Shares of SunTrust Banks, Inc. (NYSE:STI) recorded -0.54% loss during trading session on February 8th, 2019. The script traded as low as $63.84 and last traded at $64.37. 9.17 million shares changed exchanged hands during trading, a drop of -88.2% from the 30-day average session volume of 4.87M shares. The firm had previously closed at $64.72. The company has $451.73M outstanding shares, a price-to-earnings ratio of 11.50, price-to-earnings-growth ratio of 4.04and a beta of 1.52. The company has a RSI of 71.00, ATR of 1.66 and a volatility of 2.47% this week. STI has a 52 week low price of $46.05 and a 52 week high price of $75.08.
Investors have identified the tech company SunTrust Banks, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 29.08B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
SunTrust Banks, Inc. (STI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For STI, the company has in raw cash 1.37 billion on their books with 0 currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1.56 billion total, with 211.28 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
STI were able to record 722 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 693 million. In cash movements, the company had a total of 892 million as operating cash flow.
Potential earnings growth for SunTrust Banks, Inc. (STI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, SunTrust Banks, Inc. recorded a total of 1.83 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.11% coming in sequential stages and their sales for the third quarter increasing by 0.04%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 322 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.51 billion. This allows shareholders to hold on to 451.73M with the revenue now reading 1580 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.48 cents a share).
Is the stock of STI attractive?
Having a look at the company’s valuation, the company is expected to record 6.28 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on STI sounds very interesting.
In related news, CEVP & General Auditor ARRIETA JORGE sold 2,500 shares of the company’s stock in a transaction that recorded on August 14th, 2019. The sale was performed at an average price of 73.13, for a total value of 182,835. As the sale deal closes, the Co-COO/Wholesale Segment Exec ARRIETA JORGE now sold 11,000 shares of the company’s stock, valued at 759,000. Also, Director SCRUGGS FRANK P JR bought 1,000 shares of the company’s stock in a deal that was recorded on May 16th, 2019. The shares were bought at an average price of 69.01 per share, with a total market value of 8,501. Following this completion of acquisition, the CEVP and Chief Risk Officer now holds 8,750 shares of the company’s stock, valued at 604,275. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.35%.
7 out of 25 analysts covering the stock have rated it a Buy, while 15 have maintained a Hold recommendation on SunTrust Banks, Inc. stock. 0 analysts has assigned a Sell rating on the STI stock. The 12-month mean consensus price target for the company’s shares has been set at $68.06.