• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

First Horizon National Is a Bit Bearish for My Tastes

The bank holding company's charts indicate now is not the time to take a long position in the stock.
By BRUCE KAMICH
Jul 23, 2020 | 08:08 AM EDT
Stocks quotes in this article: FHN

In his first Executive Decision segment of "Mad Money" Wednesday, host Jim Cramer spoke with Bryan Jordan, president and CEO of First Horizon National Corp. (FHN) , a bank holding company that recently reported a second-quarter revenue beat. 

Jordan said he's excited about First Horizon's recent acquisition of IberiaBank. He said the combined company has a lot of cost savings and leverage potential and ultimately will create greater shareholder value.

When asked about First Horizon's business, Jordan admitted that loan volume has been fairly benign, but he noted that the company also has a few counter-cyclical businesses, including fixed-income securities trading and mortgage services, both of which help maintain revenue even during a slowdown. He remained optimistic for the rest of 2020.

Cramer said he believes First Horizon is cheap at current levels, especially with its bountiful dividend yield of 6.3%. Let's check out the charts to see if this is a good place on the charts to consider a long position.

In this daily bar chart of FHN, below, we can see that prices have not yet retraced their decline from January to March. Prices have come off their low, but we can see that prices are now trading around the declining 50-moving average line and below the declining 200-day moving average line. From the middle of March to the middle of May we see prices just chopping sideways before a rally takes hold in late May.

The daily On-Balance-Volume (OBV) line has moved down to a new low in July, telling us that sellers of FHN have been more aggressive the entire year. This does not bode well for a recovery in the stock price. The Moving Average Convergence Divergence (MACD) oscillator is back below the zero line in sell territory.

In this weekly bar chart of FHN, below, we can see that prices have been in a downtrend since early 2017. Trading volume has been heavier in recent months, suggesting that we may have seen a shift from weak hands to stronger hands, but it is a little early to tell. Prices are below the declining 40-week moving average line and the OBV line has not risen strongly. The MACD oscillator shows a cover shorts buy signal but is a long way from crossing back above the zero line.

In this Point and Figure chart of FHN, below, we can see a potential downside price target in the $6.50 area.

Bottom line strategy: With bearish indicators and a downside price target on the Point and Figure chart (above), we do not recommend taking a long position in FHN at this time.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Banking | Financial Services | Mad Money | Real Money

More from Stocks

A Rush to Rotate Into Short-Squeeze Plays Is Roiling the Market

James "Rev Shark" DePorre
Jan 28, 2021 6:27 AM EST

The market is struggling with instability as a massive, short-squeeze movement continues. 'Good' stocks are being dumped by funds to pay for short-selling losses.

If You Think the Selling Started Yesterday, You Have a Short Memory

Helene Meisler
Jan 28, 2021 6:00 AM EST

A lot of what we saw on Wednesday has been in the works for a while now.

Emotions Run High as Indexes Slip

James "Rev Shark" DePorre
Jan 27, 2021 4:44 PM EST

I've raised a bit of cash, but it's still unclear what will emerge from here.

3 Important Questions the Fed Answered Wednesday

Tom Graff
Jan 27, 2021 4:30 PM EST

Powell was asked a number of questions about asset bubbles and financial stability risks during his press conference.

'Mortal Kombat' on the Market

Peter Tchir
Jan 27, 2021 3:54 PM EST

Let's pick apart the wild action in individual stocks -- especially GameStop -- and see what to expect going forward.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:48 AM EST STEPHEN GUILFOYLE

    Cashing in Some More Chips at Stocks Under $10

    We're trimming a position for a big gain today.
  • 08:34 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/27/2021

    The "correction" can be coming sooner than we thou...
  • 09:35 AM EST CHRIS VERSACE

    Another Big Winner for Stocks Under $10

    We're ringing the register Tuesday morning.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login