TFS Financial (NASDAQ:TFSL) Trading Down 9.2% on Disappointing Earnings

Shares of TFS Financial Corporation (NASDAQ:TFSL) were down 9.2% during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $13.91 and last traded at $13.3390. Approximately 80,563 shares changed hands during trading, a decline of 85% from the average daily volume of 551,210 shares. The stock had previously closed at $14.69.

The bank reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.01). TFS Financial had a net margin of 11.29% and a return on equity of 4.80%. The company had revenue of $83.73 million during the quarter, compared to analyst estimates of $84.97 million.

TFS Financial Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Tuesday, December 2nd were given a dividend of $0.2825 per share. The ex-dividend date was Tuesday, December 2nd. This represents a $1.13 dividend on an annualized basis and a dividend yield of 8.0%. TFS Financial’s payout ratio is presently 353.13%.

Wall Street Analyst Weigh In

TFSL has been the topic of several recent research reports. Wall Street Zen upgraded TFS Financial from a “sell” rating to a “hold” rating in a report on Saturday, November 1st. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of TFS Financial in a research note on Monday, December 29th. Zacks Research upgraded shares of TFS Financial to a “hold” rating in a research report on Monday, January 19th. Finally, Piper Sandler assumed coverage on shares of TFS Financial in a research note on Friday, January 16th. They set a “neutral” rating and a $15.00 price target for the company. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $15.00.

Insider Activity

In related news, CFO Meredith S. Weil sold 15,000 shares of TFS Financial stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $13.85, for a total transaction of $207,750.00. Following the transaction, the chief financial officer owned 48,527 shares of the company’s stock, valued at $672,098.95. This trade represents a 23.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Andrew J. Rubino sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $14.23, for a total transaction of $71,150.00. Following the completion of the sale, the chief operating officer directly owned 19,126 shares of the company’s stock, valued at $272,162.98. The trade was a 20.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 47,600 shares of company stock valued at $665,316. Insiders own 0.72% of the company’s stock.

Institutional Trading of TFS Financial

A number of large investors have recently made changes to their positions in the company. Lakewood Capital Management LP raised its position in shares of TFS Financial by 19.9% during the third quarter. Lakewood Capital Management LP now owns 2,533,382 shares of the bank’s stock worth $33,377,000 after purchasing an additional 420,000 shares during the period. Norges Bank acquired a new position in shares of TFS Financial in the 2nd quarter valued at approximately $5,220,000. Two Sigma Investments LP increased its stake in TFS Financial by 289.6% during the 3rd quarter. Two Sigma Investments LP now owns 254,651 shares of the bank’s stock worth $3,355,000 after purchasing an additional 189,282 shares in the last quarter. Bank of America Corp DE raised its holdings in TFS Financial by 28.0% during the 3rd quarter. Bank of America Corp DE now owns 834,794 shares of the bank’s stock worth $10,998,000 after buying an additional 182,810 shares during the period. Finally, UBS Group AG raised its holdings in TFS Financial by 48.2% during the 3rd quarter. UBS Group AG now owns 389,789 shares of the bank’s stock worth $5,135,000 after buying an additional 126,782 shares during the period. Institutional investors own 9.81% of the company’s stock.

TFS Financial Stock Performance

The stock has a market cap of $3.95 billion, a P/E ratio of 43.97 and a beta of 0.73. The company has a debt-to-equity ratio of 2.57, a current ratio of 1.54 and a quick ratio of 1.53. The stock’s 50 day simple moving average is $14.04 and its two-hundred day simple moving average is $13.57.

About TFS Financial

TFS Financial Corporation is a bank holding company for TFS Capital Bank, headquartered in Austin, Texas. The company offers commercial banking and specialty finance solutions designed to meet the unique needs of small and mid-sized businesses. Through its bank charter, TFS Financial provides a full suite of deposit products alongside a range of lending options tailored to growing enterprises.

The bank’s lending portfolio includes equipment financing, working capital lines of credit, and term loans structured to support capital expenditures and operational needs.