Trade-Ideas LLC identified First Horizon National ( FHN) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified First Horizon National as such a stock due to the following factors:

  • FHN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.8 million.
  • FHN has traded 300,699 shares today.
  • FHN is trading at 3.71 times the normal volume for the stock at this time of day.
  • FHN is trading at a new low 4.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on FHN:

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association that provides various financial services in the United States and internationally. The stock currently has a dividend yield of 1.7%. FHN has a PE ratio of 53. Currently there are 3 analysts that rate First Horizon National a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for First Horizon National has been 2.0 million shares per day over the past 30 days. First Horizon has a market cap of $3.3 billion and is part of the financial sector and banking industry. The stock has a beta of 0.93 and a short float of 6.4% with 5.73 days to cover. Shares are up 4.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates First Horizon National as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • FHN's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 4.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for FIRST HORIZON NATIONAL CORP is currently very high, coming in at 92.94%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.42% trails the industry average.
  • Net operating cash flow has significantly increased by 382.58% to $252.68 million when compared to the same quarter last year. Despite an increase in cash flow of 382.58%, FIRST HORIZON NATIONAL CORP is still growing at a significantly lower rate than the industry average of 2759.78%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIRST HORIZON NATIONAL CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

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