According to Zacks, “SunTrust’s cost saving strategies has borne positive results as it continues to witness a downward trend in expenses. Further, the company remains well positioned for future growth given its improving credit quality. Also, the gradually stabilizing energy sector as well as economic recovery will aid the company’s credit quality. Moreover, the company's steady capital deployment activities enhance shareholder value. However, a persistent low interest rate scenario continues to put margins under pressure. Also, exposure to risky assets and increasing dependence on residential and commercial loan portfolio is expected to weigh on the company’s profitability in the near term.”
Several other analysts have also recently commented on the company. Sanford C. Bernstein cut SunTrust Banks from an outperform rating to a market perform rating and set a $43.00 target price for the company. in a research report on Tuesday, August 16th. They noted that the move was a valuation call. Wells Fargo & Co. reissued a buy rating on shares of SunTrust Banks in a research report on Sunday, July 10th. Robert W. Baird cut SunTrust Banks from a neutral rating to an underperform rating and reduced their price objective for the company from $43.00 to $41.00 in a research report on Friday, July 15th. Barclays PLC reissued an equal weight rating and set a $46.00 price objective on shares of SunTrust Banks in a research report on Sunday, July 10th. Finally, Credit Suisse Group AG reissued a sell rating on shares of SunTrust Banks in a research report on Tuesday, July 12th. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the stock. SunTrust Banks has a consensus rating of Buy and an average target price of $44.45.
SunTrust Banks (NYSE:STI) opened at 43.15 on Monday. The firm has a market capitalization of $21.63 billion, a price-to-earnings ratio of 11.68 and a beta of 1.31. SunTrust Banks has a 1-year low of $31.07 and a 1-year high of $45.24. The company has a 50-day moving average price of $43.32 and a 200 day moving average price of $41.36.
SunTrust Banks (NYSE:STI) last issued its earnings results on Friday, July 22nd. The financial services provider reported $0.94 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.88 by $0.06. The business earned $2.19 billion during the quarter, compared to analysts’ expectations of $2.14 billion. SunTrust Banks had a return on equity of 8.53% and a net margin of 22.31%. SunTrust Banks’s revenue was up 6.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.89 earnings per share. Equities analysts anticipate that SunTrust Banks will post $3.51 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were issued a $0.26 dividend. This is an increase from SunTrust Banks’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a dividend yield of 2.41%. The ex-dividend date of this dividend was Monday, August 29th. SunTrust Banks’s payout ratio is presently 28.18%.
In other news, insider Susan S. Johnson sold 1,118 shares of the business’s stock in a transaction that occurred on Tuesday, July 26th. The stock was sold at an average price of $42.40, for a total value of $47,403.20. Following the transaction, the insider now directly owns 1,119 shares of the company’s stock, valued at approximately $47,445.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.67% of the stock is owned by insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Capital Management Corp VA increased its position in shares of SunTrust Banks by 0.6% in the second quarter. Capital Management Corp VA now owns 8,013 shares of the financial services provider’s stock valued at $329,000 after buying an additional 45 shares during the last quarter. Dixon Hubard Feinour & Brown Inc. VA increased its position in shares of SunTrust Banks by 0.6% in the first quarter. Dixon Hubard Feinour & Brown Inc. VA now owns 10,925 shares of the financial services provider’s stock valued at $456,000 after buying an additional 64 shares during the last quarter. Canal Capital Management LLC increased its position in shares of SunTrust Banks by 1.2% in the second quarter. Canal Capital Management LLC now owns 5,921 shares of the financial services provider’s stock valued at $243,000 after buying an additional 70 shares during the last quarter. Pitcairn Co. increased its position in shares of SunTrust Banks by 0.7% in the second quarter. Pitcairn Co. now owns 9,813 shares of the financial services provider’s stock valued at $403,000 after buying an additional 72 shares during the last quarter. Finally, Washington Trust Bank increased its position in shares of SunTrust Banks by 2.1% in the second quarter. Washington Trust Bank now owns 4,420 shares of the financial services provider’s stock valued at $182,000 after buying an additional 90 shares during the last quarter. 82.37% of the stock is currently owned by institutional investors and hedge funds.
SunTrust Banks Company Profile
SunTrust Banks, Inc is a bank holding company and a financial holding company. Through its principal subsidiary, SunTrust Bank, the Company offers a line of financial services for consumers and businesses, including deposit, credit, mortgage banking, and trust and investment services. The Company’s other subsidiaries provide asset and wealth management, securities brokerage, and capital market services.
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