Truist Stock Story

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TFC
 Stock
  

USD 49.75  0.35  0.70%   

By Vlad Skutelnik
Macroaxis Story
Lets try to go over the odds of Truist Financial to fully recover from the current slip as its shares went up 4.89%. Truist Financial Corp current daily volatility is 1.86 percent, with a beta of 0.87 and an alpha of -0.04 over DOW. As many millenniums are excited about truist financial corp, it is only fair to go over Truist Financial Corp. We will evaluate why recent Truist Financial price moves suggest a bounce in August.
Published over two weeks ago
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Will Truist Financial (NYSE:TFC) current volatility rise scare investors?

Truist Financial Corp has roughly 37.36 B in cash with 5.49 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 28.06. The company has 38.92 B in debt. Debt can assist Truist Financial until it has trouble settling it off, either with new capital or with free cash flow. So, Truist Financial's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Truist Financial Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Truist to invest in growth at high rates of return. When we think about Truist Financial's use of debt, we should always consider it together with cash and equity.
Investing in Truist Financial, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Truist Financial along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Truist Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Truist Financial in the context of predictive analytics.
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13 Analysts
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Truist Financial. Your research has to be compared to or analyzed against Truist Financial's peers to derive any actionable benefits. When done correctly, Truist Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Truist Financial Corp.

How important is Truist Financial's Liquidity

Truist Financial financial leverage refers to using borrowed capital as a funding source to finance Truist Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Truist Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Truist Financial's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Truist Financial, but it might be worth checking our own buy vs. sell analysis

Truist Financial Correlation with Peers

Investors in Truist can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Truist Financial Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Truist Financial and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Truist is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Truist for more details

Truist Financial exotic insider transaction detected

Legal trades by Truist Financial insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Truist insider trading alert for general transaction of restricted stock unit by David Ratcliffe, the corporate stakeholder, on 24th of June 2022. This event was filed by Truist Financial Corp with SEC on 2022-06-24. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Truist Financial Investor Appetite?

Truist Financial Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0624, which indicates the firm had -0.0624% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Truist Financial Corp exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Truist Financial coefficient of variation of (1,179), and Risk Adjusted Performance of (0.12) to confirm the risk estimate we provide.

Our perspective of the current Truist Financial rise

The kurtosis is down to 0.74 as of today. Truist Financial Corp exhibits very low volatility with skewness of 0.59 and kurtosis of 0.74. However, we advise investors to further study Truist Financial Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Truist Financial's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Truist Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Truist Financial Implied Volatility

Truist Financial's implied volatility exposes the market's sentiment of Truist Financial Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Truist Financial's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Truist Financial stock will not fluctuate a lot when Truist Financial's options are near their expiration.

Our Final Takeaway

Whereas few other entities in the banks—regional industry are either recovering or due for a correction, Truist Financial may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 18th of July 2022, we believe Truist Financial is currently undervalued. It follows the market closely and projects quite high chance of financial distress in the next two years. Our primary 90 days recommendation on the company is Buy.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Truist Financial Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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