter. Freestone Grove Partners LP now owns 4,788,438 shares of the financial services provider’s stock valued at $108,267,000 after purchasing an additional 967,219 shares in the last quarter. 80.28% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about First Horizon

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

• Positive Sentiment: First Horizon reported second-quarter EPS of $0.54, topping expectations of $0.52, while revenue of $890 million also exceeded estimates. Net income available to common shareholders rose 12% year over year to $260 million, reflecting improved headline profitability. Article Title
• Positive Sentiment: Management’s results showed stronger earnings and higher profitability than a year ago, which supports the case that the bank is executing well operationally. Article Title
• Neutral Sentiment: Unusual call-option activity suggested some traders were positioning for upside ahead of the results, but that flow alone does not confirm a lasting shift in fundamentals.
• Neutral Sentiment: One commentary noted the stock still looks fairly valued near current levels, with solid credit quality but some concern that reserve levels and deposit mix could limit near-term upside. Article Title
• Negative Sentiment: Investors appear focused on deposit and funding-cost pressure, including reliance on more expensive brokered funding, which can compress net interest margin and weigh on future earnings growth. Article Title

First Horizon Stock Down 3.0%

Shares of First Horizon stock opened at $24.95 on Thursday. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.15. The company has a market cap of $11.84 billion, a P/E ratio of 12.47, a PEG ratio of 1.00 and a beta of 0.60. The firm’s 50 day moving average price is $24.72 and its 200-day moving average price is $24.25. First Horizon Corporation has a 52-week low of $19.80 and a 52-week high of $26.56.

First Horizon (NYSE:FHN) last posted its earnings results on Wednesday, July 15th. The financial services provider reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.02. The company had revenue of $890.00 million during the quarter, compared to analysts’ expectations of $878.42 million. First Horizon had a net margin of 20.54% and a return on equity of 11.65%. During the same quarter in the prior year, the company posted $0.45 earnings per share. On average, sell-side analysts predict that First Horizon Corporation will post 2.15 EPS for the current fiscal year.

First Horizon Dividend Announcement

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

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. UBS Group downgraded shares of First Horizon from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $29.00 to $25.00 in a research note on Tuesday, April 7th. Zacks Research lowered First Horizon from a “strong-buy” rating to a “hold” rating in a report on Friday, March 20th. DA Davidson reaffirmed a “neutral” rating and set a $26.00 target price on shares of First Horizon in a research report on Thursday, April 16th. Raymond James Financial lifted their price target on First Horizon from $26.00 to $28.00 and gave the company an “outperform” rating in a report on Wednesday, July 1st. Finally, Keefe, Bruyette & Woods boosted their price target on First Horizon from $25.00 to $26.00 and gave the stock a “market perform” rating in a research report on Thursday, April 16th. Nine research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $27.12.

First Horizon 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.