Local bank stocks in the US have been among some of the most watched over the past few years. This is because of high interest rates, which offer banks the ability to make more money but also create risks of high costs and portfolio sustainability. Within this turmoil, local bank stock performance has been mixed. Year to date, the KBW Regional Banking Index has lost more than 7% while the Dow Jones U.S. Select Regional Banks Index gained 2%. So, we thought to look at 12 Best Local Bank Stocks to Invest in Now and in this piece we’ll see if First Horizon Corporation (NYSE:FHN) is a top local bank stock.
First Horizon Corporation (NYSE:FHN)
First Horizon Corporation (NYSE:FHN) is a regional bank headquartered in Memphis, Tennessee. It was founded in 1864 and offers both regional and specialized banking services. These include typical banking products such as accounts, and other services such as credit finance and asset management.
Taking A Look At First Horizon Corporation (NYSE:FHN)’s Recent Performance
Regional banks have faced the heat this year due to trouble in the commercial real estate market. First Horizon Corporation (NYSE:FHN)’s first quarter results saw the bank report $184 million in net income and $0.33 in earnings per share. Its $0.35 adjusted EPS ended up beating consensus analyst estimates of $0.34 and made Q1 2024 the third consecutive quarter in which First Horizon Corporation (NYSE:FHN) had surpassed analyst estimates.
First Horizon Corporation (NYSE:FHN) And Hedge Fund Sentiment
By the end of this year’s first quarter, 47 out of the 933 hedge funds part of Insider Monkey’s database had bought stakes in First Horizon Corporation (NYSE:FHN). This meant that three hedge funds had exited their positions in the bank, despite the fact that the number of funds tracked by Insider Monkey remained the same. Among the funds, Israel Englader’s Millennium Management owned a notable stake that was worth $170 million.
First Horizon Corporation (NYSE:FHN) And Analyst Sentiment
Shifting towards analyst sentiment, the average of 14 one year share price targets for First Horizon Corporation (NYSE:FHN) is $14.72. The shares are rated Buy on average, and Wedbush, RBC, and Keefe, Bruyette & Woods have rated the stock as Outperform. Within the trio, RBC and Keefe, Bruyette & Woods’s ratings were upgraded in April 2024. In its note, the former shared that the bank has stable credit management, a healthy balance sheet, and impressive revenue growth. RBC also increased First Horizon Corporation (NYSE:FHN)’s share price target to $18 from $16 in April and reiterated the target in May.
Is First Horizon Corporation (NYSE:FHN) The Best Local Bank Stock?
Looking at the analyst sentiment, it seems like First Horizon Corporation (NYSE:FHN) is seeing some uptick in positive analyst sentiment. Its stock is also up by 11% year to date, enabling it to weather the storm even as other US local bank stocks falter in the face of high rates and real estate instability.
But what about insider sentiment? After all, corporate insiders often buy and sell shares, and First Horizon Corporation (NYSE:FHN) was not on our list of the top financial dividend stocks that insiders are buying.
For some such stocks, you can read 10 Best Financial Dividend Stocks Insiders are Buying in 2024.
Overall, FHN ranks 4th on our list of the 12 Best Local Bank Stocks to Buy.
- If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
- READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. Is First Horizon Corporation (NYSE:FHN) A Top Local Bank Stock? was originally published on Insidermonkey.com.