SunTrust Banks, Inc. (STI): Analyst Ratings You Should Pay Attention To

Analysts at Jefferies cut their rating on shares of SunTrust Banks, Inc. (NYSE:STI) from Buy to Hold in their opinion released on January 08. Robert W. Baird analysts bumped their recommendation on STI stock from Neutral to Outperform in a separate flash note to investors on January 02. Analysts at Edward Jones issued an upgrade from Hold to Buy for the stock, in a research note that dated back to October 31.

By watching the trading activity of corporate insiders, it will become easier to get a sense of SunTrust Banks, Inc. (NYSE:STI)’s prospects. The earliest insider trade took place on 08/14/2018. Arrieta Jorge parted with a total of 2.5 thousand shares of company at average share price of $73.13. The total for the sales was set at $182.83 thousand. After this transaction, the CEVP & General Auditor account balance stood at 6.15 thousand shares. The stock lost -23.74 percent since that insider sale. On 05/21/2018, Cummins Hugh S. Iii, Co-COO/Wholesale Segment Exec, sold 11 thousand shares at a price per share of $69. This removed 759 thousand shares from the insider’s fortune and the stock saw a -19.17 percent retreat in value since the news became public. This transaction left 43.05 thousand shares in the Co-COO/Wholesale Segment Exec account. On 05/16/2018, Director Scruggs Frank P Jr performed a purchase transaction worth $69.01 thousand. This purchase at $69.01 each has added 1 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -19.19 percent decrease since the transaction was reported. The insider now is left with 8.5 thousand shares remaining in the account. Lienhard Jerome T, who performs the CEVP and Chief Risk Officer job, sold 8.75 thousand shares for $604.28 thousand. The disposal occurred on 05/14/2018 was priced at $69.06 per share. The share price plunged -19.24 percent since the reporting date. Lienhard Jerome T now left with a stake of 41.37 thousand STI stock worth $2.31 million after the insider selling.

SunTrust Banks, Inc. (STI) is expected to jump by 19.1 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $88-month high price target. This represents a whopping 57.79 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $66.75, which represents a return potential of 19.69 percent when compared to the closing price of the stock of $55.77 on Friday, January 11. The lowest price target for the stock is $56 — slightly more than 0.41 percent from STI’s current share price.

The shares are currently floating around the first support level of $54.91. Below this, the next support is placed in the zone of $54.06. Till the time, the STI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.92 on daily chart, which may remain a cause for concern. If the price breaks below $54.06 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $56.48 mark may result into a pull-back move towards $57.2 level.

STI shares accumulated 0.4 points or 0.72 percent on Friday to $55.77 with a light trade volume of 4.248 million shares. After opening the session at $54.93, the shares went as high as $56.34 and as low as $54.77, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $24.9 billion and now has 446.06 million shares outstanding. SunTrust Banks, Inc. (STI) stock has gained 2.31 percent of market value in 21 trading days.

STI stock has a trailing 3-year beta of 1.45, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.07 a share in the trailing twelve months. The stock’s value has surged 10.57 percent year to date (YTD) against a decline of -17.62 percent in 12 month’s time. The company’s shares still trade -25.72 percent away from its 1-year high of $75.08 and 21.11 percent up from 52-week low of $46.05. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of SunTrust Banks, Inc. (STI) are trading at a P/E ratio of 12.43 times earnings reported for the past 12 months. The industry STI operates in has an average P/E of 18.6. Its P/E ratio went as low as 11.97X and as high as 16.77 over the 5-year span. Further, it is sporting a 3.6 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.82. 0 percent is the gross profit margin for SunTrust Banks, Inc. and operating margin sits at 82.2 percent. Along with this, the net profit margin is 39.8 percent.