Insiders have access to the latest information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Truist Financial Corp (TFC:US). Truist Financial is a bank holding company that was formed in 2019 as the result of the merger of BB&T and SunTrust Banks. One of the largest banks in America by assets, it operates nearly 3,000 branches across the US, offering a range of services including consumer and commercial banking, securities brokerage, asset management, and insurance services. It is listed on the New York Stock Exchange and currently has a market capitalization of $61.87 billion.
Truist Financial Corp: Insider Buying
Our insider transaction data shows that on May 4, board member Steven Voorhees bought 20,000 TFC shares at a price of $49.82 per share. This trade cost the insider $996,320 and increased his holding to 60,873 shares.
This trade is worth highlighting for a couple of reasons. Firstly, it has increased the size of the insider’s holding by 49%. The fact that the insider has boosted the size of his position by nearly 50% suggests that he sees a lot of value in the stock right now.
Secondly, this is not the first large purchase from Mr. Voorhees recently. Our data shows that in the first week of March, he picked up 20,000 shares near the $60 mark. This means that the insider has spent over $2 million on stock in the space of just a few months. This would suggest he is very confident in relation to the stock’s prospects.
Truist had a solid first quarter of 2022 given the high level of geopolitical uncertainty and market volatility.
While net income available to common shareholders declined from $1,334 million in Q1 2021 to $1,327 million in Q1 2022, adjusted diluted earnings per share rose 4.2% year on year to $1.23, driven by a lower provision for credit losses. Return on average tangible common shareholders' equity came in at 18.6% versus 16.4% a year earlier.
"We had a solid first quarter in terms of earnings, though underlying results were mixed in light of market volatility and geopolitical uncertainty. Our strengths this quarter included an improving core margin, with more upside from here, strong expense discipline and continued favorable credit results,” commented Chairman and CEO Bill Rogers.
Looking ahead, the group acknowledged the uncertainty presented by geopolitical and economic risks. However, it advised that it remains confident in the outlook given expectations for higher interest rates, its diverse business model, and continued expense discipline.
In light of this medium-term outlook, we see the insider buying here as bullish.