Exploring First Horizon Corporation (FHN) Investor Profile: Who’s Buying and Why?

You're looking at First Horizon Corporation (FHN) and asking the right question: with regional bank stocks still navigating a complex rate environment, who is actually buying, and what's their conviction? The simple answer is that institutional money is placing a huge bet, holding about 80.28% of the stock, and they're seeing a solid, undervalued regional player that just delivered a major beat. Consider this: for the third quarter of 2025, First Horizon reported an adjusted earnings per share (EPS) of $0.51, significantly topping analyst expectations, and total assets stood strong at $83.2 billion as of September 30, 2025. This performance, plus the recent announcement of a substantial $1.20 billion stock repurchase program, signals management's belief the stock is defintely cheap, so are you missing the signal that giants like BlackRock and The Vanguard Group are quietly accumulating shares?

Who Invests in First Horizon Corporation (FHN) and Why?

If you are looking at First Horizon Corporation, you are defintely not alone. The investor base is dominated by large institutions, but the core investment thesis is a blend of classic value, income, and a strategic bet on the regional banking sector's future. It is a story of a solid regional bank with a clear path to higher returns.

The institutional backing is massive, which means the stock price is highly sensitive to the trading actions of these giants. As of late 2025, institutional investors hold an overwhelming 86.37% of the company's stock. Retail investors (the general public) account for about 10.30% of the ownership, with insiders holding the remaining 3.34%.

Key Investor Types and Their Footprint

When you look at the shareholder registry, you see a clear picture of who is driving the trade volume. The sheer size of the largest holders indicates a preference for passive and long-term capital, but the presence of major hedge funds adds a layer of event-driven volatility.

The largest shareholders are the titans of the asset management world, primarily holding shares for their index funds and broad-market portfolios. This is a classic sign of a well-established, liquid stock.

• BlackRock, Inc.: The largest holder with 59,688,345 shares, representing 12.12% of the company.
• Vanguard Group Inc.: Holds 50,487,836 shares, or 10.25%.
• Bank of New York Mellon Corp: Owns 32,441,190 shares.

But it is not all passive money. The fact that Citadel Advisors LLC, a major hedge fund, is also a top-ten shareholder suggests a portion of the float is actively managed for shorter-term gains or event-driven strategies (like mergers and acquisitions, or M&A).

Investment Motivations: Value, Income, and Growth

The motivation for holding First Horizon Corporation stock boils down to three core pillars: a compelling valuation, a reliable dividend, and a clear path to profitability improvement.

Value and Undervaluation: Many analysts see the stock as undervalued. For instance, some valuation models suggest the stock is trading at a significant discount, with one excess returns analysis indicating an undervaluation of up to 43.9%. While the Price-to-Tangible Book Value (P/TBV) ratio is currently around 1.18, value investors are attracted to the potential upside as the company executes its strategy and closes this valuation gap.

Income and Capital Return: For income-focused investors, the dividend is a key draw. The Trailing Annual Dividend Yield sits between 2.74% and 2.89% as of November 2025, with an Annual Dividend of $0.60 per share. Plus, the company is actively returning capital through buybacks, having recently repurchased approximately 8.6 million shares for $190 million, with over $300 million in remaining authorization.

Growth and Profitability Targets: The management's clear focus on achieving a sustainable 15%+ adjusted Return on Tangible Common Equity (ROTCE) is a powerful signal to growth-oriented investors. The bank's regional focus is a major advantage here; its footprint includes 10 of the top 25 fastest-growing metro areas by GDP in the U.S.. This geographic positioning supports the expected 2025 EPS of around $1.70.

You can read more about the company's long-term goals and strategy here: Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

Typical Investment Strategies in Play

The ownership mix translates into a few distinct, competing investment strategies that influence the stock's daily movements.

• Long-Term Value Holding: This is the dominant strategy for passive institutional holders like BlackRock and Vanguard. They are buying for the long haul, betting on the bank's disciplined execution, strong capital position (CET1 ratio around 11%), and the sustained dividend income. They are comfortable with the bank's diversified business model, which includes FHN Financial, as a buffer against economic cycles.
• Event-Driven/M&A Speculation: This is where the hedge funds and some active managers come in. First Horizon Corporation remains a highly attractive 'takeout candidate' in the regional banking sector. The M&A optionality keeps the stock's valuation floor higher than it might otherwise be, as investors are betting on a potential sale price in the range of $24-$25 per share, or about 1.8x tangible book value. This is a classic short-term, catalyst-driven trade.
• Income and Yield Investing: Individual and mutual fund investors often hold FHN purely for its yield and capital return program. The low dividend payout ratio (around 33.15%) suggests the dividend is safe, which is crucial for retired or income-focused portfolios. This group prioritizes the quarterly $0.15 per share payout.

Here is the quick math on profitability: The company's adjusted Q3 2025 EPS was $0.51, and the trailing twelve months (TTM) net income was $857 Million. The market sees this as a well-managed regional bank, but the M&A speculation adds a powerful, near-term catalyst to the long-term value story.

Institutional Ownership and Major Shareholders of First Horizon Corporation (FHN)

If you're looking at First Horizon Corporation (FHN), the key takeaway is that this is a stock overwhelmingly controlled by large, professional money managers. Institutional investors-think BlackRock, Vanguard, and the big banks-own a staggering 80.28% to 89.8% of the company's common stock, based on recent 2025 filings. This level of concentration means their collective decisions drive the stock price and, frankly, much of the company's strategic direction.

This isn't a retail-investor-driven stock; it's a battleground for large funds. You need to watch their movements, not just the headlines.

Here's the quick math: With approximately 492 million total shares outstanding, institutions hold around 442.15 million shares, representing a total market value of roughly $9.42 billion as of Q3 2025.

The concentration of ownership is significant, with the top 25 shareholders owning 70.71% of the company.

Top Institutional Investors and Their Holdings

The list of FHN's largest shareholders reads like a who's who of global asset management. These firms are primarily passive investors, meaning they track major indices, but their sheer size gives them immense influence. The three largest holders alone control over a quarter of the company's shares, according to their September 30, 2025, filings.

The largest institutional holders of First Horizon Corporation (FHN) as of Q3 2025 are:

• BlackRock, Inc.: Holding 59,688,345 shares, valued at approximately $1.3 billion.
• The Vanguard Group, Inc.: Holding 50,487,836 shares, valued at approximately $1.1 billion.
• Bank of New York Mellon Corp: Holding 32,441,190 shares, valued at approximately $682.5 million.

Other major players include State Street Corp and Dimensional Fund Advisors LP, rounding out the core group of index-fund giants. You can learn more about the foundational context of the company's structure at First Horizon Corporation (FHN): History, Ownership, Mission, How It Works & Makes Money.

Recent Shifts in Institutional Ownership

Institutional interest in FHN has been a mixed bag recently, signaling a divergence in strategy among the big funds, which is defintely worth noting. In the third quarter of 2025, some of the largest holders were sellers, while others were aggressive buyers.

For example, BlackRock, Inc. was a buyer, increasing its position by over 2.2 million shares. However, two other top holders reduced their stakes: The Vanguard Group, Inc. sold off over 319,507 shares, and Bank of New York Mellon Corp sold over 1.1 million shares.

The most dramatic moves came from active managers and hedge funds. Millennium Management LLC, an active hedge fund, increased its stake by an eye-watering 300% to hold 25,405,699 shares, valued at $541.6 million. Also, Barclays PLC reported a massive increase of +370.5% in its position, acquiring over 2.2 million shares.

Here is a snapshot of the recent activity from key institutions, based on Q3 2025 filings:

The Impact of Institutional Investors on FHN's Strategy

When institutions own this much of a company, they aren't just passive bystanders; they are the ultimate arbiters of its strategy. Their role is twofold: they create both volatility and a powerful check on management.

On the volatility side, FHN's stock has a relatively high beta of 1.38 and a volatility of 30.38. This means the stock is more sensitive to broad market movements, and when a few large funds decide to rebalance or exit, the stock price moves sharply. The stock's drop of as much as 14% following the CEO's mention of potential acquisition plans in the Q3 2025 earnings call is a perfect example of institutional money reacting swiftly to strategic uncertainty.

As a check on strategy, institutional investors are the primary audience for the company's capital allocation decisions. The announcement of a $1.20 billion stock repurchase plan, for instance, is a clear signal to these large shareholders that management believes the stock is undervalued and is committed to boosting shareholder returns. This is a direct response to institutional pressure and a bid to maintain confidence.

The buying by hedge funds like Millennium Management suggests a belief in the bank's current valuation and future trajectory, perhaps anticipating a successful M&A move or a continued strong performance like the reported Q3 2025 adjusted EPS of $0.51, which beat analyst estimates. Your action item is to track the next 13F filings to see if the net selling trend from some index funds continues, as that would signal a potential shift in their index weightings or a more cautious view on the regional banking sector.

Key Investors and Their Impact on First Horizon Corporation (FHN)

You want to know who is driving the bus at First Horizon Corporation (FHN) and why they're buying now, and the short answer is that the institutional giants are still firmly in control, but they are also defintely watching management's strategic moves closely. The investor profile is dominated by passive asset managers, but recent volatility shows their collective influence is immediate and powerful, especially around M&A talk.

As of the 2025 fiscal year data, institutional investors-the big funds, pension managers, and endowments-hold the lion's share of First Horizon Corporation (FHN) stock. We're talking about over 626 different institutions holding positions. This kind of ownership structure means the focus is on long-term capital preservation and consistent returns, which explains the bank's recent emphasis on shareholder-friendly capital deployment.

• Vanguard Group Inc. is the largest holder, with a stake valued at approximately $1.14 billion.
• Bank of New York Mellon Corp follows, holding a position worth about $733.50 million.
• State Street Corp rounds out the top three, with holdings valued at $449.44 million.

The Influence of Institutional Holdings and Recent Moves

These massive institutional holdings, often by passive index funds, mean the overall stock price movement tends to track the broader financial sector, but management decisions can still trigger sharp, immediate reactions. You see this influence play out in two key areas: capital allocation and strategic direction.

Here's the quick math on capital returns: In October 2025, First Horizon Corporation (FHN) announced a new common stock repurchase program authorizing up to $1.2 billion in buybacks. This is a direct response to shareholder demand for capital return, and it's a significant move, replacing a previous authorization that had about $180 million remaining. Plus, the company declared a quarterly cash dividend of $0.15 per share, reinforcing its appeal to income-focused investors.

But the market will punish a misstep quickly. When CEO Bryan Jordan mentioned potential bank acquisition plans during the Q3 2025 earnings call in October, the stock price immediately dropped by as much as 14%. That sharp decline tells you that while the company reported strong third-quarter earnings-net income available to common shareholders of $254 million, or $0.50 in earnings per share (EPS)-investors were caught off guard and reacted negatively to the perceived risk of an acquisition. That's investor influence in real-time. If you want a deeper dive into the bank's performance, you should check out Breaking Down First Horizon Corporation (FHN) Financial Health: Key Insights for Investors.

Notable Stake Changes and the Activist Watch

While there hasn't been a loud, public activist investor campaign in 2025, the recent 13F filings show some aggressive positioning by hedge funds. The most notable recent move came from Citadel Advisors Llc, which significantly increased its stake as of the end of the third quarter of 2025. This kind of aggressive buying from a major hedge fund is a signal to watch.

The nearly 96% increase in holdings by Citadel Advisors Llc is a strong vote of confidence in the stock's near-term value proposition, especially after the stock price volatility. It suggests a belief that the bank is undervalued based on its fundamentals, like its 3Q 2025 balance sheet showing $83.2 billion in assets. What this estimate hides, of course, is the execution risk of the potential acquisition mentioned by the CEO. Investors are buying in, but they expect management to stick to the core principles of safety and soundness, profitability, and growth.

The key takeaway is that the major investors are telling First Horizon Corporation (FHN) to focus on returning capital and executing on organic growth, not taking on big, risky mergers. Your next step should be to monitor the pace of the $1.2 billion share repurchase program-that will show you how aggressively management is acting on shareholder value.

Market Impact and Investor Sentiment

If you're looking at First Horizon Corporation (FHN), the immediate takeaway is that institutional money is defintely leaning positive, despite some near-term stock volatility. The high level of institutional ownership-sitting around 88.38% as of late 2025-signals a strong belief in the regional bank's long-term stability and strategy.

This massive institutional presence means the stock price is highly sensitive to their collective moves, but right now, the signal is one of accumulating confidence. We've seen major players like Strs Ohio increase their holdings by 7.3% in the second quarter of 2025, bringing their stake to 346,908 shares, worth approximately $7.35 million.

Investor Sentiment: Who's Buying and Why

The sentiment from major shareholders is largely positive, rooted in the company's capital deployment strategy and solid financial execution. Management's announcement of a substantial $1.20 billion stock repurchase plan reinforces the bull case: they believe the stock is undervalued. That's a clear, concrete signal to the market.

The largest shareholder, BlackRock, Inc., held a significant 12% of shares outstanding in late 2024, and while recent data is dynamic, this anchor position is a key factor. The institutional buying suggests they are looking past macro-level banking uncertainties and focusing on First Horizon Corporation's core performance. To be fair, you do see some insider selling, like the executive who sold 138,010 shares in July-August 2025, but this is often a routine liquidity move for long-held shares, not a sign of a fundamental problem.

• Institutional ownership is high: 88.38%.
• Management authorized a $1.20 billion share repurchase.
• Q3 2025 adjusted EPS beat expectations at $0.51.

Recent Market Reactions and Volatility

The stock market's reaction has been mixed, reflecting a push-pull between strong fundamentals and external uncertainty. For example, the stock finished up nearly 3% in a single day in November 2025, contributing to a healthy 10.5% total shareholder return for the year as investors responded to stabilizing fundamentals. That's momentum you can't ignore.

But still, the market can be skittish. Unexpected messaging around mergers and acquisitions (M&A) during the Q3 2025 earnings call caused the stock to decline by over 9%, showing how quickly sentiment can turn on strategic ambiguity. This volatility is a reminder that in the regional banking sector, the market is constantly pricing in-or out-the risk of future consolidation.

Analyst Perspectives: The Buy Consensus

Wall Street analysts are generally bullish, which helps stabilize the stock. The consensus rating from analysts is a 'Buy' or 'Moderate Buy,' based on the latest research in November 2025. This positive outlook is grounded in the bank's operational performance, especially its net interest income (NII).

Here's the quick math: Analysts have set a consensus price target ranging from $23.08 to $24.41, with the high target at $28.00 (issued by Barclays in November 2025). This suggests a forecasted upside of over 12% from the current price. They've also raised 2025 core earnings per share (EPS) estimates, with one firm increasing it to $1.80 from $1.73, citing higher NII assumptions. This confidence is driven by the company's Q3 2025 adjusted net income available to common shareholders (NIAC) of $263 million, up from $229 million in Q2 2025. They are executing well.

A look at the key financial data from the 2025 fiscal year shows why analysts are optimistic:

This financial strength, paired with the company's commitment to its stakeholders, is a major part of the investment thesis. You can see more on their core strategy here: Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

The biggest risk remains the M&A uncertainty and the potential for provision expenses to rise, but the current institutional buying and analyst ratings suggest the market is willing to give First Horizon Corporation the benefit of the doubt, banking on its stable credit quality and diversified business mix.

Next Step: Review the latest 10-Q filing (Nov 6, 2025) to see the detailed breakdown of the $675 million net interest income and any updated guidance on the $1.20 billion buyback program.