First Horizon (FHN) Soars to All-Time High, Then Gives up All Gains

We recently published 10 Stocks Crash Harder than Wall Street. First Horizon Corp. (NYSE:FHN) is one of the worst performers on Wednesday.

First Horizon soared to a new all-time high on Wednesday, but later fell in the red, as investors took path from an investment company’s price target downgrade for its stock.

In intra-day trading, First Horizon Corp. (NYSE:FHN) climbed to its highest 52-week price of $23.7, then gave up all gains to end the day down by 9.43 percent at $20.85 apiece.

The drop followed Jefferies’ price target downgrade for its stock to $25 from $28 previously, despite maintaining a “buy” recommendation.

According to the analyst, the revision reflected First Horizon Corp.’s (NYSE:FHN) hints of acquiring companies, a strategic shift which was said to have created a “near-term overhang,” and contradicted market expectations that it could be an acquisition target.

On the same day, First Horizon Corp. (NYSE:FHN) announced the results of its third quarter earnings performance, raking in $254 million in net income attributable to shareholders, or a 19 percent increase from the $213 million reported in the same period last year. Net interest income grew by 7.5 percent to $674 million from $627 million year-on-year, on the back of average balance growth in higher-yielding portfolios and cash basis income, as well as increased accretion related to the Main Street Lending Program.

While we acknowledge the potential of FHN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.