TFS Financial (NASDAQ:TFSL) Sets New 52-Week High - Time to Buy?

Key Points

• TFS Financial shares hit a new 52-week high, trading as high as $16.20 after closing at $15.97 the prior day. The move came on relatively light volume of 44,466 shares.
• Analyst sentiment is mixed: one firm downgraded the stock to sell, while others recently raised price targets to $15 and $16. Overall, MarketBeat data shows an average rating of Hold with a $15.50 price target.
• The company reported earnings in line with expectations at $0.08 per share and also pays a high dividend yield of about 7.1%. However, the dividend payout ratio is very elevated at 342.42%, which may raise sustainability concerns.

TFS Financial Corporation (NASDAQ:TFSL - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $16.20 and last traded at $16.13, with a volume of 44466 shares trading hands. The stock had previously closed at $15.97.

Analysts Set New Price Targets

Several brokerages have issued reports on TFSL. Wall Street Zen cut TFS Financial from a "hold" rating to a "sell" rating in a research note on Sunday. Keefe, Bruyette & Woods upped their price objective on TFS Financial from $14.00 to $15.00 and gave the company a "market perform" rating in a research note on Monday, May 4th. Piper Sandler upped their price objective on TFS Financial from $15.00 to $16.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of TFS Financial in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $15.50.

TFS Financial Price Performance

The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 2.67. The business has a 50-day moving average price of $14.60 and a two-hundred day moving average price of $14.29. The firm has a market capitalization of $4.49 billion, a price-to-earnings ratio of 48.52 and a beta of 0.70.

TFS Financial (NASDAQ:TFSL - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The bank reported $0.08 earnings per share for the quarter, hitting analysts' consensus estimates of $0.08. The business had revenue of $85.24 million for the quarter, compared to analysts' expectations of $84.70 million. TFS Financial had a return on equity of 4.89% and a net margin of 11.42%. As a group, research analysts forecast that TFS Financial Corporation will post 0.34 EPS for the current year.

TFS Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 11th were issued a $0.2825 dividend. This represents a $1.13 dividend on an annualized basis and a yield of 7.1%. The ex-dividend date of this dividend was Wednesday, March 11th. TFS Financial's dividend payout ratio is 342.42%.

Insider Transactions at TFS Financial

In other TFS Financial news, Director Anthony J. Asher bought 5,000 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were purchased at an average cost of $13.37 per share, for a total transaction of $66,850.00. Following the transaction, the director directly owned 49,314 shares in the company, valued at $659,328.18. The trade was a 11.28% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Cathy W. Zbanek sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $15.26, for a total value of $152,600.00. Following the completion of the sale, the insider owned 61,101 shares in the company, valued at approximately $932,401.26. This represents a 14.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders acquired 33,000 shares of company stock worth $485,100 and sold 30,356 shares worth $457,890. 0.72% of the stock is owned by insiders.

Institutional Trading of TFS Financial

Several large investors have recently added to or reduced their stakes in TFSL. Bank of America Corp DE boosted its stake in TFS Financial by 27.1% during the 1st quarter. Bank of America Corp DE now owns 1,009,309 shares of the bank's stock valued at $14,181,000 after purchasing an additional 215,491 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in TFS Financial by 45.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,706 shares of the bank's stock valued at $38,000 after purchasing an additional 841 shares in the last quarter. Royal Bank of Canada boosted its stake in TFS Financial by 1,237.7% during the 1st quarter. Royal Bank of Canada now owns 9,658 shares of the bank's stock valued at $136,000 after purchasing an additional 8,936 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in TFS Financial by 11.3% during the 1st quarter. The Manufacturers Life Insurance Company now owns 14,245 shares of the bank's stock valued at $200,000 after purchasing an additional 1,451 shares in the last quarter. Finally, Quantinno Capital Management LP boosted its stake in TFS Financial by 53.0% during the 1st quarter. Quantinno Capital Management LP now owns 405,322 shares of the bank's stock valued at $5,695,000 after purchasing an additional 140,376 shares in the last quarter. 9.81% of the stock is currently owned by institutional investors and hedge funds.

TFS Financial Company Profile

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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