Truist Financial (NYSE:TFC) Shares Gap Down After Earnings Miss

by · The Cerbat Gem

Truist Financial Corporation (NYSE:TFC – Get Free Report) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $49.14, but opened at $47.83. Truist Financial shares last traded at $50.0480, with a volume of 7,001,500 shares traded.

The insurance provider reported $1.00 earnings per share for the quarter, missing the consensus estimate of $1.09 by ($0.09). Truist Financial had a return on equity of 8.73% and a net margin of 16.84%.The business had revenue of $5.30 billion during the quarter, compared to analysts’ expectations of $5.32 billion. During the same quarter in the prior year, the firm earned $0.91 EPS. The firm’s revenue for the quarter was up 3.6% compared to the same quarter last year.

Truist Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, December 1st. Stockholders of record on Friday, November 14th were issued a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Friday, November 14th. Truist Financial’s dividend payout ratio (DPR) is presently 55.91%.

Truist Financial announced that its Board of Directors has initiated a stock buyback program on Tuesday, December 16th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the insurance provider to buy up to 15.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on TFC. TD Cowen raised their price target on Truist Financial from $55.00 to $59.00 and gave the stock a “buy” rating in a research note on Wednesday, January 7th. Cowen reissued a “buy” rating on shares of Truist Financial in a research report on Wednesday, January 7th. Evercore ISI upgraded Truist Financial from a “hold” rating to an “outperform” rating and boosted their price target for the company from $49.00 to $58.00 in a research note on Tuesday, January 6th. Wall Street Zen cut shares of Truist Financial from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. Finally, Robert W. Baird reissued a “neutral” rating and issued a $52.00 price objective on shares of Truist Financial in a report on Thursday, December 11th. Seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $52.80.

Get Our Latest Stock Analysis on TFC

Insider Transactions at Truist Financial

In other Truist Financial news, Director K. David Jr. Boyer sold 5,160 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $46.45, for a total transaction of $239,682.00. Following the sale, the director owned 10,153 shares in the company, valued at approximately $471,606.85. This trade represents a 33.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.14% of the company’s stock.

Institutional Trading of Truist Financial

Several institutional investors and hedge funds have recently modified their holdings of the company. Brookstone Capital Management raised its stake in Truist Financial by 12.3% in the 3rd quarter. Brookstone Capital Management now owns 336,095 shares of the insurance provider’s stock valued at $15,366,000 after purchasing an additional 36,916 shares during the last quarter. Hilltop National Bank acquired a new stake in shares of Truist Financial in the second quarter valued at about $543,000. Pinnacle Financial Partners Inc lifted its stake in shares of Truist Financial by 30.0% in the third quarter. Pinnacle Financial Partners Inc now owns 174,839 shares of the insurance provider’s stock worth $7,994,000 after buying an additional 40,393 shares in the last quarter. Sterling Investment Management LLC acquired a new position in Truist Financial during the third quarter worth about $923,000. Finally, Arbor Investment Advisors LLC grew its stake in Truist Financial by 1,327.6% during the 3rd quarter. Arbor Investment Advisors LLC now owns 82,718 shares of the insurance provider’s stock valued at $3,782,000 after acquiring an additional 76,924 shares in the last quarter. 71.28% of the stock is currently owned by institutional investors.

Truist Financial Stock Performance

The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.70. The stock’s fifty day simple moving average is $48.46 and its 200 day simple moving average is $46.09. The company has a market cap of $64.09 billion, a price-to-earnings ratio of 13.46, a P/E/G ratio of 0.95 and a beta of 0.89.

About Truist Financial

(Get Free Report)

Truist Financial Corporation is an American bank holding company that provides a broad range of financial services through its primary subsidiary, Truist Bank, and other operating units. The company offers traditional retail banking products and services such as deposit accounts, consumer and residential mortgage lending, and credit and debit card services. Truist also serves commercial clients with middle-market and corporate lending, treasury and payment solutions, and specialty finance products.

Beyond core banking, Truist operates wealth management, asset management, insurance and capital markets businesses.

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