Bank of America Corp DE Cuts Stake in Truist Financial Corporation $TFC

Key Points

• Bank of America reduced its Truist Financial stake by 1.3% in the first quarter, selling 484,471 shares and retaining 37.9 million shares worth approximately $1.74 billion. Institutional investors collectively own 71.28% of TFC.
• Truist reported quarterly EPS of $1.23, beating estimates by $0.15, while revenue rose 5.6% year over year to $5.31 billion. The company also declared a $0.52 quarterly dividend, implying a 4.0% yield.
• Analyst sentiment is mixed, with seven Buy, nine Hold, and two Sell ratings; the consensus rating is Hold with a $54.67 price target, compared with a recent share price of $51.98.

Bank of America Corp DE reduced its position in shares of Truist Financial Corporation (NYSE:TFC - Free Report) by 1.3% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 37,921,435 shares of the insurance provider's stock after selling 484,471 shares during the quarter. Bank of America Corp DE owned 3.04% of Truist Financial worth $1,743,248,000 at the end of the most recent quarter.

Other large investors have also bought and sold shares of the company. Centaurus Financial Inc. lifted its stake in shares of Truist Financial by 4.5% in the first quarter. Centaurus Financial Inc. now owns 10,255 shares of the insurance provider's stock worth $471,000 after buying an additional 439 shares in the last quarter. Oddo BHF Asset Management Sas increased its position in shares of Truist Financial by 5.7% during the first quarter. Oddo BHF Asset Management Sas now owns 25,961 shares of the insurance provider's stock valued at $1,193,000 after acquiring an additional 1,394 shares in the last quarter. Bull Harbor Capital LLC bought a new stake in shares of Truist Financial during the first quarter valued at approximately $254,000. Strategic Investment Advisors MI purchased a new position in Truist Financial in the 1st quarter worth approximately $1,024,000. Finally, IFS Group LLC purchased a new position in Truist Financial in the 1st quarter worth approximately $322,000. 71.28% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director K. David Jr. Boyer sold 3,986 shares of the stock in a transaction that occurred on Thursday, July 23rd. The stock was sold at an average price of $50.70, for a total transaction of $202,090.20. Following the completion of the transaction, the director directly owned 10,270 shares of the company's stock, valued at approximately $520,689. This represents a 27.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO William H. Rogers, Jr. sold 13,250 shares of the firm's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $52.36, for a total value of $693,770.00. The disclosure for this sale is available in the SEC filing. 0.15% of the stock is owned by corporate insiders.

Truist Financial Trading Down 0.6%

TFC stock opened at $51.98 on Friday. Truist Financial Corporation has a 1-year low of $40.78 and a 1-year high of $56.19. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.86 and a quick ratio of 0.86. The company has a market capitalization of $64.76 billion, a price-to-earnings ratio of 11.92, a PEG ratio of 0.95 and a beta of 0.89. The business has a 50 day simple moving average of $50.21 and a two-hundred day simple moving average of $49.60.

Truist Financial (NYSE:TFC - Get Free Report) last released its quarterly earnings data on Friday, July 17th. The insurance provider reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.15. Truist Financial had a net margin of 19.13% and a return on equity of 10.06%. The firm had revenue of $5.31 billion for the quarter, compared to analysts' expectations of $5.24 billion. During the same quarter last year, the business posted $0.91 earnings per share. The company's revenue for the quarter was up 5.6% compared to the same quarter last year. Research analysts anticipate that Truist Financial Corporation will post 4.59 EPS for the current fiscal year.

Truist Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be issued a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend is Friday, August 14th. Truist Financial's dividend payout ratio is 47.71%.

Analysts Set New Price Targets

Several brokerages have commented on TFC. Evercore reiterated an "outperform" rating and set a $57.00 target price on shares of Truist Financial in a research note on Monday, July 6th. 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 note on Monday, July 6th. Keefe, Bruyette & Woods upped their price target on Truist Financial from $53.00 to $55.00 and gave the company a "market perform" rating in a report on Monday, July 20th. Wall Street Zen downgraded Truist Financial from a "hold" rating to a "sell" rating in a research note on Monday, June 29th. Finally, UBS Group cut shares of Truist Financial from a "buy" rating to a "neutral" rating and reduced their price objective for the stock from $58.00 to $55.00 in a research note on Tuesday, July 7th. Seven investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $54.67.

Truist Financial Profile

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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