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’s shares have underperformed the industry over the past six months. Yet, 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. However, its significant exposure to commercial and residential loan portfolios remains a major near-term concern. Also, expectations of weaker mortgage business makes us apprehensive.”

STI has been the subject of several other reports. Robert W. Baird reaffirmed a “hold” rating and set a $55.00 price objective on shares of SunTrust Banks in a research report on Friday, August 25th. Morgan Stanley raised SunTrust Banks from an “underweight” rating to an “equal weight” rating and set a $63.00 price objective for the company in a research report on Thursday, August 3rd. Wells Fargo & Company started coverage on SunTrust Banks in a research report on Wednesday, August 9th. They set an “outperform” rating and a $70.00 price objective for the company. Royal Bank Of Canada reaffirmed a “buy” rating and set a $60.00 price objective on shares of SunTrust Banks in a research report on Thursday, July 27th. Finally, Keefe, Bruyette & Woods set a $58.00 price objective on SunTrust Banks and gave the stock a “hold” rating in a research report on Thursday, July 6th. One equities research analyst has rated the stock with a sell rating, thirteen have given a hold rating and eleven have issued a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $60.92.

SunTrust Banks (NYSE:STI) traded up 0.21% during midday trading on Monday, hitting $57.34. The stock had a trading volume of 2,829,100 shares. The stock has a 50-day moving average of $55.92 and a 200-day moving average of $56.06. The firm has a market cap of $27.62 billion, a P/E ratio of 15.25 and a beta of 1.33. SunTrust Banks has a 52 week low of $42.36 and a 52 week high of $61.69.

SunTrust Banks (NYSE:STI) last posted its quarterly earnings data 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 analysts’ expectations of $2.29 billion. SunTrust Banks had a return on equity of 8.48% and a net margin of 20.51%. SunTrust Banks’s revenue for the quarter was up 2.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.94 earnings per share. Analysts forecast that SunTrust Banks will post $4.05 EPS for the current fiscal year.

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

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

A number of large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in SunTrust Banks by 0.7% in the second quarter. Vanguard Group Inc. now owns 32,947,441 shares of the financial services provider’s stock valued at $1,868,780,000 after buying an additional 227,501 shares during the period. FMR LLC increased its stake in shares of SunTrust Banks by 4.3% during the second quarter. FMR LLC now owns 29,614,981 shares of the financial services provider’s stock worth $1,679,761,000 after purchasing an additional 1,219,272 shares during the period. Capital World Investors increased its stake in shares of SunTrust Banks by 20.7% during the second quarter. Capital World Investors now owns 29,513,083 shares of the financial services provider’s stock worth $1,673,982,000 after purchasing an additional 5,056,000 shares during the period. AQR Capital Management LLC increased its stake in shares of SunTrust Banks by 8.6% during the first quarter. AQR Capital Management LLC now owns 8,758,128 shares of the financial services provider’s stock worth $484,324,000 after purchasing an additional 694,144 shares during the period. Finally, Victory Capital Management Inc. increased its stake in shares of SunTrust Banks by 4.3% during the second quarter. Victory Capital Management Inc. now owns 5,676,079 shares of the financial services provider’s stock worth $321,947,000 after purchasing an additional 232,350 shares during the period. Hedge funds and other institutional investors own 81.19% of the company’s stock.

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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Analyst Recommendations for SunTrust Banks (NYSE:STI)

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