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  • Surge In First Horizon (FHN) Propelled By Analyst Upgrade

    Surge In First Horizon (FHN) Propelled By Analyst Upgrade

    On Wednesday, First Horizon Corporation (NYSE: FHN) showed a significant 6.18% surge on US stock charts, concluding the trading day with a closing value of $15.12. First Horizon (FHN) shares had a spike in value due to research company USB’s increased rating, which changed from “Neutral” to “Buy.” In parallel, USB boosted its target price for FHN shares from $15.50 to $16, reflecting a strong outlook for the company’s future development.

    The news of First Horizon’s board of directors had approved a share repurchase program, allowing for the acquisition of up to $650 million worth of the company’s common shares, added to the upward trend. Offering options to take advantage of strategic development opportunities is one way that First Horizon aims to increase financial flexibility while maintaining its commitment to safety, soundness, and paying shareholders back.

    The board’s decision to establish a quarterly dividend of $0.15 per share on common stock, which is scheduled to be paid on April 1, 2024, to shareholders registered as of March 15, 2024, demonstrates First Horizon’s dedication to giving its investors their money back. In addition to the buyback scheme, there is this announcement.

    With a deadline set for January 31, 2025, the authority to repurchase common shares provides First Horizon with opportunities to engage in open market transactions or private discussions, fostering the company’s ability to adapt to evolving market conditions and generate shareholder profits.

    Additionally, the business declared cash dividends on a range of preferred stocks, such as Series C, D, E, and F, giving investors the chance to anticipate semi-annual and quarterly payouts and bolstering First Horizon’s overall financial stability.

    In an effort to increase shareholder value, First Horizon Bank has announced a quarterly cash distribution of $16.27219 per share for its Class A Non-Cumulative Perpetual Preferred Stock. This dividend illustrates First Horizon’s commitment to giving returns to its shareholders; it is payable on April 10, 2024 to shareholders who were registered as of March 26, 2024.

  • First Horizon Corporation (FHN) stock gained in the current market; here is why?

    First Horizon Corporation (FHN) gained in the current market after announcing that TD Bank has acquired First Horizon. FHN values at $23.74, losing more than 30.08% compared to yesterday’s closing price. The stock closed at $18.25 at the end of the last trading session. The stock volume traded in the last trading session was around 5.82 million shares. The current market cap of the company is around $9.87 billion.

    FHN acquired by TD

    First Horizon (FHN) and TD Bank (TD) announced that they both have come to an agreement that TD will acquire First Horizon. The transaction value is $13.4 billion or $25 per common stock paid all in cash to First Horizon. TD Bank acquiring First Horizon was the similarity among its culture and risk-management framework, but the deal complements the TD Banks’ long-term goal of expansion.

    After the deal TD’s US franchise has over $614 billion in assets and a network of 1,560 outlets servicing over 10.7 million US consumers across 22 states; globally, TD Bank Group has roughly C$1,841 billion in assets and over 27.5 million clients served by over 2,600 locations.

    FHN Transaction Details

    The company expects an unadjusted synergy gain of over 10% upon closure when the deal is penned. TD Banks expects that, on average, the deal should provide a 10% return on capital in 2023. First Horizon’s fully-synergized profits for 2023 are 9.8 times the acquisition price, and its anticipated tangible book value at closing is 2.1 times the purchase price.

    TD Bank expects to close the deal in the first half of fiscal 2023, but that is subject to market conditions. The factors affecting the deal could be shareholders of First Horizon, Canadian or US regulatory authorities.

    FHN CEO’s remarks

    First Horizon is a solid bank, according to TD President and CEO Bharat Masrani. As a consequence, TD will have direct access to the attractive US bordering markets and significant future growth prospects across the Southeast. They aspire to build on their success and create outstanding client experiences in every area they serve.

    Conclusion

    TD Bank acquires First Horizon in the hope of creating a customer-centric business model in order to gain future expansion. First Horizon’s investments in local communities will be further developed by TD.