DA Davidson has reiterated its “Buy” rating for shares of Flagstar Bank, National Association (NYSE: FLG), setting a target price of $14.50. This announcement came in a report issued on Thursday morning, according to Benzinga. The reaffirmation of the buy rating reflects the bank’s continued optimism regarding Flagstar’s market performance.
Several analysts have recently shared their assessments of Flagstar Bank. On September 25, 2023, TD Cowen initiated coverage with a “Hold” rating and a target price of $14.00. In a report dated September 10, 2023, Cantor Fitzgerald initiated coverage as well, assigning an “Overweight” rating with a target price of $15.00. Contrasting these positive evaluations, Weiss Ratings issued a “Sell (D-)” rating on October 8, 2023. On October 27, 2023, JPMorgan Chase & Co. raised its price target from $12.50 to $14.00 while maintaining a “Neutral” rating.
As it stands, five analysts have rated Flagstar Bank with a “Buy” rating, six have given a “Hold” rating, and two have assigned a “Sell” rating. Based on data from MarketBeat.com, the stock currently holds a consensus rating of “Hold” with an average price target of $13.88.
Recent Financial Performance and Dividend Announcement
Flagstar Bank recently reported its quarterly earnings on November 6, 2023. The company recorded an earnings per share (EPS) of ($0.07) for the quarter, with a negative net margin of 7.06% and a return on equity of (3.80%). Revenue for the quarter totaled $498 million. Analysts project that Flagstar will post an EPS of (0.31) for the current fiscal year.
In addition to its earnings report, Flagstar Bank has announced a quarterly dividend of $0.01 per share, set to be paid on December 17, 2023. Shareholders of record as of December 7, 2023, will be eligible for this dividend, with an ex-dividend date of December 5, 2023. This represents an annualized dividend of $0.04 and a dividend yield of 0.4%. Notably, the dividend payout ratio stands at -4.12%.
Institutional Investment Activity
Recent changes in institutional ownership reflect growing interest in Flagstar Bank. Schonfeld Strategic Advisors LLC increased its stake in the bank by 101.4% during the third quarter, now holding 333,111 shares valued at $3.847 million after acquiring an additional 167,731 shares. Creative Planning also raised its position by 95.8%, bringing its total to 112,411 shares valued at $1.298 million.
Polar Asset Management Partners Inc. significantly boosted its position in Flagstar by 268.4%, now owning 345,953 shares valued at $3.996 million. Zurcher Kantonalbank Zurich Cantonalbank increased its stake by 8.3%, now holding 62,548 shares worth $722,000. Two Sigma Investments LP also raised its position by 132.5%, owning 1,699,958 shares valued at $19.635 million.
Overall, institutional investors and hedge funds own approximately 67.88% of Flagstar Bank’s shares, indicating robust institutional confidence in the bank’s future prospects.
Flagstar Bank, National Association operates as the bank holding company for Flagstar Bank, N.A., providing a range of banking products and services throughout the United States. Its offerings include interest-bearing checking and money market accounts, savings accounts, retirement accounts, and certificates of deposit.
