SCS Capital Management LLC Makes New Investment in Truist Financial Corporation $TFC

Key Points

• SCS Capital Management initiated a position in Truist Financial, purchasing 365,746 shares worth approximately $18.2 million. Hedge funds and other institutional investors own 71.28% of the company.
• Analysts remain cautious, with a consensus “Hold” rating and an average price target of $54.67 after several firms lowered their ratings or targets.
• Truist reported stronger-than-expected quarterly results, with earnings of $1.23 per share and revenue of $5.31 billion. The company also declared a quarterly dividend of $0.52 per share, representing a 3.9% annualized yield.

SCS Capital Management LLC bought a new position in Truist Financial Corporation (NYSE:TFC - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The fund bought 365,746 shares of the insurance provider's stock, valued at approximately $18,221,000.

Several other hedge funds have also recently made changes to their positions in TFC. Kemnay Advisory Services Inc. purchased a new position in Truist Financial in the fourth quarter worth about $25,000. Swiss RE Ltd. purchased a new stake in Truist Financial during the fourth quarter valued at approximately $26,000. McMillan Office Inc. purchased a new stake in Truist Financial during the fourth quarter valued at approximately $31,000. Mowery & Schoenfeld Wealth Management LLC lifted its stake in shares of Truist Financial by 190.7% in the 4th quarter. Mowery & Schoenfeld Wealth Management LLC now owns 657 shares of the insurance provider's stock valued at $32,000 after purchasing an additional 431 shares during the last quarter. Finally, Ancora Advisors LLC lifted its stake in shares of Truist Financial by 259.1% in the 3rd quarter. Ancora Advisors LLC now owns 693 shares of the insurance provider's stock valued at $32,000 after purchasing an additional 500 shares during the last quarter. 71.28% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Truist Financial

In other news, CEO William H. Rogers, Jr. sold 13,250 shares of Truist Financial stock in a transaction on Monday, July 20th. The stock was sold at an average price of $52.36, for a total transaction of $693,770.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director K. David Jr. Boyer sold 3,986 shares of the business's stock in a transaction 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 sale, the director directly owned 10,270 shares of the company's stock, valued at $520,689. This represents a 27.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 30,516 shares of company stock valued at $1,584,428 in the last quarter. 0.15% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on TFC shares. UBS Group cut Truist Financial from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $58.00 to $55.00 in a report on Tuesday, July 7th. Citigroup lowered Truist Financial from a "buy" rating to a "neutral" rating and decreased their price target for the company from $63.00 to $54.00 in a report on Tuesday, June 30th. JPMorgan Chase & Co. raised their price target on Truist Financial from $53.00 to $54.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 29th. Royal Bank Of Canada lifted their price objective on shares of Truist Financial from $51.00 to $53.00 and gave the stock an "outperform" rating in a research note on Monday, April 20th. Finally, Morgan Stanley reiterated an "equal weight" rating and set a $54.00 price objective (down from $62.00) on shares of Truist Financial in a research report on Monday, July 6th. Seven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $54.67.

Truist Financial Stock Up 0.2%

Shares of NYSE:TFC opened at $53.08 on Friday. The firm has a market capitalization of $64.84 billion, a PE ratio of 12.17, a price-to-earnings-growth ratio of 1.12 and a beta of 0.89. The business has a 50 day simple moving average of $51.13 and a two-hundred day simple moving average of $49.80. 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.

Truist Financial (NYSE:TFC - Get Free Report) last issued its quarterly earnings results on Friday, July 17th. The insurance provider reported $1.23 earnings per share for the quarter, topping the consensus estimate of $1.08 by $0.15. Truist Financial had a return on equity of 10.06% and a net margin of 19.13%.The firm had revenue of $5.31 billion for the quarter, compared to the consensus estimate of $5.24 billion. During the same period in the prior year, the business posted $0.91 earnings per share. The company's revenue for the quarter was up 5.6% on a year-over-year basis. On average, equities analysts predict that Truist Financial Corporation will post 4.58 EPS for the current year.

Truist Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, August 14th will be given a $0.52 dividend. This represents a $2.08 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend is Friday, August 14th. Truist Financial's dividend payout ratio is 47.71%.

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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