The shares of finance holding company Regions Financial (RF) have exhibited forward momentum over the past few months. However, given weak analyst sentiment regarding the company’s forthcoming earnings release, will the stock be able to sustain its momentum? Read more to find out.Regions Financial Corporation (NYSE:RF) in Birmingham, Ala., is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. It caters to customers in the South, Midwest, and Texas, and operates more than 1,300 banking branches and 2,000 ATMs.
RF’s stock has soared 82% in price over the past year and 21.8% over the past month to close yesterday’s trading session at $23.28, driven by the company’s strategic acquisitions and competitive edge in delivering real-time financing, seamless loan applications, and a prudent approach to risk management.
However, RF’s loan operations look uncertain. The bank's loan-to-deposit ratio is 63.9% currently, implying that only around two-thirds of the bank's deposits have been used to issue loans. Furthermore, the company’s total revenue declined 2% year-over-year to $1.58 billion in the second quarter, ended June 30, 2021. In addition, analysts have reduced their estimates for the company’s forthcoming third-quarter earnings report. So, we think these factors combined could impact RF’s current price rally.