Traders Buy High Volume of First Horizon Call Options (NYSE:FHN)

First Horizon Corporation (NYSE:FHN) was the recipient of unusually large options trading on Wednesday. Investors bought 202,507 call options on the company. This represents an increase of 919% compared to the typical volume of 19,872 call options.

Insider Activity

In other First Horizon news, CAO Jeff L. Fleming sold 7,619 shares of the company’s stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $21.74, for a total transaction of $165,637.06. Following the transaction, the chief accounting officer directly owned 128,626 shares in the company, valued at approximately $2,796,329.24. This represents a 5.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP David T. Popwell sold 155,149 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $21.31, for a total transaction of $3,306,225.19. Following the completion of the transaction, the executive vice president directly owned 307,432 shares in the company, valued at $6,551,375.92. This trade represents a 33.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.87% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Aaron Wealth Advisors LLC raised its stake in First Horizon by 5.4% during the 4th quarter. Aaron Wealth Advisors LLC now owns 9,905 shares of the financial services provider’s stock valued at $237,000 after buying an additional 511 shares during the last quarter. Wellington Shields Capital Management LLC grew its holdings in shares of First Horizon by 1.9% in the second quarter. Wellington Shields Capital Management LLC now owns 28,026 shares of the financial services provider’s stock worth $594,000 after acquiring an additional 514 shares during the period. AMG National Trust Bank increased its position in First Horizon by 0.6% during the third quarter. AMG National Trust Bank now owns 102,344 shares of the financial services provider’s stock valued at $2,314,000 after acquiring an additional 575 shares during the last quarter. Inspire Investing LLC lifted its holdings in First Horizon by 3.5% in the second quarter. Inspire Investing LLC now owns 18,383 shares of the financial services provider’s stock valued at $390,000 after acquiring an additional 624 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. lifted its holdings in First Horizon by 57.3% in the third quarter. Whittier Trust Co. of Nevada Inc. now owns 1,743 shares of the financial services provider’s stock valued at $39,000 after acquiring an additional 635 shares during the period. 80.28% of the stock is currently owned by institutional investors.

First Horizon Trading Up 4.4%

NYSE:FHN opened at $24.97 on Thursday. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.96 and a quick ratio of 0.95. The business’s 50-day simple moving average is $23.38 and its 200-day simple moving average is $22.50. First Horizon has a fifty-two week low of $15.19 and a fifty-two week high of $25.08. The stock has a market capitalization of $12.29 billion, a PE ratio of 13.28, a price-to-earnings-growth ratio of 0.90 and a beta of 0.61.

First Horizon (NYSE:FHN) last announced its earnings results on Thursday, January 15th. The financial services provider reported $0.52 EPS for the quarter, topping the consensus estimate of $0.46 by $0.06. The firm had revenue of $892.00 million for the quarter, compared to the consensus estimate of $863.87 million. First Horizon had a net margin of 19.67% and a return on equity of 11.21%. During the same period last year, the company posted $0.43 EPS. Sell-side analysts expect that First Horizon will post 1.67 earnings per share for the current fiscal year.

First Horizon Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, January 2nd. Shareholders of record on Friday, December 12th were paid a $0.15 dividend. The ex-dividend date of this dividend was Friday, December 12th. This represents a $0.60 annualized dividend and a dividend yield of 2.4%. First Horizon’s dividend payout ratio (DPR) is currently 31.91%.

First Horizon announced that its Board of Directors has approved a share repurchase plan on Monday, October 27th that permits the company to repurchase $1.20 billion in outstanding shares. This repurchase authorization permits the financial services provider to repurchase up to 11.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Analyst Ratings Changes

FHN has been the subject of a number of analyst reports. Wall Street Zen raised shares of First Horizon from a “sell” rating to a “hold” rating in a report on Saturday, November 15th. Jefferies Financial Group set a $25.00 price target on First Horizon and gave the stock a “buy” rating in a research report on Wednesday, October 15th. DA Davidson upped their price objective on First Horizon from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Friday, January 16th. Barclays increased their target price on First Horizon from $28.00 to $30.00 and gave the company an “overweight” rating in a research note on Friday, January 16th. Finally, National Bankshares set a $27.00 target price on First Horizon in a report on Friday, January 16th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $26.58.

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.