DA Davidson has reiterated its “buy” rating for shares of Flagstar Bank, National Association (NYSE: FLG), placing a target price of $14.50 on the stock. This reaffirmation, reported on Thursday morning, comes amid a flurry of recent evaluations from various equity analysts regarding the bank’s market performance.
On September 25, TD Cowen initiated coverage on Flagstar Bank, assigning a “hold” rating and a price objective of $14.00. Shortly before that, on September 10, Cantor Fitzgerald began coverage with an “overweight” rating and a target price of $15.00. In contrast, Weiss Ratings provided a more cautious outlook, reiterating a “sell (D-)” rating on October 8.
Analysts remain divided in their assessments. On October 27, JPMorgan Chase & Co. raised its price target for Flagstar Bank from $12.50 to $14.00, maintaining a “neutral” rating. Meanwhile, Citigroup increased its target from $15.50 to $16.50 while also issuing a “buy” rating.
A survey of analysts shows that five have rated the stock as a buy, six have issued hold ratings, and two analysts have assigned sell ratings. According to data from MarketBeat.com, Flagstar Bank currently holds a consensus rating of “hold” with an average price target of $13.88.
Recent Financial Performance and Dividend Announcement
Flagstar Bank recently released its quarterly earnings data on November 6, reporting an earnings per share (EPS) of ($0.07). The bank experienced a negative net margin of 7.06% and a return on equity of (3.80%). During this quarter, the bank generated revenues of $498 million. Analysts predict that for the current fiscal year, Flagstar Bank will report an EPS of (0.31).
In addition to the earnings report, Flagstar Bank announced a quarterly dividend of $0.01 per share, which will be paid on December 17. Shareholders on record as of December 7 will be eligible for this dividend, with an ex-dividend date set for December 5. This dividend represents an annualized payout of $0.04, translating to a dividend yield of 0.4%. The bank’s dividend payout ratio currently stands at (4.12%), indicating a challenging financial environment for dividend sustainability.
Investor Activity and Institutional Holdings
Recent trends show significant changes in institutional ownership for Flagstar Bank. Notably, Schonfeld Strategic Advisors LLC 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 approximately $3.85 million.
Creative Planning also bolstered its holdings by 95.8%, now owning 112,411 shares worth about $1.30 million. Polar Asset Management Partners Inc. significantly expanded its position by 268.4%, acquiring 252,053 shares to total 345,953 shares, valued at around $4.0 million.
Additionally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake by 8.3% and Two Sigma Investments LP raised its position by 132.5%, now holding 1,699,958 shares, valued at roughly $19.63 million. Overall, institutional investors and hedge funds own 67.88% of Flagstar Bank’s stock, reflecting strong confidence from these financial entities.
Flagstar Bank operates primarily in the United States, providing a range of banking products and services. Its offerings include various types of deposit accounts, such as interest-bearing checking, savings, and certificates of deposit. As the financial landscape evolves, analysts and investors will closely monitor Flagstar Bank’s performance and strategic decisions in the coming quarters.
