William Rogers, CEO at Truist Financial (TFC), recently added 10,000 shares to his holdings. The buy increased his position by 1 percent, and came to a total cost of $280,240.
This is the first insider activity since May, when a company director bought 5,000 shares, paying just under $95,000. Another director bought 13,125 shares in March, for just under $500,000. Going further back, there has been a mix of insider buys and sells.
Overall, company insiders own 0.3 percent of shares.
The 9th-largest bank in the U.S., Truist has seen shares drop by over a third in the past year on concerns about the banking sector and rising interest rates.
However, the bank has only seen earnings drop about 28 percent, and revenues are down 8 percent, while still maintaining a 24 percent profit margin.
Action to take: At current prices, shares are valued at less than 8 times forward earnings. Plus, Truist is trading at about a 33 percent discount to its book value, so most downside appears to be well priced in.
At current prices, the bank yields a hefty 7.5 percent, paying investors well for the perceived risk here.
For traders, shares are back near their May lows and look ready to move higher. The January $30 calls, last going for about $1.20, could see mid-to-high double-digit gains on a rebound in the months ahead.
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 of the companies mentioned in this article.