On September 3, 2023, it was reported that First Republic Investment Management Inc. decreased its stake in First Horizon Co. (NYSE:FHN) by 64.1% during the first quarter, according to the company’s disclosure with the Securities and Exchange Commission. The firm sold 2,225,827 shares of the financial services provider’s stock, resulting in First Republic Investment Management Inc. owning approximately 0.23% of First Horizon worth $22,209,000 at the end of the reporting period.
First Horizon (NYSE:FHN) released its earnings results on July 19th. The financial services provider reported earnings per share (EPS) of $0.39 for the quarter, surpassing analysts’ consensus estimates of $0.38 by $0.01. The company generated revenue of $1.42 billion for the quarter, exceeding analyst estimates of $820.19 million. With a net margin of 24.64% and a return on equity of 13.44%, First Horizon showcased solid financial performance.
Equities research analysts predict that First Horizon Co. will post earnings per share of 1.49 for the current fiscal year.
The market has been buzzing with analyst reports on FHN recently. Raymond James upgraded shares of First Horizon from a “market perform” rating to an “outperform” rating and set a price target of $13.00 on the stock in a research note on July 6th.
Jefferies Financial Group also raised their rating on shares of First Horizon from “hold” to “buy” in their research report on May 24th.
Furthermore, JPMorgan Chase & Co.’s analysts increased their price target on First Horizon from $13.00 to $13.50 on June 29th.
StockNews.com initiated coverage on First Horizon with a “sell” rating on August 17th.
However, Bank of America lowered its target price on First Horizon from $14.00 to $13.00 on June 8th.
Overall, FHN has received mixed ratings from analysts, with one rating the stock as a sell, four assigning a hold rating, and four giving it a buy rating. According to Bloomberg data, the average rating for the company is “Hold,” with an average target price of $15.42.
This recent development in First Republic Investment Management Inc.’s stake reduction along with First Horizon’s positive earnings results signifies changing investor sentiment towards the financial services provider.
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Recent Investment Activity and Analyst Reports Highlight Potential Opportunities and Risks for First Horizon
First Horizon, a financial services provider, has seen several large investors modify their holdings recently. Notably, Soros Fund Management LLC purchased a new position worth approximately $209,132,000 during the fourth quarter of last year.
Norges Bank also acquired a stake in First Horizon during the same period, with its investment valued at around $133,345,000. Caisse DE Depot ET Placement DU Quebec joined in by acquiring a stake worth about $44,982,000.
Goldman Sachs Group Inc. followed suit in boosting its existing stake in First Horizon by 62.6% during the first quarter of this year. The group now owns over 4 million shares of the company’s stock valued at $101,070,000. Lastly, Davide Leone & Partners Investment Co Ltd. acquired a new position worth $34,744,000 in First Horizon during the fourth quarter.
It is interesting to note that hedge funds and other institutional investors now own 76.44% of the company’s stock.
Shares of First Horizon opened at $12.55 on Friday and it currently has a market capitalization of $7.01 billion. With a quick ratio of 0.93 and a current ratio of 0.94, the company seems to have solid liquidity.
The stock’s fifty-day simple moving average stands at $12.55 while its two hundred-day simple moving average is at $14.92 – both being noteworthy factors for potential investors to consider.
Several recent analyst reports have shed some light on First Horizon’s future prospects as well. Raymond James upgraded their rating from “market perform” to “outperform,” setting a price target of $13.00 on the stock.
Jefferies Financial Group also raised their rating from “hold” to “buy” in their research report published on May 24th this year.
However, not all analysts share an optimistic view on First Horizon. StockNews.com initiated their coverage with a “sell” rating, emphasizing potential risks that investors should be aware of.
Earlier this year, JPMorgan Chase & Co. upped their price target to $13.50 from $13.00 while Bank of America lowered theirs from $14.00 to $13.00.
On another note, the company recently announced a quarterly dividend, which will be paid on Monday, October 2nd. Shareholders of record on Friday, September 15th will receive a $0.15 dividend per share.
In terms of insider trading activity, Director William H. Fenstermaker acquired 10,000 shares of First Horizon’s stock in June at an average price of $11.62 per share.
Overall, although First Horizon has attracted significant attention from investors and analysts alike due to recent modifications in holdings and fluctuating ratings, it remains a company with both potential benefits and risks for those considering investment opportunities in the financial services sector.
