Trustmark Corporation (NASDAQ:TRMK) has been downgraded from a “hold” rating to a “sell” rating by Wall Street Zen in a research note released on Saturday. This decision follows a series of evaluations from various financial institutions, indicating a mixed outlook for the company’s stock.
Recent Ratings and Market Performance
Weiss Ratings reaffirmed a “buy (B-)” rating for Trustmark on October 8, 2023, highlighting some support for the stock amidst the downgrade. In contrast, Zacks Research adjusted its rating on September 23, 2023, reducing Trustmark from a “strong-buy” to a “hold.” Overall, three investment analysts rate Trustmark as a “buy,” while three others have classified it as a “hold.” According to MarketBeat, Trustmark currently holds an average rating of “Moderate Buy” with a target price of $42.25.
On the trading front, shares of Trustmark opened at $39.23 on Friday, reflecting a decrease of 1.2% from the previous day. The company boasts a market capitalization of $2.35 billion, a price-to-earnings ratio of 10.72, and a beta value of 0.71. The stock’s performance over the past year has seen a low of $29.77 and a high of $41.33.
Financial Results and Analyst Predictions
Trustmark released its most recent earnings results on October 28, 2023. The financial services provider reported earnings per share (EPS) of $0.94 for the quarter, slightly missing the consensus estimate of $0.95 by $0.01. Revenue for the quarter reached $207.53 million, surpassing analyst expectations of $206.13 million. Trustmark’s net margin stood at 19.82%, with a return on equity of 10.90%. Year-over-year revenue growth for the quarter was recorded at 5.3%, compared to $0.84 EPS in the same quarter last year. Analysts predict that Trustmark will achieve an EPS of 3.42 for the current fiscal year.
Changes in institutional trading have also been notable. Hedge funds and other institutional investors have recently adjusted their stakes in Trustmark. For instance, Richardson Financial Services Inc. increased its holdings by 86.7% during the third quarter, now owning 743 shares valued at approximately $29,000. Similarly, Bessemer Group Inc. raised its position in Trustmark by 37.4%, owning 1,073 shares worth around $42,000. Other firms, including EverSource Wealth Advisors LLC and IFP Advisors Inc., also reported significant increases in their holdings.
As of now, institutional and hedge fund ownership accounts for 67.64% of Trustmark’s stock.
About Trustmark Corporation
Trustmark Corporation serves as the bank holding company for Trustmark National Bank, providing a range of banking and financial solutions to both individuals and corporate clients across the United States. The company operates through three primary segments: General Banking, Wealth Management, and Insurance. Its offerings include checking and savings accounts, certificates of deposit, loans for commercial projects and real estate, as well as treasury management services.
As Trustmark navigates this complex financial landscape, the mixed ratings from analysts reflect a cautious optimism tempered by recent performance indicators. Investors will be closely monitoring further developments as the company adapts to evolving market conditions.
