Many stocks have been testing new highs in 2020, and one of the most notable is First Horizon National Corporation (FHN). Currently, FHN is trading at $12.09 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $11.21.
To add more color to this target, the company’s high over the last year is $17.42 and the low is $6.27. Over the last 52 weeks, FHN is down -30.60% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, FHN reported a profit of $302.8 million. First Horizon National Corporation also saw revenues increase to $378.37 million. In addition, FHN has free cash flow of -$1.41 billion as of 03-2020.
FHN booked profit margins of 21.70%, its Return on Equity (ROE) is 7.50%, and its Return on Assets is 0.80%. All told, it is clear that, FHN needs to be on your watchlist.
About First Horizon National Corporation
If readers are unfamiliar, First Horizon National Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. It operates through four segments: Regional Banking, Fixed Income, Corporate, and Non-Strategic. The company offers general banking services for consumers, businesses, financial institutions, and governments. It is also involved in the underwriting of bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; loan sales; derivative sales; and provision of advisory services. In addition, the company offers brokerage services; correspondent banking services; transaction processing services comprising nationwide check clearing and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; and wealth management services. Further, it engages in mutual fund and retail insurance sales, as well as provides mortgage banking services. As of January 17, 2020, the company operated approximately 270 branches under the First Horizon Bank brand in the Southeast United States; and 29 offices in 18 states across the United States under the FHN Financial brand. The company was founded in 1864 and is headquartered in Memphis, Tennessee.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. FHN has a short ratio of 6.90 and outstanding shares of 311.60M.
FHN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 7.88 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.11. Investors should also keep an eye on sector updates as FHN has historically followed its peers on positive news.
All told, First Horizon National Corporation FHN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, FHN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
First Horizon National Corporation FHN is now commanding a market cap of 3.77B and a float of 307.27M. FHN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of FHN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in FHN, either long or short, and we have not been compensated for this article.