First Horizon National (FHN) Lowered to “Sell” at Zacks Investment Research

First Horizon National (NYSE:FHN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Friday.

According to Zacks, “Shares of First Horizon has underperformed the industry in the past six months. The company has displayed a decent earnings surprise history, having surpassed the Zacks Consensus Estimate for earnings in one of the trailing four quarters, with two in-line results. Its efforts to strengthen core Tennessee banking franchise and inorganic growth strategies bode well for the long term. Also, focus to enhance shareholders’ value through capital deployment activities encourages us. Nonetheless, consistently rising expenses are likely to weigh on the company’s profitability to some extent. Also, significant exposure to commercial loans remains a concern.”

FHN has been the subject of several other reports. TheStreet cut First Horizon National from a “b-” rating to a “c+” rating in a research note on Thursday, December 27th. Robert W. Baird assumed coverage on First Horizon National in a research note on Thursday, December 20th. They issued a “neutral” rating for the company. Bank of America cut First Horizon National from a “neutral” rating to an “underperform” rating in a research note on Tuesday, January 22nd. They noted that the move was a valuation call. Morgan Stanley cut their price target on First Horizon National from $19.00 to $18.00 and set an “equal weight” rating for the company in a research note on Tuesday, December 11th. Finally, Raymond James cut First Horizon National from an “outperform” rating to a “market perform” rating in a research note on Monday, January 7th. Three research analysts have rated the stock with a sell rating, four have given a hold rating and six have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $20.15.

Shares of NYSE:FHN traded up $0.04 during trading on Friday, reaching $14.91. 37,087 shares of the stock were exchanged, compared to its average volume of 3,065,817. First Horizon National has a 12 month low of $12.30 and a 12 month high of $20.21. The stock has a market cap of $4.71 billion, a PE ratio of 10.57, a P/E/G ratio of 1.48 and a beta of 1.20. The company has a quick ratio of 0.92, a current ratio of 0.94 and a debt-to-equity ratio of 0.25.

First Horizon National (NYSE:FHN) last issued its quarterly earnings results on Friday, January 18th. The financial services provider reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.36 by ($0.01). The company had revenue of $412.80 million during the quarter, compared to the consensus estimate of $443.30 million. First Horizon National had a net margin of 24.02% and a return on equity of 10.22%. The company’s quarterly revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the firm posted ($0.20) earnings per share. Equities research analysts expect that First Horizon National will post 1.51 earnings per share for the current year.

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in shares of First Horizon National by 1.5% during the third quarter. Vanguard Group Inc. now owns 30,152,044 shares of the financial services provider’s stock worth $520,425,000 after buying an additional 458,506 shares in the last quarter. Vanguard Group Inc increased its holdings in shares of First Horizon National by 1.5% during the third quarter. Vanguard Group Inc now owns 30,152,044 shares of the financial services provider’s stock worth $520,425,000 after buying an additional 458,506 shares in the last quarter. BlackRock Inc. increased its holdings in shares of First Horizon National by 0.9% during the fourth quarter. BlackRock Inc. now owns 29,426,776 shares of the financial services provider’s stock worth $387,255,000 after buying an additional 275,221 shares in the last quarter. FMR LLC increased its holdings in shares of First Horizon National by 35.6% during the fourth quarter. FMR LLC now owns 26,423,350 shares of the financial services provider’s stock worth $347,731,000 after buying an additional 6,941,161 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. increased its holdings in shares of First Horizon National by 21.7% during the third quarter. Fuller & Thaler Asset Management Inc. now owns 14,669,760 shares of the financial services provider’s stock worth $253,200,000 after buying an additional 2,617,314 shares in the last quarter. Institutional investors and hedge funds own 87.73% of the company’s stock.

About First Horizon National

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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