First Horizon (NYSE:FHN) Shares Gap Down – Should You Sell?

Shares of First Horizon Corporation (NYSE:FHN) gapped down before the market opened on Wednesday . The stock had previously closed at $25.72, but opened at $24.80. First Horizon shares last traded at $24.6420, with a volume of 1,639,862 shares trading hands.

Key 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

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the company. Wells Fargo & Company lifted their target price on First Horizon from $25.00 to $26.00 and gave the company an “equal weight” rating in a research report on Monday, July 6th. Zacks Research cut First Horizon from a “strong-buy” rating to a “hold” rating in a research report on Friday, March 20th. Truist Financial raised their price objective on First Horizon from $26.00 to $27.00 and gave the stock a “hold” rating in a research note on Friday, July 10th. Barclays lowered their price objective on First Horizon from $30.00 to $29.00 and set an “overweight” rating on the stock in a research report on Tuesday, April 7th. Finally, DA Davidson reaffirmed a “neutral” rating and set a $26.00 price target on shares of First Horizon in a report on Thursday, April 16th. Nine equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $27.16.

First Horizon Stock Up 1.4%

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. 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 has a 50-day moving average price of $24.74 and a 200 day moving average price of $24.26.

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

First Horizon Announces Dividend

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

Hedge Funds Weigh In On First Horizon

Institutional investors have recently bought and sold shares of the stock. Kestra Investment Management LLC lifted its stake in First Horizon by 873.1% in the 2nd quarter. Kestra Investment Management LLC now owns 1,625 shares of the financial services provider’s stock worth $34,000 after purchasing an additional 1,458 shares in the last quarter. Geneos Wealth Management Inc. grew its position in shares of 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 in the last quarter. Basecamp Wealth Advisors LLC grew its position in shares of First Horizon by 56.2% during the first quarter. Basecamp Wealth Advisors LLC now owns 2,073 shares of the financial services provider’s stock valued at $47,000 after purchasing an additional 746 shares in the last quarter. Cary Street Partners Investment Advisory LLC increased its holdings in shares of First Horizon by 1,348.2% in the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 2,013 shares of the financial services provider’s stock worth $48,000 after purchasing an additional 1,874 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of First Horizon in the fourth quarter worth about $51,000. 80.28% of the stock is owned by hedge funds and other institutional investors.

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.