First Horizon to repurchase $650 million in shares

MEMPHIS, Tenn. – First Horizon Corporation (NYSE: NYSE:), a prominent regional financial services company, has announced that its board of directors approved a significant stock repurchase program. The company is authorized to buy back up to $650 million of its common stock, a move that reflects confidence in its financial stability and commitment to delivering shareholder value.

In addition to the share repurchase, First Horizon has declared a quarterly dividend of $0.15 per share on its common stock, payable on April 1, 2024, to shareholders of record as of March 15, 2024. Bryan Jordan, Chairman, President, and CEO of First Horizon, emphasized the company’s robust capital position and its ability to pursue strategic growth opportunities while maintaining a focus on safety and soundness.

The repurchase of common shares may occur in the open market or through privately negotiated transactions, subject to market conditions, regulatory considerations, and other factors. This authorization is set to expire on January 31, 2025.

Furthermore, the board declared cash dividends on various series of preferred stock, with payment dates ranging from April 10, 2024, to May 1, 2024, for shareholders on record in late March to mid-April 2024.

First Horizon, with $81.7 billion in assets as of the end of 2023, operates First Horizon Bank and provides a range of financial services across the southern United States. The company has received recognition for its workplace environment and reputation within the banking industry.

InvestingPro Insights

First Horizon Corporation’s (NYSE: FHN) recent announcement of a significant stock repurchase program and the declaration of a quarterly dividend are reflective of the company’s solid financial footing. According to real-time data from InvestingPro, First Horizon boasts a market capitalization of $7.96 billion, underscoring its substantial presence in the financial sector. Notably, the company is trading at a price-to-earnings (P/E) ratio of 9.06, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 7.83, indicating its shares may be reasonably valued relative to earnings.

InvestingPro Tips highlight that six analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company’s financial prospects. Additionally, First Horizon has maintained dividend payments for 13 consecutive years, demonstrating a commitment to shareholder returns. The company has also experienced a strong return over the last three months, with a 36.31% price total return, which may interest investors looking for robust performance in the short term.

For those seeking to delve deeper into First Horizon’s financials and future outlook, InvestingPro offers additional expert tips. Currently, subscribers can take advantage of a special New Year sale on InvestingPro subscriptions, with discounts of up to 50%. Moreover, using the coupon code SFY24 will secure an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. InvestingPro’s platform provides a comprehensive set of tools and insights, including a fair value estimate of $17.09 for FHN, which exceeds the current price, hinting at potential undervaluation.

With a focus on strategic growth and shareholder value, First Horizon’s recent financial decisions could be a precursor to future success, as reflected in the additional 6 InvestingPro Tips available on their platform.

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