William Rogers, CEO of Truist Financial Corp (TFC), recently bought 57,300 shares. The buy increased his stake by 5%, and came to a total cost of $2,518,908.
The CEO was the last buyer of shares with a 10,000 share buy in October 2023, at a cost of $280,480. There were two additional insider buys from directors last year, with the largest buy for just under $500,000. There has been just one insider sale this year.
Overall, Truist insiders own 0.3% of shares.
The regional bank is up 36% over the past year, nearly twice the return of the S&P 500. That’s in spite of the bank’s earnings dropping by 31%.
However, even with that loss, Truist still looks like a relative value. That’s because shares trade at 12 times forward earnings, a significant discount to the overall market.
Plus, Truist trades right at its book value, a sign that shares are still on the side of being fairly valued.
Action to take: With shares trending higher and the stock still on the value side, there may be more upside for investors here. Truist shares also pay a 4.8% dividend at current prices.
For traders, shares are touching on 52-week highs. The October $45 calls, last trading for about $1.90, are at-the-money, and could deliver mid-double-digit returns from here over the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.