Valued at a market cap of $20.3 billion, Regions Financial Corporation (RF) is a full-service provider of consumer and commercial banking, wealth management, and mortgage products and services. Based in Birmingham, Alabama, the company operates through three segments: Corporate Bank, Consumer Bank, and Wealth Management.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks and Regional Financial fits this criterion perfectly. The company is one of the nation’s largest full-service providers and serves customers across the South, Midwest and Texas. Its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs.
However, the company declined 19.8% from its 52-week high of $27.96. Over the past three months, RF dropped 6.7%, performing slightly weaker than the iShares U.S. Regional Banks ETF’s (IAT) 6.3% dip.
In the longer term, Regional Financial has slipped 4.7% on a YTD basis, whereas IAT edged down 5.4%. However, shares of RF have risen 12.4% over the past 52 weeks, lagging behind IAT’s 13.9% gain over the same time frame.
RF has been trading below its 50-day moving average since mid-December. Also, the stock has fallen below its 200-day moving average since March.
Shares of Regions Financial reported a 38% year-over-year increase in Q4 2024 net income to $508 million, or $0.56 per share. Capital markets income more than doubled, and wealth management income grew 7.7%, benefiting from a resurgence in dealmaking activity. Additionally, the bank’s provision for credit losses dropped to $120 million, and while net interest income (NII) remained flat at $1.2 billion, the company projected 2% - 5% NII growth in 2025. However, RF shares fell 1.3% on Jan. 17.
Additionally, in comparison, rival ACNB Corporation (ACNB) has surpassed RF. ACNB is up 3.8% on a YTD basis and 17.8% over the past 52 weeks.
Despite RF’s underperformance relative to its industry peers over the past year, analysts are moderately optimistic about its prospects. RF has a consensus rating of “Moderate Buy” from the 23 analysts covering the stock. As of writing, Regions Financial is trading below the mean price target of $27.26.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
