TFS Financial (NASDAQ:TFSL) Stock Price Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• TFS Financial shares climbed above their 200-day moving average ($14.00), trading as high as $15.17 and last at $15.05 on volume of about 750,702 shares — a short-term technical bullish signal.
• The company pays a quarterly dividend of $0.2825 (annualized $1.13) for a 7.5% yield, but the dividend payout ratio is an unsustainably high 353% and the most recent quarter missed EPS and revenue estimates.
• Analysts are mixed with a consensus “Hold” and $15.00 average price target, while insider activity was mixed—one director bought 5,000 shares at $13.37 but insiders sold 78,000 shares last quarter.

TFS Financial Corporation (NASDAQ:TFSL - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $14.00 and traded as high as $15.17. TFS Financial shares last traded at $15.05, with a volume of 750,702 shares changing hands.

Wall Street Analyst Weigh In

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

TFS Financial Stock Up 0.4%

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 stock has a market cap of $4.22 billion, a P/E ratio of 47.03 and a beta of 0.68. The firm has a 50-day simple moving average of $14.26 and a two-hundred day simple moving average of $14.00.

TFS Financial (NASDAQ:TFSL - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The bank reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.01). The firm had revenue of $83.73 million for the quarter, compared to the consensus estimate of $84.97 million. TFS Financial had a return on equity of 4.79% and a net margin of 11.29%. Equities research analysts expect that TFS Financial Corporation will post 0.33 earnings per share for the current fiscal year.

TFS Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 11th were issued 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 353.13%.

Insider Activity at TFS Financial

In related news, Director Anthony J. Asher bought 5,000 shares of TFS Financial stock in a transaction dated Thursday, March 12th. The shares were bought at an average cost of $13.37 per share, with a total value of $66,850.00. Following the acquisition, the director owned 49,314 shares in the company, valued at $659,328.18. This trade represents a 11.28% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Barbara J. Anderson sold 11,000 shares of the stock in a transaction on Tuesday, February 3rd. The stock was sold at an average price of $14.21, for a total value of $156,310.00. Following the sale, the director directly owned 6,200 shares in the company, valued at approximately $88,102. This trade 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 a total of 78,000 shares of company stock worth $1,164,986 in the last quarter. 0.72% of the stock is currently owned by corporate insiders.

Institutional Trading of TFS Financial

Several large investors have recently bought and sold shares of TFSL. Gator Capital Management LLC bought a new position in shares of TFS Financial during the fourth quarter worth about $6,290,000. Lakewood Capital Management LP boosted its holdings in TFS Financial by 19.9% in the third quarter. Lakewood Capital Management LP now owns 2,533,382 shares of the bank's stock valued at $33,377,000 after acquiring an additional 420,000 shares during the last quarter. Norges Bank acquired a new stake in TFS Financial during the 4th quarter valued at approximately $5,248,000. State Street Corp raised its holdings in TFS Financial by 24.6% during the 4th quarter. State Street Corp now owns 1,966,004 shares of the bank's stock worth $26,305,000 after purchasing an additional 387,992 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in TFS Financial by 23.2% during the 4th quarter. Bank of New York Mellon Corp now owns 1,869,302 shares of the bank's stock worth $25,011,000 after purchasing an additional 352,093 shares during 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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