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Is this Large Market Cap Stock target price reasonable for SunTrust Banks, Inc. (NYSE:STI)?

The company in question is, SunTrust Banks, Inc. (NYSE:STI) currently with a stock price of 42.67 (-0.54% today). The market cap for SunTrust Banks, Inc. is 21688.52, and is in the sector Financial, and Money Center Banks industry. The target price for SunTrust Banks, Inc. is 44.72. Currently SunTrust Banks, Inc. is trading with a P/E of 11.49, and a forward P/E of 11.89. Average volume for SunTrust Banks, Inc. is 3821.09 and so far today it is 1708583.

Performance in the last year for SunTrust Banks, Inc. has been -1.05%. For EPS growth, SunTrust Banks, Inc. has seen a growth of 10.80%, and is looking to grow in the next year to 2.76%. More long term stats show that EPS growth has been 86.20% over the last five years and could be 2.73% for the next five years. SunTrust Banks, Inc. has seen sales growth quarter over quarter at 9.80%, with EPS growth quarter over quarter at 9.80%. The 20-day simple moving average is 1.31%, with the 200-day simple moving average coming to 7.36%.

Since the IPO date for SunTrust Banks, Inc. on the 12/30/1987, SunTrust Banks, Inc. has seen performance year to date to be 1.41%. With SunTrust Banks, Inc. trading at 42.67, the dividend yield is 2.24%, and the EPS is 3.73.

So could SunTrust Banks, Inc., be undervalued? Well as said before P/E is 11.49. The PEG is 4.21, P/S is 3.92 and the P/B is at 0.93. The P/cash is 1.76, with P/free cash flow at *TBA.

SunTrust Banks, Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 0.53, and total debt/equity at 0.53.

In terms of margins, SunTrust Banks, Inc. has a gross margin of *TBA, an operating margin of 84.90% and a profit margin of 34.50%.Payout ratio for SunTrust Banks, Inc. is 25.60%. Return on assets come to 1.00% with return on investment coming to 12.50%.

Insider ownership for SunTrust Banks, Inc., is at 0.30% and institutional ownership comes to 84.10%. Outstanding shares are at 505.56. While shares float is 499.4. The float short is currently 2.21%, and short ratio is 2.88.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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