TFS Financial (NASDAQ:TFSL) Trading Down 9.2% on Disappointing Earnings

Shares of TFS Financial Corporation (NASDAQ:TFSL) fell 9.2% during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $13.91 and last traded at $13.3390. 80,563 shares changed hands during trading, a decline of 85% from the average session volume of 551,210 shares. The stock had previously closed at $14.69.

The bank reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.01). TFS Financial had a net margin of 11.48% and a return on equity of 4.79%. The company had revenue of $83.73 million during the quarter, compared to analyst estimates of $84.97 million.

TFS Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 16th. Stockholders of record on Tuesday, December 2nd were paid a dividend of $0.2825 per share. This represents a $1.13 annualized dividend and a dividend yield of 8.3%. The ex-dividend date of this dividend was Tuesday, December 2nd. TFS Financial’s dividend payout ratio is 353.13%.

Analyst Ratings Changes

Several brokerages have weighed in on TFSL. Zacks Research raised TFS Financial to a “hold” rating in a report on Monday, January 19th. Wall Street Zen upgraded shares of TFS Financial from a “sell” rating to a “hold” rating in a research report on Saturday, November 1st. Piper Sandler began coverage on shares of TFS Financial in a report on Friday, January 16th. They issued a “neutral” rating and a $15.00 price objective on the stock. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of TFS Financial in a report on Monday, December 29th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $15.00.

Insider Activity at TFS Financial

In other news, COO Andrew J. Rubino sold 5,000 shares of the stock in a transaction on Monday, November 24th. The shares were sold at an average price of $14.23, for a total transaction of $71,150.00. Following the completion of the sale, the chief operating officer owned 19,126 shares of the company’s stock, valued at $272,162.98. This represents a 20.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Cathy W. Zbanek sold 20,000 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $14.13, for a total transaction of $282,600.00. Following the sale, the insider owned 53,197 shares in the company, valued at approximately $751,673.61. The trade was a 27.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 47,600 shares of company stock worth $665,316 over the last ninety days. 0.72% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Legal & General Group Plc boosted its position in TFS Financial by 1.3% during the 2nd quarter. Legal & General Group Plc now owns 60,358 shares of the bank’s stock worth $782,000 after acquiring an additional 789 shares during the last quarter. Prasad Wealth Partners LLC raised its holdings in shares of TFS Financial by 9.0% in the fourth quarter. Prasad Wealth Partners LLC now owns 11,781 shares of the bank’s stock valued at $158,000 after purchasing an additional 971 shares during the last quarter. Osaic Holdings Inc. lifted its position in shares of TFS Financial by 5.7% in the second quarter. Osaic Holdings Inc. now owns 19,762 shares of the bank’s stock worth $256,000 after purchasing an additional 1,057 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in TFS Financial by 9.5% during the third quarter. Ameriprise Financial Inc. now owns 13,202 shares of the bank’s stock worth $174,000 after purchasing an additional 1,147 shares during the last quarter. Finally, Treasurer of the State of North Carolina increased its stake in TFS Financial by 5.9% in the 2nd quarter. Treasurer of the State of North Carolina now owns 24,472 shares of the bank’s stock valued at $317,000 after buying an additional 1,353 shares during the last quarter. 9.81% of the stock is currently owned by institutional investors.

TFS Financial Stock Down 7.8%

The firm’s 50-day simple moving average is $14.04 and its 200 day simple moving average is $13.57. The company has a debt-to-equity ratio of 2.57, a quick ratio of 1.53 and a current ratio of 1.54. The stock has a market capitalization of $3.80 billion, a P/E ratio of 42.41 and a beta of 0.73.

TFS Financial Company Profile

TFS Financial Corporation is a bank holding company for TFS Capital Bank, headquartered in Austin, Texas. The company offers commercial banking and specialty finance solutions designed to meet the unique needs of small and mid-sized businesses. Through its bank charter, TFS Financial provides a full suite of deposit products alongside a range of lending options tailored to growing enterprises.

The bank’s lending portfolio includes equipment financing, working capital lines of credit, and term loans structured to support capital expenditures and operational needs.