SunTrust Banks, Inc. (NYSE:STI) has been downgraded by Jefferies on January 08 which now rates the stock as Hold compared with Buy rating suggested in the past. Analysts at Robert W. Baird, shed their negative views on January 02 by lifting it fromNeutral to Outperform. The stock won favor of Edward Jones analysts who expressed their confidence in it using an upgrade from Hold to Buy on October 31. Piper Jaffray analysts came out with bearish views on September 13 when the call was made. They think the stock is now Neutral compared to to their prior call for Overweight.
SunTrust Banks, Inc. (STI) hit an intraday high Wednesday at $55.85. The shares finished at $55.46, after trading as low as $54.52 earlier in the session. It rose 1.24% in recent trade and currently has a stock-market value of $25.53B. Trading activity significantly weakened as the volume at ready counter decreased to 4,732,632 shares versus 5,600,250 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,480,750 shares. The stock is now 20.43% above against its bear-market low of $46.05 on December 26, 2018. It has retreated -35.38% since it’s 52-week high of $75.08 reached in August. Now the market price is down -16.41% on the year and up 9.95% YTD.
STI’s 50 day simple moving average (SMA 50) price is $57.71 and its 200-day simple moving average (SMA 200) price is $66.04. The company’s stock currently has a total float of 438.35M shares. Its weekly volatility is hovering around 2.35% and felt 3.27% volatility in price over a month. On the upside, the share price will test short term resistance at around $56.03. On a downside, the stock is likely to find some support, which begins at $54.7. The failure to get near-term support could push it to $53.95.
Separately, it has been reported that multiple insider activity took place at SunTrust Banks, Inc. (STI). CEVP & General Auditor Arrieta Jorge sold 2,500 shares for $6,148 in transaction occurred on 2018/08/14. After making this transaction, the CEVP & General Auditor owns a direct stake of 182,825 shares, worth $340,968, as per the last closing price. On 2018/05/21 Cummins Hugh S. Iii, Co-COO/Wholesale Segment Exec at STI, dumped 11,000 shares at an average price of $69 per share. The selling total is valued at $2,387,553.
Director, Scruggs Frank P Jr had invested in 1,000 shares for $8,501 through a trade on 2018/05/16. Following this activity, the insider holds 69,010 shares worth $471,466 as of recent close. Wall Street’s most bullish SunTrust Banks, Inc. (NYSE:STI) analysts are predicting the share price to blow past $88 per share during the next 12 months. The current median share price forecast by them is $68, suggesting that the stock could increase 22.61% in that time frame. The average price target of $67.27 calls for a nearly 21.29% increase in the stock price.
When looking at valuations, SunTrust Banks, Inc. (STI) has a cheap P/E of 10.93x as compared to industry average of 18.6x. Moreover, it trades for 9.47 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.15x price/book and 3.7x price/sales. Compared to others, SunTrust Banks, Inc. is in a different league with regards to profitability, having net margins of 39.8%. To put some perspective around this, the industry’s average net margin is 33.03%. STI’s ROE is 12.3%, which is also considerably worse than the industry’s ROE of 16.94%.
Shares of SunTrust Banks, Inc. (STI) have dropped -10.9% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, SunTrust Banks, Inc. (NYSE:STI) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 0 quarters (0%), whereas at 1 occasion EPS met analyst expectations. STI last reported earnings on October 19, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.42 per share, -36.04% change on the same period last year. That was better than consensus for $1.39. Revenue for the recent quarter stood at $2.32 billion, down 0% on last year and below the $2.35 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.3 billion to $2.37 billion, which should be compared with $2.42 billion generated last year. EPS is seen in a range of $1.43 to $1.6, against the $1.2 reported a year ago.