Birmingham, Alabama-based Regions Financial Corporation (RF) is a financial holding company that provides a variety of banking and related products and services to individual and corporate customers. With a market capitalization of $18.8 billion, Regions offers retail, commercial, mortgage banking, and specialty financing across the South, Midwest, and Texas.

Over the past year and into 2025, the regional banking giant has underperformed the broader market. RF’s stock prices increased by 5.8% over the last 52 weeks but have decreased by 11.7% year-to-date (YTD). In contrast, the S&P 500 Index ($SPX) has recorded gains of 8.6% over the past year and a 4.3% decline in 2025.

Narrowing it down, RF slightly outperformed the iShares U.S. Regional Banks ETF (IAT), which saw a 5.5% increase in the last 52 weeks. However, RF lagged behind the IAT, which reported a decline of 11% YTD.

Following the release of its Q1 earnings on April 17, RF’s stock gained marginally. The company reported adjusted total revenue of $1.8 billion, a slight increase from the same quarter last year. Although net interest income rose to $1.2 billion year-over-year, total net interest margin fell by 3 basis points to 3.52%. This decline resulted from decreased lending activity, loan spread compression, and seasonality effects. On a positive note, adjusted earnings per share (EPS) jumped 22.7% year-on-year to $0.54, surpassing consensus estimates by 5.9%.

Looking ahead to the fiscal year 2025, ending in December, analysts are projecting a 5.2% year-over-year growth in adjusted earnings to $2.23 per share. RF boasts a solid earnings surprise track record, exceeding the street’s bottom-line estimates for the last four quarters.

Analytically, Regions holds a consensus “Moderate Buy” rating. From 23 analysts covering the stock, recommendations include nine “Strong Buys,” two “Moderate Buys,” eleven “Holds,” and one “Strong Sell.”

The analyst configuration remains steady in recent months. On April 22, Truist Securities analyst Brian Foran maintained a “Hold” rating on RF but adjusted the price target from $24 to $21.

Currently, RF’s average price target stands at $24.38, indicating a 17.3% premium to its current price. Meanwhile, the highest target of $31 offers considerable upside potential of 49.2%.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.