Regions Financial Corporation (NYSE: RF) stock fell -2.56% on Friday to $21.31 against a previous-day closing price of $21.87. With 6.24 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.14 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $22.06 whereas the lowest price it dropped to was $21.26. The 52-week range on RF shows that it touched its highest point at $25.57 and its lowest point at $18.01 during that stretch. It currently has a 1-year price target of $24.58. With its current market cap of 20.38 billion, RF has annualized dividend of $0.80 while the current yield stands at 3.75%. Beta for the stock currently stands at 1.27.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RF was down-trending over the past week, with a drop of -5.04%, but this was down by -3.36% over a month. Three-month performance surged to 15.69% while six-month performance fell -6.12%. The stock gained 9.17% in the past year, while it has lost -2.25% so far this year. A look at the trailing 12-month EPS for RF yields 2.23 with Next year EPS estimates of 2.45. For the next quarter, that number is 0.59. This implies an EPS growth rate of 141.90% for this year and 5.50% for next year. EPS is expected to decline by -0.64% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 23.60%.
Float and Shares Shorts:
At present, 934.00 million RF shares are outstanding with a float of 929.64 million shares on hand for trading. On Jul 14, 2022, short shares totaled 18.58 million, which was 1.99% higher than short shares on Jun 14, 2022. In addition to Mr. John M. Turner Jr. as the firm’s Pres, CEO & Director, Mr. David Jackson Turner Jr. serves as its Sr. EVP & CFO.
Through their ownership of 77.71% of RF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.50% of RF, in contrast to 28.90% held by mutual funds. Shares owned by individuals account for 2.06%. As the largest shareholder in RF with 11.58% of the stake, The Vanguard Group, Inc. holds 108,231,522 shares worth 108,231,522. A second-largest stockholder of RF, BlackRock Fund Advisors, holds 63,592,201 shares, controlling over 6.81% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in RF, holding 52,987,219 shares or 5.67% stake. With a 2.96% stake in RF, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 27,671,243 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of RF stock, is the second-largest Mutual Fund holder. It holds 21,455,958 shares valued at 464.95 million. Vanguard 500 Index Fund holds 2.23% of the stake in RF, owning 20,869,782 shares worth 452.25 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RF since 26 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RF analysts setting a high price target of $30.00 and a low target of $20.00, the average target price over the next 12 months is $24.58. Based on these targets, RF could surge 40.78% to reach the target high and fall by -6.15% to reach the target low. Reaching the average price target will result in a growth of 15.34% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RF will report FY 2022 earnings on 01/20/2023. Analysts have provided yearly estimates in a range of $2.49 being high and $2.25 being low. For RF, this leads to a yearly average estimate of $2.33. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Regions Financial Corporation surprised analysts by $0.06 when it reported $0.59 EPS against a consensus estimate of $0.53. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.70 and the low estimate is $0.55. The average estimate for the next quarter is thus $0.59.
Summary of Insider Activity:
Insiders traded RF stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 486,974 while 227,353 shares were sold.