First Horizon National Corporation (FHN) Stock Doesn’t Offer Much Upside?

The First Horizon National Corporation (NYSE:FHN) bears won the day, but the reality is that the -0.18 points or -1.15 percent decline gave very little definitive technical indication of where the stock could be headed next. On 06 December, the shares traded at $15.41 with a heavy trade volume of 4.377 million shares. After opening the session at $15.38, the shares went as high as $15.45 and as low as $14.9, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $4.93 billion and now has 320.01 million shares outstanding. First Horizon National Corporation (FHN) stock has lost -5.81 percent of market value in 21 trading days.

FHN stock has a trailing 3-year beta of 0.93, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.46 a share in the trailing twelve months. The stock’s value has fallen -22.91 percent year to date (YTD) against a decline of -22.68 percent in 12 month’s time. The company’s shares still trade -26.13 percent away from its 1-year high of $20.86 and 3.15 percent up from 52-week low of $14.94. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

First Horizon National Corporation (FHN) will probably climb 22.19 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $21-month high price target. This represents a whopping 36.28 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $18.75, which represents a return potential of 21.67 percent when compared to the closing price of the stock of $15.41 on Thursday, December 06. The lowest price target for the stock is $17 — slightly more than 10.32 percent from FHN’s current share price.

History has shown that shares in First Horizon National Corporation have gone down on 25 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of FHN’s Q4 earnings on January 18. Analysts are forecasting revenue to climb 18.2 percent to $444M in the fiscal fourth quarter, while earnings are seen soaring by nearly 20 percent to $0.36 per share. It earned $0.36 per share, in line with the $0.36, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $442M, worse than the $445M analysts expected. Earnings are estimated to increase by 5.2 percent this year, 9.56 percent next year and continue to increase by 12.22 percent annually for the next 5 years.

Let’s take a look at some insider activity at First Horizon National Corporation (NYSE:FHN) and see the pattern. The earliest insider trade took place on 10/31/2018. Valine Yousef A. gathered a total of 3 thousand shares of company at average share price of $16.29. The total for the purchase was set at $48.87 thousand. After this transaction, the EVP & Chief Risk Officer account balance stood at 186.45 thousand shares. The stock lost -5.4 percent since that insider purchase. On 10/19/2018, Niswonger Scott M, Director, purchased 50 thousand shares at a price per share of $15.76. This added 788 thousand shares to the insider’s fortune and the stock saw a -2.22 percent retreat in value since the news became public. This transaction left 689.45 thousand shares in the Director account.

On 10/17/2018, President-Banking Popwell David T performed a purchase transaction worth $250.11 thousand. This purchase at $15.88 each has added 15.75 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -2.96 percent decrease since the transaction was reported. The insider now is left with 301.34 thousand shares remaining in the account. Niswonger Scott M, who performs the Director job, bought 100 thousand shares for $1.82 million. The acquisition occurred on 08/01/2018 was priced at $18.2 per share. The share price plunged -15.33 percent since the reporting date. Niswonger Scott M now left with a stake of 639.4 thousand FHN stock worth $9.85 million after the insider buying.

The stock is currently hovering around the first support level of $15.06. Below this, the next support is placed in the zone of $14.7. Till the time, the FHN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 33.44 on daily chart, which may remain a cause for comfort. If the price breaks below $14.7 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.61 mark may result into a pull-back move towards $15.8 level.

Shares of First Horizon National Corporation (FHN) are trading at a P/E ratio of 17.36 times earnings reported for the past 12 months. The industry FHN operates in has an average P/E of 19.02. Its P/E ratio went as low as 15.07X and as high as 120.33 over the 5-year span.Further, it is sporting a 3.44 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.73.