Truist Financial (NYSE:TFC) Shares Gap Down After Earnings Miss

Truist Financial Corporation (NYSE:TFC) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $49.14, but opened at $47.83. Truist Financial shares last traded at $50.0480, with a volume of 7,001,500 shares changing hands.

The insurance provider reported $1.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.09). The business had revenue of $5.30 billion during the quarter, compared to analyst estimates of $5.32 billion. Truist Financial had a net margin of 16.84% and a return on equity of 8.73%. Truist Financial’s revenue was up 3.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.91 earnings per share.

Truist Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, December 1st. Investors of record on Friday, November 14th were issued a $0.52 dividend. The ex-dividend date was Friday, November 14th. This represents a $2.08 dividend on an annualized basis and a yield of 4.2%. Truist Financial’s dividend payout ratio is currently 55.91%.

Truist Financial announced that its Board of Directors has authorized a share repurchase program on Tuesday, December 16th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the insurance provider to buy up to 15.7% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Key Stories Impacting Truist Financial

Here are the key news stories impacting Truist Financial this week:

• Positive Sentiment: Adjusted EPS and year-over-year earnings improved, with Truist reporting an EPS beat on adjusted measures and earnings above prior-year levels, supporting the rally. Truist Financial Corporation (TFC) Tops Q4 Earnings Estimates
• Positive Sentiment: Revenue and loan growth were positive year-over-year (revenue up ~3.6%), and management provided slide materials and a call for further color, which can reassure investors focused on underlying business trends. Earnings Slide Deck
• Neutral Sentiment: Company issued Q1 and FY-2026 revenue ranges roughly in line with consensus (slightly conservative in parts), leaving guidance neither strongly positive nor clearly disappointing. Conference Call / Guidance Materials
• Neutral Sentiment: Trading volume spiked materially above average, indicating active repositioning by investors reacting to the mixed print and guidance. MarketBeat Earnings Summary
• Negative Sentiment: Operating expenses and credit provisions rose year-over-year, which offset net interest income and fee gains and pressured margins — a key reason some investors sold into the print. TFC Q4 Earnings Beat Despite Y/Y Rise in Expenses, Stock Dips
• Negative Sentiment: An analyst downgrade highlighted “muted growth” that undermines the positive optics of planned buybacks, signaling some shops may trim exposure until growth and cost trajectories improve. Truist: Muted Growth Overshadows Buyback Plans (Downgrade)

Analyst Ratings Changes

TFC has been the subject of several analyst reports. Barclays lowered Truist Financial from an “equal weight” rating to an “underweight” rating and boosted their target price for the stock from $47.00 to $56.00 in a report on Monday, January 5th. Evercore ISI raised shares of Truist Financial from a “hold” rating to an “outperform” rating and lifted their price target for the company from $49.00 to $58.00 in a research report on Tuesday, January 6th. Robert W. Baird cut shares of Truist Financial from a “strong-buy” rating to a “hold” rating in a research note on Thursday, December 11th. TD Cowen reiterated a “buy” rating on shares of Truist Financial in a research note on Wednesday, January 7th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $58.00 target price on shares of Truist Financial in a report on Tuesday, January 6th. Six investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $52.80.

Insiders Place Their Bets

In other Truist Financial news, Director K. David Jr. Boyer sold 5,160 shares of the firm’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $46.45, for a total value of $239,682.00. Following the sale, the director directly owned 10,153 shares in the company, valued at $471,606.85. This trade represents a 33.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Truist Financial

Hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC lifted its position in shares of Truist Financial by 148.5% in the 4th quarter. Brighton Jones LLC now owns 23,581 shares of the insurance provider’s stock worth $1,023,000 after acquiring an additional 14,093 shares during the period. Woodline Partners LP raised its stake in shares of Truist Financial by 39.5% in the first quarter. Woodline Partners LP now owns 111,177 shares of the insurance provider’s stock valued at $4,575,000 after purchasing an additional 31,454 shares in the last quarter. Sivia Capital Partners LLC bought a new position in Truist Financial in the second quarter worth $575,000. Farther Finance Advisors LLC boosted its stake in Truist Financial by 4.9% during the second quarter. Farther Finance Advisors LLC now owns 21,474 shares of the insurance provider’s stock worth $923,000 after buying an additional 1,010 shares in the last quarter. Finally, U.S. Capital Wealth Advisors LLC boosted its stake in Truist Financial by 7.2% during the second quarter. U.S. Capital Wealth Advisors LLC now owns 19,545 shares of the insurance provider’s stock worth $840,000 after buying an additional 1,320 shares in the last quarter. Institutional investors own 71.28% of the company’s stock.

Truist Financial Price Performance

The stock has a market cap of $64.03 billion, a P/E ratio of 13.45, a price-to-earnings-growth ratio of 0.94 and a beta of 0.89. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.70. The company’s fifty day simple moving average is $48.55 and its 200-day simple moving average is $46.12.

About Truist Financial

Truist Financial Corporation is an American bank holding company that provides a broad range of financial services through its primary subsidiary, Truist Bank, and other operating units. The company offers traditional retail banking products and services such as deposit accounts, consumer and residential mortgage lending, and credit and debit card services. Truist also serves commercial clients with middle-market and corporate lending, treasury and payment solutions, and specialty finance products.

Beyond core banking, Truist operates wealth management, asset management, insurance and capital markets businesses.