Why is Truist Financial Corporation’s (NYSE:TFC) stock falling?

3 min read | December 15, 2021 01:57 AM AEDT | By Versha Jain

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Why is Truist Financial Corporation’s (NYSE:TFC) stock falling? — Image source: kan_chana, Shutterstock

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Highlights

Truist Financial Corporation’s (NYSE:TFC) stock was down 2.34%.

The stock has a P/E ratio of 13.68 and a dividend yield of 3.23%.

TFC stock grew 22.93% YTD.

The Truist Financial Corporation (NYSE:TFC) stock is trading at US$58.00. The price was down 2.34% at 6:12 am ET, Tuesday.

On December 10, the company announced to redeem 2.7% senior notes due on January 27, 2022. The redemption date is December 27, 2021.

The stock surged last week before the announcement but fell towards the end. It continued declining and closed at US$58.0 on Monday, December 13. The share volume went high to close at 6,036,295 compared to the previous day’s share volume of 3,162,620.

TFC’s 90-day share volume average is 4,603,755, 90-day beta is 1.33, and the price to book ratio is 1.12.

Truist Financial Corporation is a regional bank headquartered in Charlotte, North Carolina. The company operates in retail banking, commercial banking, investment banking, and non-banking segments, including the insurance brokerage business.

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Financials

Its revenue was US$5.6 billion for the September quarter of 2021. For three months ended on September 30, 2021, its net income was US$1.6 billion or US$1.20 per share diluted compared to the previous year quarter net income of US$1.14 billion or US$0.79 per share diluted. The net interest margin came in at 2.81%.

The total deposits were reported to be US$405.9 billion as of September 30, 2021, a 6.5% increase compared to December 31, 2020. The deposits grew driven by fiscal and monetary stimulus in 2021.

Its net interest income was US$3.23 billion for the September quarter of 2021 versus US$3.36 billion in the same period the previous year. The interest income decreased by US$130 million on account of the decrease in loans and lower interest rates on assets.

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Its current market capitalization is US$77.4 billion. It has a P/E ratio of 13.68 and the forward P/E ratio of 10.70. The company has long-existed on the NYSE, its IPO came in 1980. The bank currently employs 52,294 employees.

The company pays dividends, and the dividend yield stands at 3.23%, with an annualized dividend of US$1.92. Its stock traded in the range of US$65.42 to US$45.44 in the last 52 weeks and grew 22.93% YTD.

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Bottom line:

The Dow Jones U.S. Banks Index gained 31.71% YTD. With lowered interest rates and tumultuous market conditions, banking stocks have been quiet for some time. However, with the rate increase, they may again become more active. The investors have many options but should select an investment only after due diligence.

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