SunTrust Banks, Inc. (STI) Announces Quarterly Dividend of $0.40
SunTrust Banks, Inc. (NYSE:STI) announced a quarterly dividend on Tuesday, August 8th, RTT News reports. Stockholders of record on Thursday, August 31st will be paid a dividend of 0.40 per share by the financial services provider on Friday, September 15th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.76%. This is a positive change from SunTrust Banks’s previous quarterly dividend of $0.26.
SunTrust Banks has raised its dividend by an average of 41.9% annually over the last three years and has increased its dividend annually for the last 4 consecutive years. SunTrust Banks has a dividend payout ratio of 25.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect SunTrust Banks to earn $4.44 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 23.4%.
Shares of SunTrust Banks (STI) traded down 0.02% during mid-day trading on Tuesday, hitting $58.05. The stock had a trading volume of 2,962,029 shares. SunTrust Banks has a 1-year low of $41.46 and a 1-year high of $61.69. The company has a market capitalization of $28.03 billion, a P/E ratio of 15.44 and a beta of 1.33. The stock’s 50-day moving average price is $56.63 and its 200 day moving average price is $56.59.
SunTrust Banks (NYSE:STI) last posted its quarterly earnings results on Friday, July 21st. The financial services provider reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.05. SunTrust Banks had a return on equity of 8.48% and a net margin of 20.51%. The company had revenue of $2.23 billion during the quarter, compared to analysts’ expectations of $2.29 billion. During the same quarter in the previous year, the firm earned $0.94 EPS. SunTrust Banks’s revenue was up 2.0% on a year-over-year basis. On average, analysts predict that SunTrust Banks will post $4.04 EPS for the current fiscal year.
SunTrust Banks declared that its board has approved a share repurchase program on Wednesday, June 28th that allows the company to buyback $1.32 billion in shares. This buyback authorization allows the financial services provider to buy up to 4.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.
A number of equities analysts have recently commented on the company. Keefe, Bruyette & Woods reissued a “hold” rating and set a $58.00 price target on shares of SunTrust Banks in a report on Friday, May 5th. Morgan Stanley raised SunTrust Banks from an “underweight” rating to an “equal weight” rating and set a $63.00 price target for the company in a report on Thursday, August 3rd. BidaskClub raised SunTrust Banks from a “hold” rating to a “buy” rating in a report on Wednesday, July 5th. Instinet reissued a “neutral” rating and set a $61.00 price target on shares of SunTrust Banks in a report on Wednesday, July 12th. Finally, Wedbush raised SunTrust Banks from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $60.00 to $63.00 in a report on Monday, May 1st. One research analyst has rated the stock with a sell rating, fifteen have given a hold rating and ten have assigned a buy rating to the company. The company has a consensus rating of “Hold” and an average target price of $58.58.
About SunTrust Banks
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.
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