Is Truist Financial Corporation (TFC) A Risky Investment?

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Truist Financial Corporation (NYSE:TFC) finished Thursday with an addition of $0.65 to close at $43.20, an upside of 1.53 percent. An average of 5,079,460 shares of common stock have been traded in the last five days. There was a gain of $1.45 in the past week, and it reached a new high 11 times over the past 12 months. The last 20 days have seen an average of 8,861,955 shares traded, while the 50-day average volume stands at 7,676,998.

TFC stock has decreased by -5.90% in the last month. The company shares reached their 1-month lowest point of $40.54 on 12/16/22. With the stock rallying to its 52-week high on 01/18/22, shares of the company touched a low of $40.01 and a high of $68.95 in 52 weeks. It has reached a new high 10 times so far this year and lost -26.22% or -$15.35 in price. In spite of this, the price is down -37.35% from the 52-week high.


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Insider Transactions

TFC stock investors should be aware that Truist Financial Corporation (TFC) stock had its last reported insider trading activity 163 days ago on Jul 20. In this transaction, the insider spent $6,813,429. Director, KING KELLY S, disposed of 29 shares at a price of $52.55 on Apr 21. The insider now owns more than $1,508 worth of shares. Prior to that, Director KING KELLY S went on to Sale 1 shares at $52.01 each on Apr 20. An amount of $30 was transacted.

Valuation Metrics

Truist Financial Corporation (TFC) has a trailing price-to-earnings (P/E) ratio of 9.91. The stock’s beta is 1.08. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.86, the price-to-book (PB) ratio at 1.06.

The company has a payout ratio of 44.60%. The company’s most recent quarterly dividend payment was $0.52 a share, without any change from last year. Its latest increase dividend $0.04 reported on Tuesday July 26 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.58 and a total debt to equity ratio of 0.58 for the quarter ending September 29. Its gross profit as reported stood at $13.01 billion compared to revenue of $13.77 billion.

Earnings Surprise

For the three-month period that ended September 29, Truist Financial Corporation had $30.32 billion in total debt. The analyst consensus anticipated Truist Financial Corporation’s latest quarter earnings to come in at $1.24 per share, but it turned out to be $1.24, a 0.00% surprise. At the end of the quarter ending September 29, Truist Financial Corporation’s stock balance sheet showed total debt was $56.86 billion. Shareholders own equity worth $1.33 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Truist Financial Corporation (TFC) price momentum. RSI 9-day as of the close on 29 December was 56.09%, suggesting the stock is Neutral, with historical volatility in this time frame at 13.59%.

As of today, TFC’s price is $42.73 +3.47% or $1.45 from its 5-day moving average. TFC is currently trading -7.71% lower than its 20-day SMA and -13.17% lower than its 100-day SMA. However, the stock’s current price level is -0.39% below the SMA50 and -25.54% below the SMA200.

The stochastic %K and %D were 51.69% and 48.77%, respectively, and the average true range (ATR) was 0.98. With the 14-day stochastic at 59.20% and the average true range at 1.08, the RSI (14) stands at 50.71%. The stock has reached 0.76 on the 9-day MACD Oscillator while the 14-day reading was at 0.62.

Analyst Ratings

Evercore ISI downgraded Truist Financial Corporation (NYSE: TFC) to a an In-line rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Truist Financial Corporation (TFC) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell TFC, while 13 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 9 others rate it as a “buy”.

What is TFC’s price target for the next 12 months?

Analysts predict a range of price targets between $42.00 and $64.00, with a median target of $52.50. Taking a look at these predictions, the average price target given by analysts for Truist Financial Corporation (TFC) stock is $52.32.

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