TFS Financial (NASDAQ:TFSL) Reaches New 52-Week High - Should You Buy?

Key Points

• Shares hit a new 52-week high of $15.43 (last around $15.17), but the stock carries a MarketBeat consensus rating of "Hold" with an average target of $15.00, implying limited upside from current levels.
• The company pays a quarterly dividend equal to a $1.13 annualized payout with a 7.5% yield, however the dividend payout ratio is an outsized 353%, raising sustainability concerns.
• Latest quarter: EPS of $0.08 met estimates and revenue slightly beat, yet profitability is modest (ROE 4.79%) while valuation is high (PE 47.42), suggesting earnings are thin relative to price.

Shares of TFS Financial Corporation (NASDAQ:TFSL - Get Free Report) hit a new 52-week high on Friday . The company traded as high as $15.43 and last traded at $15.1670, with a volume of 208305 shares. The stock had previously closed at $15.04.

Wall Street Analyst Weigh In

TFSL has been the topic of a number of research analyst reports. Wall Street Zen lowered TFS Financial from a "hold" rating to a "sell" rating in a research note on Saturday, January 31st. Zacks Research upgraded TFS Financial to a "hold" rating in a research report on Monday, January 19th. Weiss Ratings reiterated a "buy (b-)" rating on shares of TFS Financial in a research report on Friday, March 27th. Finally, Piper Sandler began coverage on TFS Financial in a research report on Friday, January 16th. They issued a "neutral" rating and a $15.00 target price on the stock. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $15.00.

TFS Financial Trading Up 0.7%

The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 2.60. The company has a 50-day simple moving average of $14.23 and a 200 day simple moving average of $14.07. The firm has a market cap of $4.25 billion, a PE ratio of 47.42 and a beta of 0.68.

TFS Financial (NASDAQ:TFSL - Get Free Report) last announced its earnings results on Thursday, April 30th. The bank reported $0.08 earnings per share for the quarter, hitting the consensus estimate of $0.08. The business had revenue of $85.24 million during the quarter, compared to the consensus estimate of $84.70 million. TFS Financial had a return on equity of 4.79% and a net margin of 11.29%. As a group, sell-side analysts forecast that TFS Financial Corporation will post 0.33 earnings per share for the current fiscal year.

TFS Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 11th were paid a dividend of $0.2825 per share. This represents a $1.13 annualized dividend and a dividend yield of 7.5%. The ex-dividend date of this dividend was Wednesday, March 11th. TFS Financial's dividend payout ratio is presently 353.13%.

Insider Transactions at TFS Financial

In other news, Director Anthony J. Asher acquired 5,000 shares of TFS Financial stock in a transaction that occurred on Thursday, March 12th. The stock was purchased at an average cost of $13.37 per share, with a total value of $66,850.00. Following the purchase, the director owned 49,314 shares in the company, valued at $659,328.18. This trade represents a 11.28% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Barbara J. Anderson sold 11,000 shares of the stock in a transaction on Tuesday, February 3rd. The shares were sold at an average price of $14.21, for a total value of $156,310.00. Following the completion of the transaction, the director directly owned 6,200 shares of the company's stock, valued at approximately $88,102. This represents a 63.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 78,000 shares of company stock worth $1,164,986 in the last quarter. 0.72% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its stake in TFS Financial by 2.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,931,751 shares of the bank's stock valued at $39,227,000 after purchasing an additional 65,669 shares during the last quarter. Lakewood Capital Management LP grew its holdings in TFS Financial by 19.9% in the 3rd quarter. Lakewood Capital Management LP now owns 2,533,382 shares of the bank's stock valued at $33,377,000 after buying an additional 420,000 shares in the last quarter. State Street Corp grew its holdings in TFS Financial by 24.6% in the 4th quarter. State Street Corp now owns 1,966,004 shares of the bank's stock valued at $26,305,000 after buying an additional 387,992 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in TFS Financial by 23.2% in the 4th quarter. Bank of New York Mellon Corp now owns 1,869,302 shares of the bank's stock valued at $25,011,000 after buying an additional 352,093 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in TFS Financial by 5.4% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,019,107 shares of the bank's stock valued at $13,197,000 after buying an additional 52,350 shares in the last quarter. 9.81% of the stock is owned by institutional investors and hedge funds.

About TFS Financial

TFS Financial Corporation is a bank holding company for TFS Capital Bank, headquartered in Austin, Texas. The company offers commercial banking and specialty finance solutions designed to meet the unique needs of small and mid-sized businesses. Through its bank charter, TFS Financial provides a full suite of deposit products alongside a range of lending options tailored to growing enterprises.

The bank's lending portfolio includes equipment financing, working capital lines of credit, and term loans structured to support capital expenditures and operational needs.

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