Jefferies Group Weighs in on SunTrust Banks, Inc.’s FY2017 Earnings (STI)
SunTrust Banks, Inc. (NYSE:STI) – Equities research analysts at Jefferies Group cut their FY2017 EPS estimates for shares of SunTrust Banks in a report released on Tuesday. Jefferies Group analyst K. Usdin now forecasts that the financial services provider will post earnings of $4.01 per share for the year, down from their previous estimate of $4.03. Jefferies Group currently has a “Buy” rating and a $69.00 target price on the stock. Jefferies Group also issued estimates for SunTrust Banks’ Q4 2017 earnings at $1.04 EPS.
A number of other research analysts have also weighed in on the stock. Zacks Investment Research lowered shares of SunTrust Banks from a “buy” rating to a “hold” rating in a research report on Wednesday. FBR & Co lowered shares of SunTrust Banks from a “buy” rating to a “neutral” rating and set a $62.00 target price for the company. in a research report on Tuesday. Citigroup Inc. reissued a “neutral” rating and set a $63.00 target price (up previously from $60.00) on shares of SunTrust Banks in a research report on Monday. Credit Suisse Group raised shares of SunTrust Banks from an “underperform” rating to a “neutral” rating and boosted their target price for the stock from $56.00 to $60.00 in a research report on Monday. Finally, UBS AG reissued a “neutral” rating and set a $62.00 target price (up previously from $61.00) on shares of SunTrust Banks in a research report on Friday, October 6th. Seventeen equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $62.48.
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Shares of SunTrust Banks (STI) opened at 60.17 on Thursday. The stock has a market capitalization of $28.98 billion, a price-to-earnings ratio of 16.00 and a beta of 1.31. The stock’s 50 day moving average price is $56.84 and its 200-day moving average price is $56.25. SunTrust Banks has a 12 month low of $44.25 and a 12 month high of $61.69.
SunTrust Banks (NYSE:STI) last announced its earnings results on Friday, July 21st. The financial services provider reported $1.03 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.98 by $0.05. SunTrust Banks had a return on equity of 8.48% and a net margin of 20.51%. The business had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.29 billion. During the same period in the previous year, the company earned $0.94 earnings per share. The company’s revenue for the quarter was up 2.0% compared to the same quarter last year.
Institutional investors have recently modified their holdings of the business. Keybank National Association OH grew its stake in SunTrust Banks by 2.5% during the second quarter. Keybank National Association OH now owns 147,647 shares of the financial services provider’s stock worth $8,375,000 after buying an additional 3,564 shares during the last quarter. Park National Corp OH grew its stake in SunTrust Banks by 0.8% during the second quarter. Park National Corp OH now owns 9,907 shares of the financial services provider’s stock worth $562,000 after buying an additional 80 shares during the last quarter. Ballentine Partners LLC bought a new stake in SunTrust Banks during the first quarter worth about $275,000. HPM Partners LLC grew its stake in SunTrust Banks by 32.5% during the second quarter. HPM Partners LLC now owns 95,768 shares of the financial services provider’s stock worth $4,681,000 after buying an additional 23,506 shares during the last quarter. Finally, Airain ltd grew its stake in SunTrust Banks by 479.9% during the second quarter. Airain ltd now owns 59,044 shares of the financial services provider’s stock worth $3,349,000 after buying an additional 48,863 shares during the last quarter. 81.18% of the stock is currently owned by hedge funds and other institutional investors.
In other SunTrust Banks 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 of the company’s stock, valued at $201,550.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.55% of the stock is currently owned by corporate insiders.
The company also recently disclosed a quarterly dividend, which was paid on Friday, September 15th. Shareholders of record on Thursday, August 31st were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 2.66%. 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 authorized a stock buyback program on Wednesday, June 28th that permits the company to buyback $1.32 billion in outstanding shares. This buyback authorization permits the financial services provider to purchase up to 4.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.
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.
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