Fintel reports that on October 5, 2023, Wedbush initiated coverage of First Horizon (NYSE:FHN) with a Neutral recommendation.
Analyst Price Forecast Suggests 34.03% Upside
As of October 5, 2023, the average one-year price target for First Horizon is 14.05. The forecasts range from a low of 12.12 to a high of $16.80. The average price target represents an increase of 34.03% from its latest reported closing price of 10.48.
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The projected annual revenue for First Horizon is 3,456MM, an increase of 7.50%. The projected annual non-GAAP EPS is 1.98.
First Horizon Declares $0.15 Dividend
On July 25, 2023 the company declared a regular quarterly dividend of $0.15 per share ($0.60 annualized). Shareholders of record as of September 15, 2023 received the payment on October 2, 2023. Previously, the company paid $0.15 per share.
At the current share price of $10.48 / share, the stock's dividend yield is 5.73%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.94%, the lowest has been 2.42%, and the highest has been 8.81%. The standard deviation of yields is 1.27 (n=236).
The current dividend yield is 1.40 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.30. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 985 funds or institutions reporting positions in First Horizon. This is a decrease of 52 owner(s) or 5.01% in the last quarter. Average portfolio weight of all funds dedicated to FHN is 0.23%, a decrease of 31.15%. Total shares owned by institutions decreased in the last three months by 2.64% to 464,240K shares. 
The put/call ratio of FHN is 0.33, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 16,720K shares representing 2.99% ownership of the company. In it's prior filing, the firm reported owning 16,600K shares, representing an increase of 0.72%. The firm decreased its portfolio allocation in FHN by 41.09% over the last quarter.
IJH - iShares Core S&P Mid-Cap ETF holds 16,314K shares representing 2.92% ownership of the company. In it's prior filing, the firm reported owning 16,555K shares, representing a decrease of 1.47%. The firm decreased its portfolio allocation in FHN by 40.16% over the last quarter.
Wellington Management Group Llp holds 15,707K shares representing 2.81% ownership of the company. In it's prior filing, the firm reported owning 804K shares, representing an increase of 94.88%. The firm increased its portfolio allocation in FHN by 1,081.10% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 13,885K shares representing 2.49% ownership of the company. In it's prior filing, the firm reported owning 14,053K shares, representing a decrease of 1.21%. The firm decreased its portfolio allocation in FHN by 40.42% over the last quarter.
Balyasny Asset Management holds 12,783K shares representing 2.29% ownership of the company. In it's prior filing, the firm reported owning 3,476K shares, representing an increase of 72.81%. The firm increased its portfolio allocation in FHN by 106.92% over the last quarter.
First Horizon Background Information
(This description is provided by the company.)
First Horizon Corp., with $84 billion in assets, is a leading regional financial services company, dedicated to strengthening the lives of its associates, clients, shareholders, and communities. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates nearly 500 bank locations in 12 states across the Southeast. With more than 288 years of combined First Horizon Bank and IBERIABANK financial experience, the Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, mortgage, and title insurance services. First Horizon is recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. bank.
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