HSBC Initiates Coverage on Truist Financial (NYSE:TFC)

Key Points

• HSBC initiated coverage of Truist Financial with a “buy” rating and a $61 price target, implying approximately 28.8% upside from the stock’s $47.36 price. The broader analyst consensus remains “hold,” with an average target of $55.44.
• Truist’s latest quarterly results exceeded expectations, with earnings per share of $1.23 versus the $1.08 consensus and revenue of $5.31 billion. Revenue increased 5.6% year over year, while analysts expect full-year EPS of $4.62.
• Institutional investors own 71.28% of Truist’s shares, while recent insider activity was mixed: CEO Michael Lyons purchased 21,000 shares, but insiders sold 30,516 shares valued at roughly $1.58 million during the last quarter.

Research analysts at HSBC initiated coverage on shares of Truist Financial (NYSE:TFC - Get Free Report) in a report released on Monday. The firm set a "buy" rating and a $61.00 price target on the insurance provider's stock. HSBC's price target would suggest a potential upside of 28.80% from the company's current price.

Several other research firms also recently issued reports on TFC. Weiss Ratings restated a "buy (b)" rating on shares of Truist Financial in a report on Wednesday, July 29th. Keefe, Bruyette & Woods increased their target price on Truist Financial from $53.00 to $55.00 and gave the company a "market perform" rating in a research note on Monday, July 20th. Evercore reissued an "outperform" rating and set a $57.00 price target on shares of Truist Financial in a research report on Monday, July 6th. Raymond James Financial restated a "market perform" rating on shares of Truist Financial in a research note on Wednesday, July 1st. Finally, Morgan Stanley restated an "equal weight" rating and issued a $54.00 price target (down from $62.00) on shares of Truist Financial in a research report on Monday, July 6th. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $55.44.

Truist Financial Stock Down 0.6%

NYSE:TFC traded down $0.30 on Monday, reaching $47.36. The stock had a trading volume of 195,642 shares, compared to its average volume of 8,761,354. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.73. The company has a 50-day moving average of $50.89 and a 200 day moving average of $49.48. The stock has a market cap of $57.86 billion, a P/E ratio of 10.84, a price-to-earnings-growth ratio of 0.99 and a beta of 0.88. Truist Financial has a 12-month low of $40.78 and a 12-month high of $56.19.

Truist Financial (NYSE:TFC - Get Free Report) last announced its earnings results on Friday, July 17th. The insurance provider reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.08 by $0.15. The business had revenue of $5.31 billion for the quarter, compared to analyst estimates of $5.24 billion. Truist Financial had a return on equity of 10.06% and a net margin of 19.13%.The company's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.91 earnings per share. On average, research analysts predict that Truist Financial will post 4.62 earnings per share for the current year.

Insider Activity

In other news, CEO Michael P. Lyons bought 21,000 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was purchased at an average price of $48.36 per share, for a total transaction of $1,015,560.00. Following the transaction, the chief executive officer owned 21,000 shares in the company, valued at approximately $1,015,560. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, Director K. Boyer, Jr. sold 3,986 shares of the firm's stock in a transaction that occurred on Thursday, July 23rd. The shares were sold at an average price of $50.70, for a total transaction of $202,090.20. Following the completion of the sale, the director owned 10,270 shares in the company, valued at $520,689. The trade was a 27.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 30,516 shares of company stock valued at $1,584,428. 0.15% of the stock is owned by company insiders.

Hedge Funds Weigh In On Truist Financial

Hedge funds and other institutional investors have recently made changes to their positions in the business. Capital International Investors raised its stake in Truist Financial by 0.7% during the 4th quarter. Capital International Investors now owns 108,358,164 shares of the insurance provider's stock valued at $5,332,835,000 after acquiring an additional 715,433 shares in the last quarter. BlackRock Inc. acquired a new position in Truist Financial during the 2nd quarter worth $4,959,834,000. State Street Corp grew its stake in shares of Truist Financial by 0.9% in the second quarter. State Street Corp now owns 58,692,619 shares of the insurance provider's stock worth $2,924,066,000 after purchasing an additional 501,026 shares in the last quarter. Victory Capital Management Inc. grew its stake in shares of Truist Financial by 7.5% in the fourth quarter. Victory Capital Management Inc. now owns 31,964,393 shares of the insurance provider's stock worth $1,572,968,000 after purchasing an additional 2,226,288 shares in the last quarter. Finally, Auto Owners Insurance Co increased its holdings in shares of Truist Financial by 4,821.0% during the fourth quarter. Auto Owners Insurance Co now owns 14,172,480 shares of the insurance provider's stock valued at $697,428,000 after purchasing an additional 13,884,480 shares during the period. 71.28% of the stock is currently owned by institutional investors and hedge funds.

About Truist Financial

Truist Financial Corporation NYSE: TFC is a financial services company formed through the 2019 merger of BB&T Corporation and SunTrust Banks. Headquartered in Charlotte, North Carolina, Truist operates as a major commercial bank serving consumers, businesses, and institutions primarily across the United States.

Through its consumer and business banking operations, Truist provides checking and savings accounts, credit cards, mortgages, home equity lending, personal loans, commercial lending, treasury management, and payment services.

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