Regions Financial (NYSE:RF) Shares Gap Up Following Better-Than-Expected Earnings

Regions Financial Corporation (NYSE:RF)’s stock price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $24.51, but opened at $25.50. Regions Financial shares last traded at $25.52, with a volume of 2,269,411 shares changing hands.

The bank reported $0.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.56 by $0.04. The business had revenue of $1.91 billion during the quarter, compared to analysts’ expectations of $1.86 billion. Regions Financial had a return on equity of 13.04% and a net margin of 21.43%. The firm’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.52 earnings per share.

Regions Financial Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.265 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $1.06 annualized dividend and a dividend yield of 4.08%. This is a boost from Regions Financial’s previous quarterly dividend of $0.25. Regions Financial’s payout ratio is currently 48.08%.

Analyst Ratings Changes

A number of research firms recently commented on RF. The Goldman Sachs Group reduced their price objective on Regions Financial from $28.00 to $25.00 and set a “buy” rating for the company in a research report on Tuesday, April 22nd. Truist Financial reaffirmed a “hold” rating on shares of Regions Financial in a research report on Friday, May 23rd. JPMorgan Chase & Co. reduced their target price on shares of Regions Financial from $26.00 to $23.00 and set a “neutral” rating for the company in a report on Thursday, April 3rd. Wells Fargo & Company reduced their target price on shares of Regions Financial from $28.00 to $26.00 and set an “equal weight” rating for the company in a report on Friday, March 28th. Finally, Stephens reaffirmed an “overweight” rating and set a $24.00 target price on shares of Regions Financial in a report on Tuesday, June 3rd. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and twelve have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $26.15.

Hedge Funds Weigh In On Regions Financial

Large investors have recently bought and sold shares of the business. Farther Finance Advisors LLC lifted its holdings in shares of Regions Financial by 40.6% in the 4th quarter. Farther Finance Advisors LLC now owns 4,857 shares of the bank’s stock worth $114,000 after buying an additional 1,402 shares during the period. Natixis Advisors LLC lifted its holdings in shares of Regions Financial by 11.7% in the 4th quarter. Natixis Advisors LLC now owns 163,117 shares of the bank’s stock worth $3,837,000 after buying an additional 17,086 shares during the period. Generali Asset Management SPA SGR purchased a new stake in Regions Financial in the fourth quarter worth about $130,000. Xponance Inc. lifted its stake in Regions Financial by 12.2% in the fourth quarter. Xponance Inc. now owns 155,558 shares of the bank’s stock worth $3,659,000 after acquiring an additional 16,936 shares during the period. Finally, Harvest Fund Management Co. Ltd lifted its stake in Regions Financial by 415.8% in the fourth quarter. Harvest Fund Management Co. Ltd now owns 15,767 shares of the bank’s stock worth $371,000 after acquiring an additional 12,710 shares during the period. Hedge funds and other institutional investors own 79.39% of the company’s stock.

Regions Financial Trading Up 6.1%

The stock’s 50 day moving average is $22.78 and its two-hundred day moving average is $22.42. The company has a market capitalization of $23.37 billion, a PE ratio of 12.50, a price-to-earnings-growth ratio of 1.83 and a beta of 0.98. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.36.

About Regions Financial

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers. It operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management. The Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending; equipment lease financing; deposit products; and securities underwriting and placement, loan syndication and placement, foreign exchange, derivatives, merger and acquisition, and other advisory services.