First Horizon National Corporation (NYSE: FHN) – Suitable For Long Term Buy?


Dimensional Fund Advisors LP recently announced the acquisition of new stake in First Horizon National Corporation (NYSE:FHN). The institutional investor has increased its shareholding in the Financial company by 2.69% to 20.65 million shares with purchase of 0.54 million shares. This fresh investment now brings its stake to 3.73% valued currently at $191.46 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.81 million to 20.13 million shares. And Franklin Mutual Advisers LLC has lifted its position by 11.19% or 1.97 million shares – to 19.55 million shares.

With over 4.27 million First Horizon National Corporation (FHN) shares trading Tuesday and a closing price of $9.66 on the day, the dollar volume was approximately $41.26 million. The shares have shown a positive weekly performance of 0.42% and its price on 08/25/20 lost nearly -0.31%. Currently, there are 312.09M common shares owned by the public and among those 307.01M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for FHN have a consensus price objective of $11.89. The analysts have set the share’s price value over the next 12 months at a high of $14.00 and a low of $10.00 should the stock experience a downside. Incidentally, analysts’ outlook for the First Horizon National Corporation stock is 1.90 for the next 12 months. The average price target is 18.0% above its last price level and an upside to the estimated low will see the stock gain 3.4% over that period. But an upside of 31.0% will see the stock hit the forecast high price target while mean target price for the stock is $12.00.

Insiders at the company have transacted a total of 71 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 997,023 shares. Insider sales of the common stock occurred on 25 occasions, with total insider shares sold totaling 439,746 shares.

The top 3 mutual fund holders in First Horizon National Corporation are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 15.77 million shares of the company’s stock, all valued at over $146.22 million. The company bought an additional 0.31 million shares recently to bring their total holdings to about 2.85% of the shares outstanding. iShares Core S&P Mid Cap ETF sold 73847.0 shares to see its total holdings shrink to 14.66 million shares valued at over $135.89 million and representing 2.65% of the shares outstanding. Vanguard Small Cap Index Fund bought 0.21 million shares to bring its total holdings to over 13.74 million shares at a value of $127.34 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.48% of the shares outstanding.

Shares of First Horizon National Corporation (NYSE: FHN) opened at $9.88, up $0.19 from a prior closing price of $9.69. However, the script later closed the day at $9.66, down -0.31%. The company’s stock has a 5-day price change of 0.42% and -5.94% over the past three months. FHN shares are trading -41.67% year to date (YTD), with the 12-month market performance down to -37.68% lower. It has a 12-month low price of $6.27 and touched a high of $17.42 over the same period. Currently, 4.27 million shares have been traded, compared to an average intraday trading volume of 7.27 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.84%, 1.12%, and -19.31% respectively.

Institutional ownership of First Horizon National Corporation (NYSE: FHN) shares accounts for 57.60% of the company’s 312.09M shares outstanding. Mutual fund holders own 40.71%, while other institutional holders and individual stakeholders account for 53.45% and 2.53% respectively.

It has a market capitalization of $5.44B and a beta (3y monthly) value of 1.56. The stock’s trailing 12-month PE ratio is 10.42, while the earnings-per-share (ttm) stands at $0.93. The company has a PEG of 1.10 and the debt-to-equity ratio at 0.43. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.47% over the week and 3.57% over the month.

Analysts forecast that First Horizon National Corporation (FHN) will achieve an EPS of $0.23 for the current quarter, $0.32 for the next quarter and $1.3 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.12 while analysts give the company a high EPS estimate of $0.87. Comparatively, EPS for the current quarter was $0.43 a year ago. Earnings per share for the fiscal year are expected to decrease by -16.30%, and 61.17% over the next financial year. EPS should grow at an annualized rate of 9.50% over the next five years, compared to 8.90% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate First Horizon National Corporation (FHN) as a “Strong Buy” at a consensus score of 1.90. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 2 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the FHN, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on August 20, 2020, with the firm’s price target at $12. Morgan Stanley coverage for the First Horizon National Corporation (FHN) stock in a research note released on August 17, 2020 offered a Equal-Weight rating with a price target of $12. Evercore ISI was of a view on July 20, 2020 that the stock is Outperform, while Stephens gave the stock Overweight rating on March 25, 2020, issuing a price target of $13. Robert W. Baird on their part issued Outperform rating on March 02, 2020.


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