Regions Financial Holds Consensus Hold Rating as Analysts Eye Earnings
Regions Financial holds a consensus Hold rating from sell-side brokerages following its third-quarter earnings. Analysts maintain an average one-year target of $31.00.
Sell-side brokerages currently assign a consensus rating of Hold to Regions Financial Corporation, MarketBeat reported. Across twenty covering analysts, ten recommend holding the stock, seven suggest buying, and three recommend selling. The average one-year price target stands at $31.00. Individual updates in October included Royal Bank of Canada lowering its price target from $34.00 to $32.00 with an outperform rating, and Capital One Financial setting a price objective of $33.00.
The updated consensus follows the lender's third-quarter financial results. Reported figures showed net income of US$631 million and diluted earnings per share of US$0.71, with adjusted earnings arriving at $0.73 per share to top the consensus forecast of $0.67. Quarterly revenue reached $1.99 billion, reflecting a 3.0% increase year over year, while separate reported revenue excluding extra items was US$1,905 million. Third-quarter net interest income came in at US$1,298 million as net loan charge-offs declined to US$72 million.
Capital management remained active during the quarter. Regions Financial repurchased US$95 million of shares alongside common and preferred payouts. The company declared a regular quarterly dividend of $0.30 per share, which is set for payment on Monday, January 4th, for shareholders on record as of Tuesday, December 1st. The payout translates to an annualized dividend of $1.20 per share, delivering a yield of 4.2% based on a cited payout ratio of 47.06%.
Institutional ownership in the bank stands at 79.39%, supported by recent portfolio updates. During the second quarter, State Street Corp raised its position by 6.2% to 50,667,092 shares valued at $1,543,092,000. New second-quarter positions were also established by Nykredit A S and Bank of America Corp DE, investing $236,756,000 and $219,068,000 respectively. Meanwhile, First Trust Advisors LP grew its stake by 75.7% in the first quarter to 13,358,969 shares.
Ahead of the quarterly report, the Birmingham-based bank finalized transitions within its corporate finance structure. Allen Mayer took over as Treasurer on September 28, succeeding Deron Smithy, who is retiring at the end of 2026 after 18 years at the firm. Craig Harrison also joined the company on September 28 as head of Corporate Finance, taking charge of financial planning, strategic analytics, and finance systems functions.