DA Davidson has reiterated its buy rating on shares of Flagstar Bank, National Association (NYSE: FLG) in a report published on Thursday. The firm has set a target price of $14.50 for the stock, reflecting a positive outlook amid recent fluctuations in the banking sector.
Analysts continue to weigh in on Flagstar Bank, with several firms issuing their ratings in recent weeks. On September 25, TD Cowen initiated coverage with a hold rating and a price objective of $14.00. Meanwhile, Cantor Fitzgerald began coverage on September 10, providing an overweight rating and a target price of $15.00. Contrastingly, Weiss Ratings reiterated a sell rating with a score of D- on October 8, signaling concerns about the bank’s performance.
In a more favorable light, JPMorgan Chase & Co. increased its price objective for Flagstar from $12.50 to $14.00 while maintaining a neutral rating as of October 27. Additionally, Citigroup raised its target price from $15.50 to $16.50 and reiterated a buy rating on August 26. Overall, five analysts have rated Flagstar with a buy rating, six have issued a hold rating, and two have assigned a sell rating. According to data from MarketBeat.com, Flagstar Bank has a consensus rating of hold and an average price target of $13.88.
Quarterly Earnings and Dividend Announcement
Flagstar Bank recently reported its quarterly earnings on November 6, disclosing an earnings per share (EPS) of ($0.07). The bank recorded a negative net margin of 7.06% and a negative return on equity of 3.80%, with total revenue for the quarter amounting to $498.00 million. Analysts project that Flagstar will post an EPS of (0.31) for the current fiscal year.
The bank also announced a quarterly dividend of $0.01 per share, set to be paid on December 17 to stockholders of record as of December 7. The ex-dividend date is scheduled for December 5. This results in an annualized dividend of $0.04, giving the company a dividend yield of 0.4%. Notably, Flagstar’s dividend payout ratio stands at -4.12%, indicating a challenging financial landscape.
Institutional Investor Activity
Recent institutional activity highlights shifts in investor confidence regarding Flagstar Bank. Schonfeld Strategic Advisors LLC significantly increased its stake by 101.4% in the third quarter, acquiring an additional 167,731 shares to reach a total of 333,111 shares valued at $3.85 million. Similarly, Creative Planning raised its holdings by 95.8%, now owning 112,411 shares valued at $1.30 million.
Furthermore, Polar Asset Management Partners Inc. saw substantial growth, increasing its position by 268.4% to own 345,953 shares worth $3.99 million. Zurcher Kantonalbank Zurich Cantonalbank also increased its stake by 8.3%, and Two Sigma Investments LP raised its holdings by 132.5%, acquiring almost 1.70 million shares valued at $19.64 million. Overall, institutional investors and hedge funds now hold 67.88% of Flagstar’s stock.
Flagstar Bank, a bank holding company, provides a variety of banking products and services across the United States, including interest-bearing checking and savings accounts, money market accounts, and certificates of deposit. As it navigates through current market conditions, the reaffirmed buy rating from DA Davidson may provide some reassurance to investors looking for stability in their portfolios.
