First Horizon National (NYSE:FHN) Shares Gap Up on Strong Earnings

First Horizon National Corp (NYSE:FHN) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $16.11, but opened at $16.56. First Horizon National shares last traded at $17.27, with a volume of 11,306,322 shares trading hands.

The financial services provider reported $0.47 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.42 by $0.05. First Horizon National had a net margin of 19.09% and a return on equity of 10.34%. The firm had revenue of $494.70 million during the quarter, compared to the consensus estimate of $468.61 million. During the same quarter in the previous year, the firm posted $0.35 earnings per share. The company’s revenue was up 19.8% on a year-over-year basis.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 2nd. Investors of record on Friday, December 13th were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a yield of 3.24%. The ex-dividend date of this dividend was Thursday, December 12th. First Horizon National’s dividend payout ratio (DPR) is 39.72%.

A number of brokerages recently commented on FHN. Keefe, Bruyette & Woods downgraded shares of First Horizon National from an “outperform” rating to a “market perform” rating and boosted their price objective for the stock from $17.00 to $17.50 in a research note on Wednesday, October 16th. Wells Fargo & Co lifted their price target on shares of First Horizon National from $17.00 to $19.00 and gave the stock an “outperform” rating in a report on Wednesday, October 2nd. ValuEngine raised shares of First Horizon National from a “strong sell” rating to a “sell” rating in a report on Friday, January 3rd. Zacks Investment Research lowered shares of First Horizon National from a “buy” rating to a “hold” rating and set a $16.00 price target on the stock. in a report on Wednesday, December 4th. Finally, Bank of America raised shares of First Horizon National from a “neutral” rating to a “buy” rating and set a $20.00 price objective on the stock in a report on Tuesday, November 5th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and five have given a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $18.21.

In related news, EVP Yousef A. Valine sold 28,249 shares of the company’s stock in a transaction dated Tuesday, November 5th. The shares were sold at an average price of $17.12, for a total transaction of $483,622.88. Following the completion of the transaction, the executive vice president now owns 229,371 shares in the company, valued at approximately $3,926,831.52. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.88% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in FHN. Quest Capital Management Inc. ADV bought a new position in shares of First Horizon National in the third quarter valued at about $42,000. Cerebellum GP LLC acquired a new position in shares of First Horizon National in the 3rd quarter valued at approximately $124,000. United Capital Financial Advisers LLC acquired a new position in shares of First Horizon National in the 2nd quarter valued at approximately $151,000. Cambridge Investment Research Advisors Inc. acquired a new position in shares of First Horizon National in the 2nd quarter valued at approximately $157,000. Finally, New England Research & Management Inc. acquired a new position in shares of First Horizon National in the 4th quarter valued at approximately $190,000. 81.82% of the stock is owned by institutional investors.

The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.94 and a current ratio of 0.96. The company has a 50-day moving average of $16.33 and a 200-day moving average of $16.03. The firm has a market capitalization of $5.10 billion, a price-to-earnings ratio of 12.25, a price-to-earnings-growth ratio of 1.25 and a beta of 1.31.

About First Horizon National (NYSE:FHN)

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association 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.

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