Trustmark (NASDAQ:TRMK) Sees Large Volume Increase - Time to Buy?

Key Points

• Trading volume jumped 111% to 879,514 shares, and Trustmark ended at $48.20, up from its prior close of $47.84.
• Recent attention centers on Hancock Whitney’s proposed $3.2 billion all-stock acquisition of Trustmark. Shareholder-rights firms are reviewing whether the deal offers the best value, while weakness in Hancock Whitney shares could make the transaction’s implied value more volatile; these reviews are not findings of wrongdoing.
• Analysts’ consensus rating is “Moderate Buy,” with an average target of $47.38. In its latest quarter, Trustmark met EPS expectations at $1.00, while revenue of $212.26 million fell short of estimates; revenue grew 2.3% year over year.

Trustmark Corporation (NASDAQ:TRMK - Get Free Report) shares saw an uptick in trading volume on Friday. 879,514 shares traded hands during mid-day trading, an increase of 111% from the average daily volume of 416,792 shares. The stock last traded at $48.2010 and had previously closed at $47.84.

Trending Headlines about Trustmark

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

• Positive Sentiment: The acquisition announcement has supported sentiment toward Trustmark, with shares moving higher as investors assess the proposed transaction. Read More.
• Neutral Sentiment: Investor-rights law firms have announced reviews of whether Trustmark’s board secured the best available price for shareholders. These are investigations, not findings of wrongdoing, but could add uncertainty around the deal. Read More.
• Negative Sentiment: Hancock Whitney shares fell sharply after the announcement. Because the transaction is all-stock, weakness in the acquirer’s shares may add volatility to the deal’s implied value for Trustmark holders. Read More.

Analysts Set New Price Targets

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

Trustmark Price Performance

The stock's 50-day moving average price is $45.62 and its 200-day moving average price is $44.93. The company has a market capitalization of $2.78 billion, a price-to-earnings ratio of 12.04 and a beta of 0.69. The company has a quick ratio of 0.88, a current ratio of 0.89 and a debt-to-equity ratio of 0.11.

Trustmark (NASDAQ:TRMK - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The financial services provider reported $1.00 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.00. The firm had revenue of $212.26 million for the quarter, compared to analysts' expectations of $215.04 million. Trustmark had a net margin of 20.90% and a return on equity of 10.78%. The business's revenue for the quarter was up 2.3% on a year-over-year basis. During the same period last year, the firm earned $0.94 earnings per share. Equities research analysts anticipate that Trustmark Corporation will post 3.93 earnings per share for the current year.

Trustmark Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Tuesday, December 1st. Trustmark's dividend payout ratio is 25.00%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Trustmark Bank Trust Department raised its stake 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 worth $13,815,000 after purchasing an additional 37,368 shares during the period. Russell Investments Group Ltd. grew its position in Trustmark by 2.7% during the third quarter. Russell Investments Group Ltd. now owns 33,615 shares of the financial services provider's stock valued at $1,507,000 after buying an additional 891 shares during the period. Eurizon Capital SGR S.p.A. bought a new position in Trustmark during the third quarter valued at about $28,000. Maryland State Retirement & Pension System increased its holdings in Trustmark by 50.2% during the third quarter. Maryland State Retirement & Pension System now owns 12,847 shares of the financial services provider's stock worth $576,000 after buying an additional 4,292 shares during the last quarter. Finally, Jefferies Financial Group Inc. increased its holdings in Trustmark by 1.6% during the third quarter. Jefferies Financial Group Inc. now owns 17,638 shares of the financial services provider's stock worth $791,000 after buying an additional 281 shares during the last quarter. 67.64% of the stock is owned by institutional investors and hedge funds.

About Trustmark

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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