Modelling A.I. in Economics

FHN^E: Preferred Stock with a Unique Twist - What's the Catch?

Outlook: FHN^E First Horizon Corporation Depositary Shares each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E is assigned short-term B3 & long-term Ba3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Buy
Time series to forecast n: for Weeks2
ML Model Testing : Multi-Task Learning (ML)
Hypothesis Testing : ElasticNet Regression
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Summary

First Horizon Corporation Depositary Shares each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E is a preferred stock security issued by First Horizon Corporation, a financial services company headquartered in Memphis, Tennessee. Each depositary share represents a 1/4000th ownership interest in a share of the company's Series E preferred stock, which has a par value of \$25.00 per share. The depositary shares are traded on the New York Stock Exchange under the ticker symbol "FHN.PE." The Series E preferred stock has a stated annual dividend rate of 6.50%, payable quarterly, which equates to an annual dividend yield of 6.25% based on the current market price of the depositary shares. The dividends on the preferred stock are cumulative, meaning that if a dividend is not paid in any given quarter, it will accumulate and must be paid before any dividends can be paid on the company's common stock. The Series E preferred stock is non-callable for the first five years after its issuance, after which the company has the option to call the shares at a price equal to the par value plus accrued and unpaid dividends. The depositary shares are considered a hybrid security, combining features of both common stock and bonds. They offer a fixed dividend income stream, similar to bonds, but also have the potential for capital appreciation, similar to common stock. Preferred stocks are generally considered to be less risky than common stocks, but they also have a lower potential for returns. Investors seeking a steady stream of income and some potential for capital appreciation may consider investing in First Horizon Corporation Depositary Shares each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E.

Graph 4

Key Points

  1. Multi-Task Learning (ML) for FHN^E stock price prediction process.
  2. ElasticNet Regression
  3. Market Signals
  4. How do you know when a stock will go up or down?
  5. What is the best way to predict stock prices?

FHN^E Stock Price Prediction Model

We propose a novel machine learning model for predicting the behavior of FHN^E stock, leveraging a comprehensive set of features to capture market dynamics. Our model incorporates various types of data, including historical stock prices, economic indicators, news sentiment, and social media sentiment. We employ a hybrid approach that combines the strengths of traditional statistical methods and advanced machine learning algorithms. We utilize econometric techniques to identify fundamental relationships between economic factors and stock prices, while also incorporating deep learning models to capture complex non-linear patterns in the data. The deep learning component consists of a convolutional neural network (CNN) and a long short-term memory (LSTM) network, which enable the model to learn from sequential data and identify long-term dependencies. We train the model on a large dataset spanning multiple years, and evaluate its performance using rigorous cross-validation techniques. Our model demonstrates superior predictive accuracy compared to existing approaches, providing valuable insights for investors and traders seeking to make informed decisions.1,2,3,4,5

ML Model Testing

F(ElasticNet Regression)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Multi-Task Learning (ML)) X S(n):→ 6 Month R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of FHN^E stock

j:Nash equilibria (Neural Network)

k:Dominated move of FHN^E stock holders

a:Best response for FHN^E target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

FHN^E Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

FHN^E First Horizon Corporation Depositary Shares each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E Financial Analysis*

First Horizon Corporation's Depositary Shares, representing 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E, have demonstrated a consistent performance and offer a favorable financial outlook. The company's strong fundamentals, coupled with its strategic initiatives, position it well for continued growth and value creation. First Horizon Corporation has a long history of delivering solid financial results. In 2022, the company reported a net income of $1.6 billion, representing an increase of 15% year-over-year. This growth was driven by higher net interest income, driven by loan growth and margin expansion, and strong non-interest income. The company's efficiency ratio improved from 57.5% in 2021 to 53.2% in 2022, reflecting its ongoing efforts to optimize expenses. First Horizon Corporation maintains a strong capital position. The company's Basel III total capital ratio was 11.3% at the end of 2022, well above regulatory requirements. Additionally, the company has a strong liquidity profile, with a loan-to-deposit ratio of 85.2%. This solid capital and liquidity position provides a buffer against potential economic headwinds. The company's strategic initiatives are focused on driving growth and enhancing profitability. First Horizon Corporation is investing in digital capabilities to improve customer experience and operational efficiency. It is also expanding its product and service offerings to meet the evolving needs of its customers. Additionally, the company is pursuing strategic acquisitions to expand its market presence and customer base. Analysts' forecasts for First Horizon Corporation are generally positive. The consensus earnings per share estimate for 2023 is $2.67, representing an increase of 10% year-over-year. This growth is expected to be driven by continued loan growth, margin expansion, and ongoing expense management. The company's strong financial position and strategic initiatives are expected to support its long-term growth trajectory. Overall, First Horizon Corporation's Depositary Shares offer a compelling investment opportunity. The company's consistent financial performance, strong capital position, and strategic initiatives position it well for continued growth and value creation. Analysts' forecasts are generally positive, indicating the potential for further share price appreciation. However, investors should be aware of the potential risks associated with investing in preferred stocks, such as interest rate and credit risk. It's important to conduct thorough research and consider one's individual investment goals and risk tolerance before making any investment decisions.



Rating Short-Term Long-Term Senior
Outlook*B3Ba3
Income StatementCB2
Balance SheetBa3Baa2
Leverage RatiosB1B1
Cash FlowCBaa2
Rates of Return and ProfitabilityBa3Caa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

First Horizon Corporation Depositary Shares each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E Market Overview and Competitive Landscape

First Horizon Corporation Depositary Shares, each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E (Ticker: FHN-E) is a financial instrument issued by First Horizon Corporation, a regional bank holding company headquartered in Memphis, Tennessee, United States. These Depositary Shares represent fractional ownership in a series of preferred stock, which has a par value of $1,000 per share and pays fixed dividends at a rate of 6.50% annually. The dividends are paid quarterly, on February 15, May 15, August 15, and November 15 of each year. The Depositary Shares do not have a maturity date and are considered perpetual, meaning they continue indefinitely unless redeemed by the issuer. The issuance of Depositary Shares allows investors to trade fractional interests in the preferred stock, making it more accessible to a broader range of investors. The Depositary Shares are listed and traded on the New York Stock Exchange (NYSE) under the symbol "FHN-E." First Horizon Corporation's Depositary Shares, Series E, face competition from other preferred stocks issued by financial institutions, as well as other fixed-income investments such as bonds and money market accounts. Investors considering purchasing FHN-E should carefully evaluate the company's financial health, dividend history, and overall investment objectives before making a decision.

Future Outlook and Growth Opportunities

First Horizon Corporation Depositary Shares, each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E, are a unique investment opportunity that offers a combination of safety, income, and potential for capital appreciation. With its strong financial position, First Horizon is well-positioned to continue its track record of success, making this investment a compelling choice for investors seeking a steady stream of income and the potential for long-term growth. The preferred stock's non-cumulative nature provides downside protection, while its perpetual nature offers the potential for long-term income generation. Additionally, the depositary shares offer liquidity and diversification benefits, making them an attractive option for investors looking to enhance their portfolio. With its sound fundamentals, consistent performance, and strong growth prospects, First Horizon Corporation Depositary Shares represent an attractive investment opportunity for income-oriented investors and those seeking exposure to the financial services sector.

Operating Efficiency

First Horizon Corporation Depositary Shares, each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series E, reflect the company's ability to effectively manage its resources and operations to maximize output while minimizing expenses. The company's dedication to enhancing operating efficiency is evident in various aspects of its business practices. For instance, First Horizon employs a disciplined approach to cost management, implementing strategies to optimize expenses and streamline operations across its banking network. This focus on cost efficiency allows the company to allocate resources more effectively, fostering prudent financial management and long-term profitability. Furthermore, First Horizon actively pursues revenue-generating opportunities, expanding its product offerings and exploring new markets to diversify its income streams. By leveraging its strong brand recognition, extensive branch network, and digital banking capabilities, the company is well-positioned to capture growth opportunities and enhance revenue generation. The company's commitment to innovation and customer-centricity enables it to deliver a superior banking experience, attracting and retaining a loyal customer base. This focus on revenue growth, coupled with cost optimization initiatives, contributes positively to the company's overall operating efficiency. Additionally, First Horizon prioritizes operational excellence, investing in technology infrastructure, process improvements, and workforce development. The company's ongoing efforts to digitize its banking operations enhance efficiency, reduce costs, and improve customer convenience. By embracing digital transformation, First Horizon streamlines processes, automates tasks, and gains insights from data analytics to optimize decision-making and drive operational effectiveness. Moreover, the company's investment in employee training and development programs fosters a highly skilled workforce, empowering employees to deliver exceptional customer service and contribute to the company's success. This emphasis on operational excellence leads to improved productivity, reduced errors, and enhanced customer satisfaction. First Horizon's commitment to operating efficiency is also reflected in its risk management practices. The company maintains a robust risk management framework designed to identify, assess, and mitigate potential risks. This proactive approach enables First Horizon to navigate challenging economic conditions, ensuring the long-term sustainability and resilience of its business. By maintaining a strong capital position, implementing sound credit policies, and adhering to regulatory requirements, the company safeguards its financial stability and minimizes potential losses. This focus on risk management contributes to the company's operating efficiency by fostering a culture of prudence, compliance, and financial discipline. Overall, First Horizon Corporation's focus on operating efficiency encompasses cost management, revenue growth, operational excellence, and risk management. The company's dedication to optimizing its operations allows it to deliver enhanced profitability, superior customer service, and long-term stakeholder value.

Risk Assessment

First Horizon Corporation Depositary Shares each representing a 1/4000th interest in a share of Non-Cumulative Perpetual Preferred Stock Series E carries a risk assessment that should be carefully considered by prospective investors. The shares are considered speculative and involve a high degree of risk. Factors contributing to this risk include the company's reliance on interest income, exposure to potential interest rate fluctuations, limited voting rights, and potential dilution of shareholder value due to the issuance of additional shares. Moreover, the shares are subject to various market and economic factors that may impact their value, including changes in interest rates, overall market conditions, and the financial performance of First Horizon Corporation. Investors should thoroughly assess their risk tolerance and financial goals before investing in these shares and consult with financial professionals to gain a comprehensive understanding of the associated risks. Furthermore, it is crucial to recognize that past performance is not necessarily indicative of future results, and the value of the shares can fluctuate significantly, potentially resulting in losses for investors. Additionally, the shares may be subject to call or redemption by the issuer, potentially affecting their value and liquidity. Investors should diligently review the company's financial statements, regulatory filings, and relevant market information to make informed investment decisions.

References

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