Keefe, Bruyette & Woods took its Regions Financial [RF] rating to the equivalent of Outperform from Market Perform, and the price target to $18.5 from $18.5, in a research note dated 2021-01-08. That figure represents around a 4.76% premium from where the company’s shares closed on Thursday. Other analysts also revised their coverage, with Wedbush’s analysts downgrading the shares from “an Outperform” rating to “a Neutral” rating in a research note to investors issued in early January. Meanwhile, Evercore ISI had raised its rating on RF to “an Outperform” from the earlier “an In-line”, in a research note produced for clients December 07, 2020. In addition, there was an upgrade from Morgan Stanley on November 30, 2020. The rater changed RF from “an Equal-weight” to “an Overweight”.
Is Regions Financial Corporation [NYSE:RF] a Good Buy Right Now?
It should be noted that RF technical indicators for short, intermediate as well as long term progress have placed an overall average of 100% as Buy. The average signal changed from 100% Buy in the last week and compares with 100% Buy in the past month. Data from Regions Financial Corporation’s Trend Spotter indicated that the signals were Strongest. The stock current average is 8.11 million shares in the past 20 days and the short term average signal indicates a 100% Buy. In the last 50 days, the average trading volume was 8.88 million shares while the medium term average advocated for 100% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 8.31 million shares.
RF Price Performance
On Wall Street, Regions Financial Corporation [NYSE:RF] finished Thursday’s session up 2.38% at $17.66. The stock went up to $17.93 at the same session while its lowest single day price was $17.44. In the last five days, it saw a rise of about 10.86%, Regions Financial Corporation shares gained by almost 9.55% since the beginning of the year. However, the share price has dropped to as low as 0.97% below its one year high. On 01/07/21, the company shares recorded $17.93, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $15.72. The company’s shares have inclined by 7.36% in the past year. The 50-day SMA achieved is $15.28 while the 200-day SMA is $12.12. Volume dropped to 9.33 million from 13.45 million in the previous session.
Regions Financial Corporation [RF] Valuation Measures
Notably, Regions Financial Corporation [RF] stock cannot be classified as a good candidate in the listing of underestimated low-priced Banks – Regional companies to purchase soonest possible with the prevailing 12-month PE ratio of 22.16. The measure means the stock is exchanging at a premium as compared to the 11.84x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 3.89 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 2.44 which means RF serve an unattractive investment opportunity compared to its competitors.
RF Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 17.42 level, and in case of violation of this particular level, it will cause more drop to 17.19 level. On the upper level, 18.17 is still the key resistance. The stock may increase to the subsequent resistance at 17.91. The Relative Strength Index (RSI) pinned on the 14-day chart is 73.29, implying a overbought technical stance while the MACD stands at 1.01, meaning price will increase in the next trading period. Percent R indicator moved to 9.52%, implying bullish price movement. Stochastic %K at 89.04% suggest selling the stock.
What is the short interest in Regions Financial Corporation?
Short interest in the Regions Financial Corporation stock has surged, increasing by 3.67 million shares to total 21.15 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 24.82 million, data from Yahoo Finance shows. The decrease of -17.35% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 2.53% of the overall float for the stock.
Regions Financial Corporation’s Biggest Shareholders: Who Owns Regions Financial Corporation [RF]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 111,622,706 shares or roughly 11.62% of the outstanding RF shares. This means their shares have reduced by -4,507,247 from the 111,622,706 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, BlackRock Fund Advisors updated stake is worth $961,963,121. Details in the latest 13F filings reveal that SSgA Funds Management, Inc. acquired their 1.01% stake valued at $821,467,211 while Capital Research & Management Co added theirs at $675,461,426. During the last quarter, SSgA Funds Management, Inc. raised 536,793 of its shares in Regions Financial Corporation while Capital Research & Management Co bought 5,328,939 shares. The LSV Asset Management’s holdings currently number 21,437,225 shares at $378581393.5. According to the firm’s last 13F report, JPMorgan Investment Management, I shares in the company at filing stood at 19,437,814 shares, roughly $296,815,420.
RF Earnings Forecast For The Current Quarter
Regions Financial Corporation [RF] is expected to report strong earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $1.55B and an earnings per share of $0.41 for Dec 2020. Looking further ahead, the company is expected to report revenue of $1.52B at an EPS of $0.38 for Mar 2021. The estimates represent upside of -1.30% and 76.13% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
RF Earnings Estimates For The Current Year
For the financial year, Regions Financial Corporation [NYSE:RF] is expected to bring in revenue of $6.15B. The returns are nearly $290.0 million higher than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 0.82, lower than that of FY19 by -$0.7. Estimates put this year’s earnings growth at -46.10%, 85.40% for the next, and at an annual -21.60% over the next 5-year period. As for sales, forecasts are for an increase of 4.90% in the current fiscal year and a further -1.30% over the following year.