SunTrust Banks Inc. (STI) Downgraded by Zacks Investment Research to Hold
According to Zacks, “SunTrust’s third-quarter 2016 earnings surpassed the Zacks Consensus Estimate, reflecting an improved top line, partly offset by higher operating expenses. The company’s 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. However, continued pressure on margins amid the low rate environment remains a major concern for the company. Further, though the housing sector has been improving, the company’s significant exposure to commercial and residential loan portfolios are expected to pose risks for it in the near term.”
A number of other equities analysts also recently issued reports on the company. Goldman Sachs Group Inc. downgraded SunTrust Banks from a conviction-buy rating to a buy rating and increased their price target for the stock from $44.00 to $46.00 in a research report on Monday, July 25th. Sanford C. Bernstein cut SunTrust Banks from an outperform rating to a market perform rating and set a $43.00 price objective for the company. in a research note on Tuesday, August 16th. They noted that the move was a valuation call. Wedbush initiated coverage on SunTrust Banks in a research note on Thursday, October 6th. They set a neutral rating and a $47.00 price objective for the company. Robert W. Baird restated an underperform rating on shares of SunTrust Banks in a research note on Thursday, August 4th. Finally, Barclays PLC restated a hold rating and set a $49.00 price objective on shares of SunTrust Banks in a research note on Monday, November 7th. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of Hold and an average price target of $45.87.
Shares of SunTrust Banks (NYSE:STI) opened at 51.72 on Monday. The firm’s 50 day moving average price is $46.78 and its 200-day moving average price is $43.62. SunTrust Banks has a 1-year low of $31.07 and a 1-year high of $52.65. The company has a market capitalization of $25.65 billion, a P/E ratio of 14.33 and a beta of 1.36.
SunTrust Banks (NYSE:STI) last posted its quarterly earnings results on Friday, October 21st. The financial services provider reported $0.91 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.88 by $0.03. SunTrust Banks had a return on equity of 8.18% and a net margin of 21.12%. The business had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.15 billion. During the same quarter in the prior year, the company earned $1.00 EPS. The business’s revenue was up 8.4% compared to the same quarter last year. Analysts expect that SunTrust Banks will post $3.56 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Shareholders of record on Wednesday, November 30th will be given a $0.26 dividend. The ex-dividend date of this dividend is Monday, November 28th. This represents a $1.04 dividend on an annualized basis and a yield of 2.01%. SunTrust Banks’s dividend payout ratio is currently 28.89%.
In other SunTrust Banks news, insider Aleem Gillani sold 8,583 shares of SunTrust Banks stock in a transaction on Thursday, October 27th. The stock was sold at an average price of $45.90, for a total value of $393,959.70. Following the sale, the insider now owns 239,652 shares in the company, valued at $11,000,026.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Thomas E. Panther sold 1,200 shares of SunTrust Banks stock in a transaction on Wednesday, November 16th. The shares were sold at an average price of $51.69, for a total value of $62,028.00. Following the completion of the sale, the senior vice president now owns 19,122 shares in the company, valued at approximately $988,416.18. The disclosure for this sale can be found here. 0.67% of the stock is owned by company insiders.
Large investors have recently bought and sold shares of the stock. Piedmont Investment Advisors LLC acquired a new stake in SunTrust Banks during the third quarter worth approximately $2,205,000. Credit Suisse AG boosted its stake in shares of SunTrust Banks by 151.1% in the third quarter. Credit Suisse AG now owns 3,446,948 shares of the financial services provider’s stock worth $150,976,000 after buying an additional 2,074,075 shares during the last quarter. Ameritas Investment Partners Inc. boosted its stake in shares of SunTrust Banks by 21.0% in the third quarter. Ameritas Investment Partners Inc. now owns 11,987 shares of the financial services provider’s stock worth $525,000 after buying an additional 2,080 shares during the last quarter. Lombard Odier Asset Management Europe Ltd purchased a new stake in shares of SunTrust Banks during the third quarter worth $370,000. Finally, Cetera Advisor Networks LLC boosted its stake in shares of SunTrust Banks by 70.3% in the third quarter. Cetera Advisor Networks LLC now owns 11,851 shares of the financial services provider’s stock worth $519,000 after buying an additional 4,892 shares during the last quarter. Institutional investors own 83.93% of the company’s stock.
About SunTrust Banks
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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