Flagstar Financial Announces Internal Reorganization Plan to Streamline Corporate Structure.

Flagstar Financial has announced an internal reorganization plan to merge with its wholly-owned subsidiary, Flagstar Bank, N.A. The company has secured support from major investors holding 35.05% of its common stock. Analysts rate the stock a Hold with a $12.00 price target.

Flagstar Financial, Inc. (FLG) has announced a significant internal reorganization plan to streamline its corporate structure by merging with its wholly-owned subsidiary, Flagstar Bank, N.A. [1]. The company entered into voting agreements with major investors holding 35.05% of its common stock, securing their support for the merger and related proposals at a shareholder meeting scheduled for October 15, 2025. Additionally, the merger agreement was amended to clarify the treatment of outstanding warrants for Series D Non-Voting Common Equivalent Preferred Stock.

The most recent analyst rating on FLG stock is a Hold with a $12.00 price target [1]. Spark, TipRanks’ AI Analyst, rates FLG as Neutral, noting significant financial challenges, including persistent losses and liquidity issues [1]. Despite some positive technical momentum, the company's valuation and earnings call suggest ongoing risks. However, the cautiously optimistic outlook from the earnings call provides a balanced perspective.

Flagstar Financial operates primarily in the banking services sector through Flagstar Bank, N.A. [1]. The company has seen a 26.1% decrease in revenue compared to the same quarter last year, with earnings per share of ($0.14) for the quarter, missing the consensus estimate of ($0.12) [2]. Analysts predict that FLG will post -0.31 EPS for the current fiscal year [2].

Institutional investors have shown interest in FLG, with several funds acquiring new positions in the first quarter. LPL Financial LLC, HB Wealth Management LLC, Princeton Capital Management LLC, Inspire Advisors LLC, AE Wealth Management LLC, and Pacer Advisors Inc. all bought stakes in the company [2]. Institutional investors and hedge funds own 67.88% of the company's stock [2].

The company also recently announced a quarterly dividend, which will be paid on September 17th, with an annualized dividend of $0.04 and a yield of 0.3% [2]. Flagstar Financial's dividend payout ratio is -2.42% [2].

Analysts have mixed views on FLG. Jefferies Financial Group and Citigroup have a "buy" rating with target prices of $15.00 and $15.50, respectively [2]. Stephens has an "equal weight" rating with a $12.50 target price, while Truist Financial and JPMorgan Chase & Co. have a "hold" rating with target prices of $12.00 [2]. The consensus rating is "Hold" with a consensus price target of $13.22 [2].

Flagstar Financial's market capitalization is $4.97 billion, with a debt-to-equity ratio of 1.74, a quick ratio of 1.02, and a current ratio of 1.02 [2]. The stock's fifty-day and two-hundred-day moving averages are $11.42 and $11.63, respectively [2].

References:
[1] https://www.tipranks.com/news/company-announcements/flagstar-financial-announces-internal-reorganization-plan
[2] https://www.marketbeat.com/instant-alerts/filing-lpl-financial-llc-takes-position-in-flagstar-financial-inc-flg-2025-08-19/