SunTrust Banks Inc. (NYSE:STI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “SunTrust shares have substantially outperformed the Zacks categorized Major Regional Banks industry over the last three months. Its initiatives to enhance revenues through growth in loan and deposit balances are impressive. In Oct 2016, the company announced a deal to buy Pillar Financial, which is likely to improve Wholesale Banking segment revenue by $90 million in 2017. Also, the gradually stabilizing energy sector will aid the company’s credit quality in the near term. However, significant exposure to risky loan portfolios and stringent regulatory requirements are major cause of concerns. Further, pressure on margin is expected to continue in absence of notable rate hike.”
Several other equities research analysts have also issued reports on the stock. Compass Point lowered shares of SunTrust Banks from a “buy” rating to a “neutral” rating and increased their target price for the stock from $48.00 to $54.00 in a research note on Wednesday, November 23rd. They noted that the move was a valuation call. Robert W. Baird reissued an “underperform” rating on shares of SunTrust Banks in a research note on Saturday, November 19th. Wells Fargo & Co. lowered shares of SunTrust Banks from an “outperform” rating to a “market perform” rating in a research note on Friday, November 18th. Standpoint Research lowered shares of SunTrust Banks from a “buy” rating to a “hold” rating in a research note on Tuesday, November 15th. Finally, Morgan Stanley lowered shares of SunTrust Banks from an “equal weight” rating to an “underweight” rating and set a $53.00 target price on the stock. in a research note on Monday, November 14th. They noted that the move was a valuation call. Three analysts have rated the stock with a sell rating, twelve have given a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $46.13.
Shares of SunTrust Banks (NYSE:STI) traded down 0.910% during midday trading on Monday, hitting $51.725. The stock had a trading volume of 2,727,777 shares. SunTrust Banks has a 52-week low of $31.07 and a 52-week high of $52.65. The stock has a market cap of $25.65 billion, a PE ratio of 14.328 and a beta of 1.36. The firm has a 50 day moving average price of $47.46 and a 200-day moving average price of $43.85.
SunTrust Banks (NYSE:STI) last announced its quarterly earnings results on Friday, October 21st. The financial services provider reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.03. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.15 billion. SunTrust Banks had a return on equity of 8.18% and a net margin of 21.12%. The firm’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same period last year, the firm earned $1.00 EPS. Equities analysts predict that SunTrust Banks will post $3.57 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Wednesday, November 30th will be paid a $0.26 dividend. The ex-dividend date of this dividend is Monday, November 28th. This represents a $1.04 annualized dividend and a dividend yield of 1.99%. SunTrust Banks’s dividend payout ratio (DPR) is 28.89%.
In other news, insider Susan S. Johnson sold 794 shares of SunTrust Banks stock in a transaction on Monday, October 24th. The shares were sold at an average price of $45.58, for a total transaction of $36,190.52. Following the completion of the sale, the insider now directly owns 1,947 shares of the company’s stock, valued at approximately $88,744.26. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Anil T. Cheriyan sold 8,000 shares of SunTrust Banks stock in a transaction on Tuesday, November 22nd. The stock was sold at an average price of $52.15, for a total transaction of $417,200.00. Following the sale, the insider now directly owns 81,203 shares of the company’s stock, valued at $4,234,736.45. The disclosure for this sale can be found here. 0.67% of the stock is currently owned by company insiders.
Several large investors have recently added to or reduced their stakes in STI. Global X Management Co. LLC boosted its stake in SunTrust Banks by 121.2% in the third quarter. Global X Management Co. LLC now owns 2,787 shares of the financial services provider’s stock valued at $122,000 after buying an additional 1,527 shares during the period. AXA purchased a new stake in SunTrust Banks during the second quarter valued at about $127,000. TLP Group LLC purchased a new stake in SunTrust Banks during the third quarter valued at about $128,000. Amica Retiree Medical Trust purchased a new stake in SunTrust Banks during the second quarter valued at about $129,000. Finally, MSI Financial Services Inc boosted its stake in SunTrust Banks by 66.2% in the third quarter. MSI Financial Services Inc now owns 3,010 shares of the financial services provider’s stock valued at $132,000 after buying an additional 1,199 shares during the period. 81.23% of the stock is 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.