On May 5, 2023 at 11:58:06 ET an unusually large $25,987.50K block of Put contracts in First Horizon (FHN) was bought, with a strike price of $20.00 / share, expiring in 224 day(s) (on December 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 254.40 sigmas above the mean, placing it in the 100.00th percentile of all recent large trades made in FHN options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 1039 funds or institutions reporting positions in First Horizon. This is an increase of 36 owner(s) or 3.59% in the last quarter. Average portfolio weight of all funds dedicated to FHN is 0.35%, a decrease of 5.25%. Total shares owned by institutions decreased in the last three months by 0.98% to 467,613K shares. The put/call ratio of FHN is 2.21, indicating a bearish outlook.

Analyst Price Forecast Suggests 133.20% Upside

As of April 24, 2023, the average one-year price target for First Horizon is 23.46. The forecasts range from a low of 18.18 to a high of $26.25. The average price target represents an increase of 133.20% from its latest reported closing price of 10.06.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for First Horizon is 3,456MM, an increase of 9.02%. The projected annual non-GAAP EPS is 1.98.

What are Other Shareholders Doing?

Barclays holds 17,674K shares representing 3.29% ownership of the company. In it’s prior filing, the firm reported owning 15,669K shares, representing an increase of 11.35%. The firm increased its portfolio allocation in FHN by 30,046.11% over the last quarter.

IJH – iShares Core S&P Mid-Cap ETF holds 16,571K shares representing 3.08% ownership of the company. In it’s prior filing, the firm reported owning 15,681K shares, representing an increase of 5.37%. The firm decreased its portfolio allocation in FHN by 1.32% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 16,287K shares representing 3.03% ownership of the company. In it’s prior filing, the firm reported owning 16,033K shares, representing an increase of 1.56%. The firm increased its portfolio allocation in FHN by 0.36% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 13,830K shares representing 2.57% ownership of the company. In it’s prior filing, the firm reported owning 13,624K shares, representing an increase of 1.49%. The firm increased its portfolio allocation in FHN by 0.54% over the last quarter.

Franklin Resources holds 11,773K shares representing 2.19% ownership of the company. In it’s prior filing, the firm reported owning 11,138K shares, representing an increase of 5.40%. The firm increased its portfolio allocation in FHN by 7.87% over the last quarter.

First Horizon Declares $0.15 Dividend

On April 25, 2023 the company declared a regular quarterly dividend of $0.15 per share ($0.60 annualized). Shareholders of record as of June 16, 2023 will receive the payment on July 3, 2023. Previously, the company paid $0.15 per share.

At the current share price of $10.06 / share, the stock’s dividend yield is 5.96%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.74%, the lowest has been 2.42%, and the highest has been 8.81%. The standard deviation of yields is 1.26 (n=237).

The current dividend yield is 1.77 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.34. 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.

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.

See all First Horizon regulatory filings.

This article originally appeared on Fintel

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