Truist Financial Corporation $TFC Stake Lifted by California Public Employees Retirement System

Key Points

• California Public Employees Retirement System increased its stake in Truist by 1.3% to 2,226,147 shares — about 0.17% of the company, valued at roughly $101.8 million at the end of the quarter.
• Truist’s board authorized a $10.0 billion share buyback (up to ~15.7% of shares) and the bank pays a quarterly $0.52 dividend (annualized $2.08) for a 4.7% yield
• The company missed Q results (EPS $1.00 vs. $1.09 est.; revenue $4.93B vs. $5.32B), trades at a P/E of ~11.7 with a market cap near $55.6B, and carries a consensus analyst target of $56.47 (Moderate Buy).

California Public Employees Retirement System lifted its stake in shares of Truist Financial Corporation (NYSE:TFC - Free Report) by 1.3% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,226,147 shares of the insurance provider's stock after acquiring an additional 29,360 shares during the quarter. California Public Employees Retirement System owned about 0.17% of Truist Financial worth $101,779,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its holdings in shares of Truist Financial by 148.5% in the fourth quarter. Brighton Jones LLC now owns 23,581 shares of the insurance provider's stock valued at $1,023,000 after buying an additional 14,093 shares during the period. Woodline Partners LP boosted its stake in Truist Financial by 39.5% during the first quarter. Woodline Partners LP now owns 111,177 shares of the insurance provider's stock valued at $4,575,000 after buying an additional 31,454 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Truist Financial during the second quarter worth about $575,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its holdings in Truist Financial by 6.7% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 321,172 shares of the insurance provider's stock worth $13,807,000 after acquiring an additional 20,234 shares during the period. Finally, Creative Planning raised its position in Truist Financial by 39.1% in the second quarter. Creative Planning now owns 388,648 shares of the insurance provider's stock worth $16,708,000 after acquiring an additional 109,180 shares in the last quarter. Institutional investors own 71.28% of the company's stock.

Truist Financial Stock Up 1.6%

TFC stock opened at $44.53 on Tuesday. The company has a 50 day moving average of $50.48 and a two-hundred day moving average of $47.69. The company has a market cap of $55.63 billion, a price-to-earnings ratio of 11.69, a PEG ratio of 0.75 and a beta of 0.87. Truist Financial Corporation has a 12-month low of $33.56 and a 12-month high of $56.19. The company has a quick ratio of 0.86, a current ratio of 0.87 and a debt-to-equity ratio of 0.70.

Truist Financial (NYSE:TFC - Get Free Report) last posted its quarterly earnings results on Wednesday, January 21st. The insurance provider reported $1.00 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.09). Truist Financial had a net margin of 17.09% and a return on equity of 9.03%. The company had revenue of $4.93 billion for the quarter, compared to analysts' expectations of $5.32 billion. During the same quarter in the prior year, the firm earned $0.91 earnings per share. The company's revenue was up 3.6% on a year-over-year basis. On average, equities analysts anticipate that Truist Financial Corporation will post 4 earnings per share for the current fiscal year.

Truist Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 2nd. Shareholders of record on Friday, February 13th were paid a $0.52 dividend. The ex-dividend date was Friday, February 13th. This represents a $2.08 dividend on an annualized basis and a yield of 4.7%. Truist Financial's payout ratio is 54.59%.

Truist Financial announced that its board has initiated a share buyback plan on Tuesday, December 16th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the insurance provider to purchase up to 15.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have weighed in on TFC shares. Keefe, Bruyette & Woods upped their price target on shares of Truist Financial from $49.00 to $53.00 and gave the company a "market perform" rating in a report on Wednesday, December 17th. Robert W. Baird upgraded shares of Truist Financial from a "neutral" rating to an "outperform" rating and set a $52.00 target price on the stock in a report on Monday, March 9th. Barclays lowered shares of Truist Financial from an "equal weight" rating to an "underweight" rating and increased their target price for the company from $47.00 to $56.00 in a research note on Monday, January 5th. Argus raised their target price on shares of Truist Financial from $54.00 to $58.00 and gave the stock a "buy" rating in a report on Friday, January 23rd. Finally, Evercore restated an "outperform" rating on shares of Truist Financial in a research report on Thursday, February 5th. Nine investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $56.47.

Insider Activity

In other Truist Financial news, CAO Cynthia B. Powell sold 3,500 shares of the company's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $52.49, for a total value of $183,715.00. Following the transaction, the chief accounting officer directly owned 667 shares of the company's stock, valued at $35,010.83. This represents a 83.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Michael Baron Maguire sold 13,000 shares of the firm's stock in a transaction dated Monday, January 26th. The stock was sold at an average price of $50.13, for a total value of $651,690.00. Following the sale, the chief financial officer directly owned 74,323 shares of the company's stock, valued at $3,725,811.99. This trade represents a 14.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.14% of the company's stock.

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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