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Truist Financial (NYSE:TFC) Trading Up 3.8% After Earnings Beat

Truist Financial logo with Finance background

Key Points

  • Truist Financial's stock rose 3.8% after reporting earnings of $1.04 per share, beating the consensus estimate of $0.99.
  • The company announced a $0.52 quarterly dividend, which represents an annualized dividend of $2.08 with a yield of 4.9%.
  • Research analysts currently rate Truist Financial as a with a consensus target price of $48.89.
  • MarketBeat previews top five stocks to own in November.

Truist Financial Corporation (NYSE:TFC - Get Free Report)'s stock price rose 3.8% during trading on Friday following a better than expected earnings announcement. The stock traded as high as $42.83 and last traded at $42.64. Approximately 5,630,715 shares were traded during trading, a decline of 33% from the average daily volume of 8,396,750 shares. The stock had previously closed at $41.09.

The insurance provider reported $1.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.99 by $0.05. The company had revenue of $5.24 billion during the quarter, compared to analysts' expectations of $5.20 billion. Truist Financial had a return on equity of 8.69% and a net margin of 16.82%.The company's revenue for the quarter was up 1.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.97 earnings per share. Truist Financial has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS.

Truist Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Shareholders of record on Friday, August 8th were paid a dividend of $0.52 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $2.08 annualized dividend and a yield of 4.9%. Truist Financial's dividend payout ratio (DPR) is presently 56.68%.

Wall Street Analyst Weigh In

TFC has been the subject of a number of research analyst reports. Raymond James Financial reaffirmed an "outperform" rating on shares of Truist Financial in a research note on Tuesday, October 7th. Keefe, Bruyette & Woods downgraded Truist Financial from an "outperform" rating to a "market perform" rating and set a $48.00 target price for the company. in a research report on Wednesday, July 9th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Truist Financial in a research note on Wednesday, October 8th. Evercore ISI boosted their price objective on Truist Financial from $48.00 to $50.00 and gave the stock an "in-line" rating in a research note on Tuesday, September 30th. Finally, Morgan Stanley upped their price objective on Truist Financial from $48.00 to $54.00 and gave the company an "equal weight" rating in a report on Monday, September 29th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, Truist Financial currently has a consensus rating of "Moderate Buy" and a consensus target price of $48.89.

Check Out Our Latest Stock Analysis on TFC

Insider Activity

In other news, insider Bradley D. Bender sold 12,540 shares of the company's stock in a transaction on Tuesday, July 22nd. The stock was sold at an average price of $45.19, for a total transaction of $566,682.60. Following the completion of the sale, the insider directly owned 500 shares of the company's stock, valued at $22,595. This represents a 96.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.17% of the stock is owned by company insiders.

Institutional Trading of Truist Financial

Hedge funds have recently bought and sold shares of the company. Foster Victor Wealth Advisors LLC increased its stake in shares of Truist Financial by 0.4% during the second quarter. Foster Victor Wealth Advisors LLC now owns 62,087 shares of the insurance provider's stock worth $2,804,000 after acquiring an additional 242 shares during the period. MGO One Seven LLC raised its holdings in Truist Financial by 0.9% during the second quarter. MGO One Seven LLC now owns 28,849 shares of the insurance provider's stock worth $1,240,000 after purchasing an additional 246 shares in the last quarter. Klingman & Associates LLC lifted its position in Truist Financial by 2.2% in the first quarter. Klingman & Associates LLC now owns 11,756 shares of the insurance provider's stock valued at $484,000 after purchasing an additional 248 shares during the period. Legacy Wealth Asset Management LLC lifted its position in Truist Financial by 1.6% in the third quarter. Legacy Wealth Asset Management LLC now owns 16,718 shares of the insurance provider's stock valued at $764,000 after purchasing an additional 261 shares during the period. Finally, Haverford Trust Co boosted its holdings in Truist Financial by 3.5% in the 1st quarter. Haverford Trust Co now owns 7,751 shares of the insurance provider's stock valued at $319,000 after purchasing an additional 262 shares in the last quarter. 71.28% of the stock is owned by hedge funds and other institutional investors.

Truist Financial Price Performance

The company has a debt-to-equity ratio of 0.75, a quick ratio of 0.86 and a current ratio of 0.86. The company has a 50-day simple moving average of $45.12 and a 200-day simple moving average of $42.21. The company has a market cap of $54.96 billion, a price-to-earnings ratio of 11.63, a PEG ratio of 1.38 and a beta of 0.88.

Truist Financial Company Profile

(Get Free Report)

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings.Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts.

See Also

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