SunTrust Banks, Inc. (STI) Upgraded to Buy by Zacks Investment Research

Zacks Investment Research upgraded shares of SunTrust Banks, Inc. (NYSE:STI) from a hold rating to a buy rating in a research note published on Tuesday. Zacks Investment Research currently has $68.00 price target on the financial services provider’s stock.

According to Zacks, “SunTrust’s shares have outperformed the industry over the past three months. Also, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Easing margin pressure, rise in loan demand, initiatives to enhance revenue growth and improve efficiency as well as expected rise in lending activates (owing to the potential lesser regulations) should support the company’s profitability. Also, impressive capital deployment activities reflect strong capital position. However, its significant exposure to commercial and residential loan portfolios, and expectations of weaker mortgage business make us apprehensive.”

STI has been the subject of several other research reports. Robert W. Baird reaffirmed a hold rating and issued a $55.00 target price on shares of SunTrust Banks in a report on Friday, August 25th. Credit Suisse Group raised shares of SunTrust Banks from an underperform rating to a neutral rating and increased their price objective for the company from $56.00 to $60.00 in a report on Monday. Morgan Stanley raised shares of SunTrust Banks from an underweight rating to an equal weight rating and set a $63.00 price objective for the company in a report on Thursday, August 3rd. UBS AG reissued a neutral rating and set a $62.00 price objective (up previously from $61.00) on shares of SunTrust Banks in a report on Friday, October 6th. Finally, Wells Fargo & Company started coverage on shares of SunTrust Banks in a report on Wednesday, August 9th. They set an outperform rating and a $70.00 price objective for the company. Sixteen analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The company has an average rating of Hold and a consensus target price of $62.18.

Shares of SunTrust Banks (NYSE STI) opened at 60.16 on Tuesday. SunTrust Banks has a 12 month low of $44.25 and a 12 month high of $61.69. The company has a 50 day moving average price of $56.74 and a 200-day moving average price of $56.22. The stock has a market cap of $28.98 billion, a P/E ratio of 16.00 and a beta of 1.31.

SunTrust Banks (NYSE:STI) last issued its earnings results on Friday, July 21st. The financial services provider reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.05. The company had revenue of $2.23 billion during the quarter, compared to the consensus estimate of $2.29 billion. SunTrust Banks had a net margin of 20.51% and a return on equity of 8.48%. SunTrust Banks’s quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.94 EPS. On average, equities research analysts predict that SunTrust Banks will post $4.05 earnings per share for the current year.

COPYRIGHT VIOLATION WARNING: “SunTrust Banks, Inc. (STI) Upgraded to Buy by Zacks Investment Research” was originally reported by The Ledger Gazette and is the property of of The Ledger Gazette. If you are viewing this report on another domain, it was illegally copied and republished in violation of U.S. & international trademark & copyright law. The legal version of this report can be read at https://ledgergazette.com/2017/10/11/suntrust-banks-inc-sti-upgraded-to-buy-by-zacks-investment-research.html.

The firm also recently announced a quarterly dividend, which was paid on Friday, September 15th. Stockholders of record on Thursday, August 31st were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.63%. This is a boost from SunTrust Banks’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Tuesday, August 29th. SunTrust Banks’s dividend payout ratio is currently 42.67%.

SunTrust Banks announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 28th that allows the company to buyback $1.32 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 4.9% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

In other news, insider Susan S. Johnson sold 808 shares of the company’s stock in a transaction dated Monday, August 14th. The shares were sold at an average price of $57.34, for a total transaction of $46,330.72. Following the sale, the insider now directly owns 3,515 shares in the company, valued at approximately $201,550.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.55% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Guardian Life Insurance Co. of America raised its position in shares of SunTrust Banks by 1.0% during the 1st quarter. Guardian Life Insurance Co. of America now owns 1,893 shares of the financial services provider’s stock valued at $105,000 after buying an additional 18 shares in the last quarter. Fiduciary Trust Co. purchased a new stake in shares of SunTrust Banks during the 2nd quarter valued at about $118,000. Advisory Services Network LLC raised its position in shares of SunTrust Banks by 0.9% during the 2nd quarter. Advisory Services Network LLC now owns 2,140 shares of the financial services provider’s stock valued at $121,000 after buying an additional 20 shares in the last quarter. Westwood Holdings Group Inc. purchased a new stake in shares of SunTrust Banks during the 2nd quarter valued at about $136,000. Finally, Independent Portfolio Consultants Inc. raised its position in shares of SunTrust Banks by 184.7% during the 2nd quarter. Independent Portfolio Consultants Inc. now owns 2,648 shares of the financial services provider’s stock valued at $150,000 after buying an additional 1,718 shares in the last quarter. Hedge funds and other institutional investors own 81.18% of the company’s stock.

SunTrust Banks Company Profile

SunTrust Banks, Inc is a provider of financial services. The Company’s principal subsidiary is SunTrust Bank (the Bank). The Company’s business segments include Consumer Banking and Private Wealth Ma

According to Zacks, “SunTrust’s shares have outperformed the industry over the past three months. Also, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Easing margin pressure, rise in loan demand, initiatives to enhance revenue growth and improve efficiency as well as expected rise in lending activates (owing to the potential lesser regulations) should support the company’s profitability. Also, impressive capital deployment activities reflect strong capital position. However, its significant exposure to commercial and residential loan portfolios, and expectations of weaker mortgage business make us apprehensive.”

STI has been the subject of several other research reports. Robert W. Baird reaffirmed a hold rating and issued a $55.00 target price on shares of SunTrust Banks in a report on Friday, August 25th. Credit Suisse Group raised shares of SunTrust Banks from an underperform rating to a neutral rating and increased their price objective for the company from $56.00 to $60.00 in a report on Monday. Morgan Stanley raised shares of SunTrust Banks from an underweight rating to an equal weight rating and set a $63.00 price objective for the company in a report on Thursday, August 3rd. UBS AG reissued a neutral rating and set a $62.00 price objective (up previously from $61.00) on shares of SunTrust Banks in a report on Friday, October 6th. Finally, Wells Fargo & Company started coverage on shares of SunTrust Banks in a report on Wednesday, August 9th. They set an outperform rating and a $70.00 price objective for the company. Sixteen analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The company has an average rating of Hold and a consensus target price of $62.18.

Shares of SunTrust Banks (NYSE STI) opened at 60.16 on Tuesday. SunTrust Banks has a 12 month low of $44.25 and a 12 month high of $61.69. The company has a 50 day moving average price of $56.74 and a 200-day moving average price of $56.22. The stock has a market cap of $28.98 billion, a P/E ratio of 16.00 and a beta of 1.31.

SunTrust Banks (NYSE:STI) last issued its earnings results on Friday, July 21st. The financial services provider reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.05. The company had revenue of $2.23 billion during the quarter, compared to the consensus estimate of $2.29 billion. SunTrust Banks had a net margin of 20.51% and a return on equity of 8.48%. SunTrust Banks’s quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.94 EPS. On average, equities research analysts predict that SunTrust Banks will post $4.05 earnings per share for the current year.

COPYRIGHT VIOLATION WARNING: “SunTrust Banks, Inc. (STI) Upgraded to Buy by Zacks Investment Research” was originally reported by The Ledger Gazette and is the property of of The Ledger Gazette. If you are viewing this report on another domain, it was illegally copied and republished in violation of U.S. & international trademark & copyright law. The legal version of this report can be read at https://ledgergazette.com/2017/10/11/suntrust-banks-inc-sti-upgraded-to-buy-by-zacks-investment-research.html.

The firm also recently announced a quarterly dividend, which was paid on Friday, September 15th. Stockholders of record on Thursday, August 31st were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 2.63%. This is a boost from SunTrust Banks’s previous quarterly dividend of $0.26. The ex-dividend date of this dividend was Tuesday, August 29th. SunTrust Banks’s dividend payout ratio is currently 42.67%.

SunTrust Banks announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, June 28th that allows the company to buyback $1.32 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 4.9% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s management believes its shares are undervalued.

In other news, insider Susan S. Johnson sold 808 shares of the company’s stock in a transaction dated Monday, August 14th. The shares were sold at an average price of $57.34, for a total transaction of $46,330.72. Following the sale, the insider now directly owns 3,515 shares in the company, valued at approximately $201,550.10. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.55% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Guardian Life Insurance Co. of America raised its position in shares of SunTrust Banks by 1.0% during the 1st quarter. Guardian Life Insurance Co. of America now owns 1,893 shares of the financial services provider’s stock valued at $105,000 after buying an additional 18 shares in the last quarter. Fiduciary Trust Co. purchased a new stake in shares of SunTrust Banks during the 2nd quarter valued at about $118,000. Advisory Services Network LLC raised its position in shares of SunTrust Banks by 0.9% during the 2nd quarter. Advisory Services Network LLC now owns 2,140 shares of the financial services provider’s stock valued at $121,000 after buying an additional 20 shares in the last quarter. Westwood Holdings Group Inc. purchased a new stake in shares of SunTrust Banks during the 2nd quarter valued at about $136,000. Finally, Independent Portfolio Consultants Inc. raised its position in shares of SunTrust Banks by 184.7% during the 2nd quarter. Independent Portfolio Consultants Inc. now owns 2,648 shares of the financial services provider’s stock valued at $150,000 after buying an additional 1,718 shares in the last quarter. Hedge funds and other institutional investors own 81.18% of the company’s stock.

SunTrust Banks Company Profile

SunTrust Banks, Inc is a provider of financial services. The Company’s principal subsidiary is SunTrust Bank (the Bank). The Company’s business segments include Consumer Banking and Private Wealth Management, Wholesale Banking, Mortgage Banking and Corporate Other. As of December 31, 2016, the Consumer Banking and Private Wealth Management segment consisted of three primary businesses: Consumer Banking, Consumer Lending and Private Wealth Management.

Analyst Recommendations for SunTrust Banks (NYSE:STI)

Receive News & Ratings for SunTrust Banks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SunTrust Banks Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply