Paloma Partners Management Co Acquires Stake in First Horizon Co.

Paloma Partners Management Co has acquired a new stake in First Horizon Co. (NYSE:FHN) during the third quarter, as revealed by its latest Form 13F filing with the Securities and Exchange Commission. The firm purchased 25,608 shares of this financial services provider's stock, valued at around $398,000.

In addition to Paloma Partners, various other institutional investors have also adjusted their positions in First Horizon recently. UMB Bank n.a. significantly increased its stake by 365.0% in the third quarter, now owning 1,688 shares valued at approximately $26,000 after adding 1,325 shares. Additionally, Family Firm Inc. entered the market with a new stake valued at about $28,000 during the second quarter. Nemes Rush Group LLC also boosted its holdings by 306.2% during the same period, bringing its total up to 1,828 shares valued at $29,000 after acquiring 1,378 shares. Similarly, Industrial Alliance Investment Management Inc. established a new position worth roughly $31,000, while Covestor Ltd increased its stake by 44.0% in the third quarter with a total of 2,130 shares valued at $34,000, after purchasing an extra 651 shares. Overall, institutional investors hold around 80.28% of First Horizon's stock.

First Horizon Trading Update

On Thursday, First Horizon shares opened at $20.70. The company boasts a fifty-day moving average of $18.06 and a two-hundred-day moving average of $16.52. With a market capitalization of $10.97 billion, it has a price-to-earnings (P/E) ratio of 15.00 and a PEG ratio of 1.55 along with a beta of 0.91. Over the past year, the stock reached a low of $12.95 and a high of $21.72. It currently has a quick ratio of 0.95, a current ratio of 0.96, and a debt-to-equity ratio of 0.14.

Recent Performance and Earnings Report

First Horizon recently reported its quarterly earnings on October 16th. The company announced earnings per share (EPS) of $0.42 for the quarter, surpassing the consensus estimate of $0.38 by $0.04. The firm recorded a return on equity of 9.51% and net margins of 15.43%. Revenue for the quarter was $1.32 billion, significantly beating the consensus estimate of $821.63 million, as last year it posted an EPS of $0.27. Analysts predict that First Horizon will report an EPS of 1.49 for the current fiscal year.

Dividend and Share Buyback Announcement

First Horizon also announced a quarterly dividend, set to be paid on January 2nd. Shareholders recorded as of December 13th will receive a $0.15 dividend, leading to an annualized dividend of $0.60, which provides a yield of 2.90%. The company’s current dividend payout ratio stands at 43.48%. Furthermore, First Horizon's board approved a share buyback program on October 29th, allowing the firm to repurchase up to $1 billion in shares, equating to approximately 10.6% of its outstanding shares, indicating the board's confidence in the stock's valuation.

Analysts' Price Targets

Recent reports from several research analysts indicate a bullish outlook for First Horizon. Stephens increased their price target from $18.00 to $20.00, rating the stock as “overweight.” Similarly, Goldman Sachs raised its target from $18.50 to $23.00, maintaining a “neutral” rating. Royal Bank of Canada also uplifted its target from $19.00 to $20.00 with an “outperform” rating, while Evercore ISI increased its target to $20.00 as well. Barclays set a price target of $23.00 from a previous $21.00 with an “overweight” rating. Overall, analysts have a mix of hold and buy ratings on the stock, with a consensus target price at $19.46 and a general rating of “Moderate Buy.”

Insider Trading Activity

In insider news, David T. Popwell, the executive vice president, sold 100,974 shares of First Horizon stock at an average price of $19.77 on November 7th, totaling about $1.99 million. Following this sale, he retains 519,926 shares valued at approximately $10.28 million, representing a 16.26% decrease in his holdings. Also, director Harry V. Barton, Jr. sold 10,000 shares on November 12th at an average price of $19.92, yielding about $199,200, which reflects a 5.65% reduction in his ownership. Insider holdings account for 0.87% of the company’s total shares.

About First Horizon Co.

First Horizon Corporation functions as a bank holding company, operating through First Horizon Bank, which delivers a variety of financial services. The company is divided into two main segments: Regional Banking and Specialty Banking, offering general banking services to consumers, businesses, financial institutions, and government entities.

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