Truist Financial Corporation [NYSE: TFC] gained 4.21% or 2.23 points to close at $55.21 with a heavy trading volume of 5172340 shares. The company report on June 29, 2021 that Truist announces planned dividend increase and reduced stress capital buffer following release of 2021 CCAR results.
Truist Financial Corporation (NYSE: TFC) announced a planned 7% increase in the regular quarterly common dividend from $0.45 per share to $0.48 per share, following the completion of the 2021 Comprehensive Capital Analysis and Review (CCAR) process. This increase would take effect in the third quarter of 2021. Truist’s dividends are subject to approval by its board of directors, and the third quarter dividend will be considered by the Truist board at its upcoming meeting.
Truist also announced that the Federal Reserve Board reduced the preliminary stress capital buffer (SCB) to which Truist will be subject from 2.7% to 2.5%. The new preliminary SCB is in effect from Oct. 1, 2021 to Sept. 30, 2022, and reflects Truist’s prudent risk management and sound financial performance under stressful conditions.
It opened the trading session at $54.22, the shares rose to $55.28 and dropped to $53.72, the range by which the price of stock traded the whole day. The daily chart for TFC points out that the company has recorded 7.22% gains over the past six months. However, it is still -64.95% lower than its most recent low trading price.
If we look at the average trading volume of 5.62M shares, TFC reached to a volume of 5172340 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Truist Financial Corporation [TFC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TFC shares is $65.31 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TFC stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Keefe Bruyette have made an estimate for Truist Financial Corporation shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on July 07, 2021. The new note on the price target was released on May 10, 2021, representing the official price target for Truist Financial Corporation stock. Previously, the target price had yet another raise to $53, while Robert W. Baird analysts kept a Neutral rating on TFC stock. On January 07, 2021, analysts increased their price target for TFC shares from 48 to 55.
The Average True Range (ATR) for Truist Financial Corporation is set at 1.33, with the Price to Sales ratio for TFC stock in the period of the last 12 months amounting to 4.87. The Price to Book ratio for the last quarter was 1.22, with the Price to Cash per share for the same quarter was set at 32.25.
Trading performance analysis for TFC stock
Truist Financial Corporation [TFC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.94. With this latest performance, TFC shares dropped by -5.54% in over the last four-week period, additionally plugging by 7.22% over the last 6 months – not to mention a rise of 64.27% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TFC stock in for the last two-week period is set at 45.63, with the RSI for the last a single of trading hit 48.47, and the three-weeks RSI is set at 45.01 for Truist Financial Corporation [TFC]. The present Moving Average for the last 50 days of trading for this stock 58.42, while it was recorded at 54.46 for the last single week of trading, and 52.45 for the last 200 days.
Truist Financial Corporation [TFC]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Truist Financial Corporation [TFC] shares currently have an operating margin of +27.20. Truist Financial Corporation’s Net Margin is presently recorded at +18.56.
Return on Total Capital for TFC is now 5.32, given the latest momentum, and Return on Invested Capital for the company is 4.28. Return on Equity for this stock inclined to 6.53, with Return on Assets sitting at 0.91. When it comes to the capital structure of this company, Truist Financial Corporation [TFC] has a Total Debt to Total Equity ratio set at 67.20. Additionally, TFC Total Debt to Total Capital is recorded at 40.19, with Total Debt to Total Assets ending up at 9.28. Long-Term Debt to Equity for the company is recorded at 56.98, with the Long-Term Debt to Total Capital now at 30.20.
Truist Financial Corporation [TFC]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TFC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Truist Financial Corporation go to 8.90%.
An analysis of insider ownership at Truist Financial Corporation [TFC]
There are presently around $54,265 million, or 74.40% of TFC stock, in the hands of institutional investors. The top three institutional holders of TFC stocks are: VANGUARD GROUP INC with ownership of 106,962,328, which is approximately 0.988% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 93,117,875 shares of the stock with an approximate value of $5.14 billion in TFC stocks shares; and STATE STREET CORP, currently with $3.42 billion in TFC stock with ownership of nearly 5.996% of the company’s market capitalization.
Positions in Truist Financial Corporation stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 692 institutional holders increased their position in Truist Financial Corporation [NYSE:TFC] by around 62,919,094 shares. Additionally, 541 investors decreased positions by around 59,617,218 shares, while 191 investors held positions by with 860,341,071 shares. The mentioned changes placed institutional holdings at 982,877,383 shares, according to the latest SEC report filing. TFC stock had 144 new institutional investments in for a total of 6,653,427 shares, while 66 institutional investors sold positions of 1,525,827 shares during the same period.