Truist Financial Stock Downgraded Despite Fed Chair Powell’s Pivot
December 20, 2023
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Analysts have noted that Truist ($NYSE:TFC)’s stock had already appreciated significantly prior to the announcement and that the company may experience a period of stagnation or decline in its stock price. The downgrade is an indication that investors remain cautious despite the Federal Reserve’s new policy.
Share Price
On Tuesday, TRUIST FINANCIAL stock opened at $36.4 and closed at $36.7, up by 1.0% from previous closing price of 36.3 despite the pivot made by Fed Chair Powell. Despite the Fed Chair’s pivot towards more accommodative monetary policy, the stock of TRUIST FINANCIAL was still downgraded by two brokerage firms. The downgrading of TRUIST FINANCIAL is a sign of caution for investors as interest rate changes can have a significant impact on the performance of banks. Despite the downgrading, TRUIST FINANCIAL stock saw slight gains on Tuesday as investors remain optimistic about the company’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Truist Financial. More…
| Total Revenues | Net Income | Net Margin |
| – | 5.33k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Truist Financial. More…
| Operations | Investing | Financing |
| 9.79k | 7.1k | -9.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Truist Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 542.71k | 480.7k | – |
Key Ratios Snapshot
Some of the financial key ratios for Truist Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.4% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale recently conducted an analysis of TRUIST FINANCIAL‘s fundamentals. According to Star Chart, TRUIST FINANCIAL is classified as a ‘rhino’, which we have concluded to be a company that has achieved moderate revenue or earnings growth. We believe that this type of company may be attractive to certain type of investors who are looking for moderate growth with medium profitability levels. When looking at GoodWhale’s score for TRUIST FINANCIAL, it rated strong in terms of growth, asset, dividend, and medium in terms of profitability. Furthermore, the company scored a high health score of 8/10 with regard to its cashflows and debt, indicating that it is in good financial health and capable of paying off debt and funding future operations. More…
Peers
Truist Financial Corp is a large financial institution that offers a variety of banking and financial services to its customers. Its competitors include Public Bank Bhd, Bandhan Bank Ltd, and Bank of Georgia Group PLC.
– Public Bank Bhd ($KLSE:1295)
Public Bank Bhd is a Malaysian bank holding company. It was founded in 1966 and is headquartered in Kuala Lumpur. The company provides banking and financial services to individuals, businesses, and governments in Malaysia, Singapore, Cambodia, and Vietnam. Public Bank Bhd has a market cap of 84.24B as of 2022. The company’s main business activities are deposit-taking, loan and financing, foreign exchange, money market and treasury operations, and other related services.
– Bandhan Bank Ltd ($BSE:541153)
Bandhan Bank Ltd is an Indian banking and financial services company headquartered in Kolkata, West Bengal. It was founded in 2001 by Chandra Shekhar Ghosh. As of March 2019, the bank had 9,421 branches and 13,958 ATMs across 2,764 cities in India. Bandhan Bank offers banking products and services including savings and deposit accounts, loans, debit and credit cards, money transfer, and insurance. The bank had a market capitalization of 432.67 billion as of March 2019.
– Bank of Georgia Group PLC ($LSE:BGEO)
Bank of Georgia Group PLC is a leading banking group in Georgia, offering a wide range of banking and financial services to individuals, businesses and corporate clients. The Group has a significant market share in deposits, loans, credit cards and other key banking indicators. It is also the largest non-bank financial institution in the country. The Group employs around 4,000 people and serves over 1.5 million customers through a network of 97 branches and 202 ATMs across Georgia.
Summary
Investors should take note of the recent downgrade of Truist Financial‘s stock to a “Hold” rating despite Federal Reserve Chairman Jerome Powell’s pivot towards an accommodative monetary policy. Analysts cite concerns about loan losses and capital adequacy as the reasons for the downgrade. Investors should exercise caution when considering investing in Truist Financial at this time as they monitor the company’s immediate and long-term performance.
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