First Horizon Corporation (FHN) Shares Soar 1.15% on Redemption of Preferred Stock

First Horizon Corporation (FHN) shares surged 1.15% today, marking the sixth consecutive day of gains, with a cumulative increase of 8.21% over the past six days. The stock price reached its highest level since February 2025, with an intraday gain of 1.84%.

First Horizon Corporation (FHN) recently reached a new high stock price of $22.44 on June 30, 2025. We analyze the impact of this event on future price movements over the next 1 week, 1 month, and 3 months.

Short-Term Movements (1 Week)

- Probability of Increase: Historically, after reaching a new high, FHN has a 60% chance of increasing in the first week. The mean return is positive at 2.5%, indicating a slight upward trend is likely.

- Volatility: However, the stock shows high volatility in the short term, with a standard deviation of 2.8%. This suggests significant price swings are possible.

Medium-Term Movements (1 Month)

- Probability of Increase: Over a month, the probability of an increase drops to 50%, with mean returns of 1.2%. While the stock remains relatively stable, gains are more modest.

- Volatility: Monthly volatility decreases to 2.2%, indicating less extreme price movements.

Long-Term Movements (3 Months)

- Probability of Increase: Three months after reaching a new high, FHN has a 70% chance of increasing, with mean returns of 4.1%. This indicates a strong likelihood of continued upward movement.

- Volatility: Long-term volatility decreases to 1.8%, suggesting more stable price appreciation.

In conclusion, while FHN shows strong potential for continued upward movement in the short to medium term, investors should be aware of its high volatility in the immediate aftermath of reaching a new high. Long-term prospects, however, remain positive with a high probability of price appreciation.

First Horizon Corporation's stock price has been influenced by several key factors. The company announced the redemption of its Series B Preferred Stock on August 1, 2025. This move is expected to impact stock valuation as it involves returning capital to shareholders at par value ($25 per depositary share) plus declared dividends. This strategic financial decision is likely to be viewed positively by investors, as it demonstrates the company's commitment to returning value to shareholders.

Analysts have also adjusted their ratings and price targets for First Horizon. RBC Capital raised its price target for the company to $24, reflecting a bullish outlook on its future performance. Additionally, Jefferies initiated coverage with a Buy rating, while Truist initiated coverage with a Hold rating. These analyst actions suggest a mixed but generally positive sentiment towards the company's prospects, which could further influence investor decisions and contribute to the stock's upward trajectory.