William H. Rogers (NYSE:ROG) Jr., Chairman and CEO of Truist Financial Corp (NYSE:NYSE:TFC), recently acquired 34,180 shares of the company's common stock, amounting to a total value of approximately $1.66 million. The shares were purchased at a price of $48.56 each. Following this transaction, Rogers holds a direct ownership of 691,450.644 shares. Additionally, he maintains indirect ownership of shares through various trusts and a 401(k) plan. This transaction was reported in a recent SEC filing, highlighting Rogers' continued investment in Truist Financial.
In other recent news, Truist Financial Corporation has undergone significant changes in its leadership team. Brad Bender has been appointed as the new chief risk officer following the retirement of Clarke R. Starnes III. Kerry Jessani, a veteran from JP Morgan, has been appointed as the head of mid-corporate banking. These appointments are part of recent developments in the corporation.
Truist reported a GAAP net income of $1.3 billion or $0.99 per share for the third quarter of 2024. The adjusted earnings per share stood at $0.97, reflecting a 2.4% increase in adjusted revenue, primarily driven by investment banking and trading. RBC Capital Markets reiterated an Outperform rating on Truist Financial following these robust results.
The corporation also announced dividends for its common and various series of preferred stock. Furthermore, Truist has launched a substantial stock repurchase program, with $500 million worth of shares already repurchased in the third quarter and plans for an additional $500 million in repurchases in the fourth quarter.
Other recent developments include a $25 million loan loss provision related to Hurricane Helene and a projected 1.5% decrease in revenue for Q4 2024 due to lower commercial loan balances. Truist is focusing on expanding client relationships post-merger and plans to maintain an elevated level of $500 million in buybacks for the foreseeable future, as noted by analysts from RBC Capital and other firms.
InvestingPro Insights
William H. Rogers Jr.'s recent acquisition of Truist Financial Corp (NYSE:TFC) shares aligns with several positive indicators highlighted by InvestingPro. The CEO's $1.66 million investment comes at a time when TFC is trading near its 52-week high, with the stock price at 97.23% of its peak. This bullish sentiment is further supported by the company's strong performance, as evidenced by a 59.75% total return over the past year.
InvestingPro Tips suggest that Truist Financial has maintained dividend payments for an impressive 52 consecutive years, demonstrating a commitment to shareholder value that complements Rogers' increased stake. Additionally, the company's high shareholder yield and the expectation of net income growth this year paint a positive picture for investors.
From a valuation perspective, TFC's adjusted P/E ratio of 4.0 for the last twelve months as of Q3 2024 indicates that the stock may be undervalued relative to its earnings potential. This could explain Rogers' decision to increase his holdings at the current price point.
It's worth noting that InvestingPro offers 12 additional tips for Truist Financial, providing investors with a more comprehensive analysis of the company's prospects. Those seeking a deeper understanding of TFC's financial health and market position may find value in exploring these additional insights.
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