First Horizon (NYSE:FHN) National Corporation (FHN) stock has reached a new 52-week high, touching $20.53, signaling a robust performance over the past year. Investors have witnessed a significant appreciation in value, with the stock experiencing a 68.81% increase over the one-year period. This impressive ascent reflects investor confidence and the company's strong financial health, as it outpaces many of its peers in the banking sector. The 52-week high milestone is a testament to First Horizon's strategic initiatives and operational resilience in a dynamic economic landscape.
In other recent news, First Horizon National Corporation has seen its stock target upgraded by various firms, following a strong third quarter performance. Baird, RBC Capital Markets, and Stephens raised their price targets to $17, $20, and $20 respectively, while maintaining their respective ratings. Citi also increased its target to $20, maintaining a Buy rating. These adjustments came after First Horizon reported third-quarter earnings per share at $0.40, surpassing expectations and net charge-offs were significantly lower than the estimated 0.28%.
The company's third quarter also saw an adjusted earnings per share increase of $0.06 from the previous quarter, and a pre-provision net revenue rise of $11 million. Analysts from these firms highlighted First Horizon's ability to offset pressures on net interest income and margin with strong fee income and fixed-income trading activities. The company's management is preparing for the bank to cross the $100 billion asset threshold while maintaining an 11% Common equity Tier 1 (CET1) ratio.
These are recent developments for First Horizon, with analysts suggesting that ongoing margin challenges will be offset by a positive trend in revenue projections, driven by fee-based income momentum. Despite robust deposit growth, loan growth remains muted due to market factors. The revenue outlook remains unchanged, but analysts suggest it may lean more towards fee income.
InvestingPro Insights
First Horizon's recent achievement of a new 52-week high is further supported by InvestingPro data, which shows the stock trading at 98.25% of its 52-week high. This aligns with the article's emphasis on the company's robust performance. The stock's impressive trajectory is underscored by its remarkable 72.96% total return over the past year, slightly higher than the 68.81% mentioned in the article.
InvestingPro Tips highlight that First Horizon has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder value that likely contributes to investor confidence. Additionally, the company's strong returns over the last month and three months (16.25% and 28.18% respectively) indicate sustained momentum beyond the one-year performance discussed in the article.
With a P/E ratio of 14.62 and a market capitalization of $10.8 billion, First Horizon appears to be reasonably valued relative to its earnings, potentially attracting value-oriented investors. The company's profitability over the last twelve months, as noted by InvestingPro, further supports the positive sentiment reflected in its stock price.
For readers interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide valuable insights into First Horizon's financial outlook and market position.
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