Flagstar Financial (NYSE:FLG) Shares Gap Down on Disappointing Earnings

Flagstar Financial, Inc. (NYSE:FLG)’s stock price gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $12.05, but opened at $11.27. Flagstar Financial shares last traded at $11.27, with a volume of 2,880,332 shares trading hands.

The company reported ($0.14) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.02). Flagstar Financial had a negative net margin of 14.21% and a negative return on equity of 9.68%. The company had revenue of $496.00 million for the quarter, compared to analysts’ expectations of $524.33 million. Flagstar Financial’s revenue for the quarter was down 26.1% compared to the same quarter last year.

Flagstar Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 17th. Stockholders of record on Sunday, September 7th will be issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.35%. Flagstar Financial’s payout ratio is -1.54%.

Analyst Ratings Changes

Several research analysts have recently weighed in on FLG shares. Stephens reissued an “equal weight” rating and set a $12.50 price objective on shares of Flagstar Financial in a report on Thursday, June 12th. Wall Street Zen cut shares of Flagstar Financial from a “hold” rating to a “sell” rating in a report on Thursday, May 22nd. Truist Financial cut their target price on shares of Flagstar Financial from $13.00 to $12.00 and set a “hold” rating for the company in a research report on Friday, July 11th. JPMorgan Chase & Co. cut their target price on shares of Flagstar Financial from $13.00 to $12.00 and set a “neutral” rating for the company in a research report on Tuesday, July 1st. Finally, Citigroup boosted their target price on shares of Flagstar Financial from $15.00 to $15.50 and gave the company a “buy” rating in a research report on Thursday, May 15th. One research analyst has rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, Flagstar Financial currently has an average rating of “Hold” and a consensus target price of $13.22.

Institutional Trading of Flagstar Financial

Large investors have recently added to or reduced their stakes in the business. Liberty 77 Capital L.P. bought a new position in shares of Flagstar Financial in the first quarter worth approximately $871,500,000. Reverence Capital Partners L.P. bought a new position in shares of Flagstar Financial in the first quarter worth approximately $418,101,000. Vanguard Group Inc. bought a new position in shares of Flagstar Financial in the first quarter worth approximately $378,161,000. T. Rowe Price Investment Management Inc. bought a new position in shares of Flagstar Financial in the first quarter worth approximately $76,911,000. Finally, Azora Capital LP bought a new position in shares of Flagstar Financial in the first quarter worth approximately $74,133,000. 67.88% of the stock is currently owned by institutional investors.

Flagstar Financial Trading Down 5.0%

The firm has a market capitalization of $4.75 billion, a P/E ratio of -4.40 and a beta of 1.10. The stock’s 50-day simple moving average is $11.49 and its two-hundred day simple moving average is $11.38. The company has a debt-to-equity ratio of 1.85, a current ratio of 1.06 and a quick ratio of 1.06.

Flagstar Financial Company Profile

Flagstar Financial, Inc operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit.