Trustmark (NASDAQ:TRMK) Stock Gets Downgrade from Brean Capital

Key Points

• Brean Capital downgraded Trustmark from “strong buy” to “hold.” Analysts overall also have a consensus “hold” rating, with an average price target of $47.38.
• Trustmark reported quarterly earnings of $1.00 per share, matching estimates, while revenue of $212.26 million came in below expectations; revenue increased 2.3% year over year.
• Trustmark is set to be acquired by Hancock Whitney in a reported $3.2 billion deal. Law firms have announced investigations into whether the board secured the best value for shareholders, though no wrongdoing has been established.

Trustmark (NASDAQ:TRMK - Get Free Report) was downgraded by analysts at Brean Capital from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Friday, Zacks reports.

Several other analysts have also recently issued reports on TRMK. Keefe, Bruyette & Woods increased their target price on Trustmark from $48.00 to $50.00 and gave the stock a "market perform" rating in a research report on Wednesday, September 16th. Weiss Ratings reissued a "buy (a-)" rating on shares of Trustmark in a report on Thursday. Piper Sandler upped their price target on Trustmark from $45.50 to $47.00 and gave the stock a "neutral" rating in a research note on Thursday, July 30th. Wall Street Zen upgraded Trustmark from a "sell" rating to a "hold" rating in a research note on Sunday, August 9th. Finally, DA Davidson increased their price objective on shares of Trustmark from $46.00 to $48.00 and gave the company a "neutral" rating in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $47.38.

Trustmark Price Performance

Shares of TRMK stock traded up $0.04 on Friday, hitting $47.88. 2,930,839 shares of the stock traded hands, compared to its average volume of 606,592. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.89 and a quick ratio of 0.88. Trustmark has a 52 week low of $36.41 and a 52 week high of $49.04. The firm has a 50 day simple moving average of $45.66 and a two-hundred day simple moving average of $44.97. The firm has a market cap of $2.76 billion, a price-to-earnings ratio of 11.97 and a beta of 0.69.

Trustmark (NASDAQ:TRMK - Get Free Report) last issued its earnings results on Tuesday, October 27th. The financial services provider reported $1.00 earnings per share for the quarter, hitting the consensus estimate of $1.00. Trustmark had a net margin of 20.90% and a return on equity of 10.78%. The company had revenue of $212.26 million during the quarter, compared to the consensus estimate of $215.04 million. During the same quarter in the prior year, the firm posted $0.94 EPS. Trustmark's quarterly revenue was up 2.3% compared to the same quarter last year. As a group, equities research analysts predict that Trustmark will post 3.93 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Trustmark

A number of hedge funds have recently made changes to their positions in the company. Marshall Wace LLP bought a new stake in Trustmark in the 3rd quarter worth approximately $702,000. Empowered Funds LLC raised its holdings in shares of Trustmark by 1.4% during the 3rd quarter. Empowered Funds LLC now owns 268,965 shares of the financial services provider's stock worth $12,058,000 after acquiring an additional 3,620 shares in the last quarter. Trustmark Bank Trust Department boosted its position in shares of Trustmark by 13.8% during the 3rd quarter. Trustmark Bank Trust Department now owns 308,169 shares of the financial services provider's stock valued at $13,815,000 after acquiring an additional 37,368 shares during the last quarter. Russell Investments Group Ltd. boosted its position in shares of Trustmark by 2.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 33,615 shares of the financial services provider's stock valued at $1,507,000 after acquiring an additional 891 shares during the last quarter. Finally, Eurizon Capital SGR S.p.A. bought a new position in shares of Trustmark during the 3rd quarter valued at approximately $28,000. 67.64% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Trustmark

These are some of the TRMK headlines that stood out recently:

• Positive Sentiment: The proposed acquisition gives Trustmark shareholders a defined path to a sale, while analysts point to potential operational synergies from combining the two regional banks. Hancock Whitney to Acquire Trustmark in $3.2 Billion Deal Hancock Whitney and Trustmark: Significant Operational Synergies
• Neutral Sentiment: Trustmark and Hancock Whitney held an M&A call to discuss the deal, but the available transcript and slideshow listings provide no additional terms or financial details. Trustmark M&A Call Transcript
• Neutral Sentiment: Two law firms said they are investigating whether Trustmark’s board secured the best value and whether shareholders may have claims. These announcements could add uncertainty, but do not establish wrongdoing or indicate that the deal will change. Amparo Law Firm Investigation

Trustmark Company Profile

Trustmark Corporation is a bank holding company headquartered in Jackson, Mississippi. Through its subsidiary, Trustmark National Bank, the company provides commercial and consumer banking services, including deposit accounts, lending, cash management and digital banking. Trustmark also offers wealth management and insurance services to individuals and businesses. Its insurance operations provide services such as employee benefits and risk management. Founded in 1889, Trustmark serves customers across the southeastern United States, with a presence in Mississippi, Alabama, Florida, Tennessee and Texas.

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