Truist Financial Corporation (TFC)

Truist Financial Corporation Stock (TFC) dropped by 7.11% from $35.59 to $33.06 in the trading on Thursday July 20, 2023. The reasons why TFC stock down today include:

• Lower net interest income: Net interest income fell 6% from the first quarter, which was worse than expected. Truist’s deposits did rise slightly from the first quarter and exceeded analyst expectations, but the cost it paid on those deposits rose 39 basis points, which caused the decline in net interest income.
• Disappointing guidance: Truist revised down its revenue guidance for the full year by 1%-2%, citing lower net interest income, slower loan growth, and lower investment banking revenue.
• Mid-Sized banks face scrutiny amidst industry turmoil: Mid-sized banks have come under intense pressure from investors following recent industry turmoil. The collapse of three sizable banks and subsequent outflows across the banking system have pushed up deposit rates and prompted many regional banks to reduce their earnings estimates for the rest of the year.

Truist Financial Corporation Stock (TFC) dropped by 1.99% from $31.09 to $30.47 in the trading on Wednesday May 31, 2023. The reasons why TFC stock down today include:

• FDIC Report Highlights Deposit Outflows: The Federal Deposit Insurance Corporation's (FDIC) latest quarterly report revealed a staggering $472 billion decline in U.S. bank deposits, the largest drop since records began in 1984. The FDIC expressed concerns over the persistence of deposit outflows, particularly among uninsured deposits exceeding the $250,000 coverage limit.
• Economic headwind: Increased bank funding costs and deposit volatility are expected to keep pressure on small and midsized banks, leading to tighter credit conditions and hampering private-sector activity.
• Fed's monetary policy stance: Investors are also growing wary of the Federal Reserve's monetary policy stance. The consensus is that the Fed will proceed with another quarter-point interest rate hike at its upcoming June meeting, a move that could further strain bank funding and credit conditions.

Truist Financial Corporation Stock (TFC) dropped by 6.00% from $35.59 to $33.48 in the trading on Friday April 21, 2023. The reason why TFC stock down today is due to lower price target by the analysts. Truist Financial, the seventh-largest bank in the U.S. by assets, reported first-quarter earnings that missed analysts' consensus expectations. Several analysts lowered their price targets on Truist Friday, causing TFC share price to decline. Despite missing expectations, Truist saw strong growth in net income, revenue, and loan portfolios. However, deposits dipped and the cost of deposits rose. Analysts from Morgan Stanley, Piper Sandler, RBC Capital, and Credit Suisse lowered their price targets due to economic headwinds but maintained their ratings on the bank.