BB&T shares gain the most in 27 months on Thursday, financial holding company to acquire SunTrust Banks for $28.2 billion

February 8, 2019 8:17 am

According to a statement by BB&T Corporation (BBT) on Thursday, it intends to acquire SunTrust Banks Inc in an all-stock deal valued at $28.24 billion, which as a result, would create the sixth largest bank in the United States in terms of assets and deposits.

The deal is expected to be finalized during the fourth quarter of 2019.

BB&T shares closed higher for the fifth time in the past eleven trading sessions in New York on Thursday. It has also been the sharpest daily surge since November 9th 2016. The stock went up 3.98% ($1.93) to $50.46, after touching an intraday high at $51.50, or a price level not seen since December 3rd ($51.77).

Shares of BB&T Corporation have risen 16.48% so far in 2019 compared with a 7.95% gain for the benchmark index, S&P 500 (SPX).

In 2018, BB&T Corp’s stock went down 12.87%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

Under the terms of the agreement, shareholders of SunTrust Banks Inc are to receive 1.295 BB&T shares for every share they own. SunTrust shareholders will own 43% of the combined bank, while shareholders of BB&T – 57%.

The combined entity is to be based in Charlotte, North Carolina and is to manage $324 billion in deposits, $301 billion in loans and $442 billion in assets.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding BB&T Corp’s stock price, have a median target of $53.00, with a high estimate of $59.00 and a low estimate of $47.00. The median estimate represents a 5.03% upside compared to the closing price of $50.46 on February 7th.

The same media also reported that 16 out of 27 surveyed investment analysts had rated BB&T Corp’s stock as “Hold”, while 8 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for BB&T Corporation (BBT) are presented as follows:

Central Pivot Point – $48.76
R1 – $49.65
R2 – $50.42
R3 – $51.31
R4 – $52.19

S1 – $47.99
S2 – $47.10
S3 – $46.33
S4 – $45.55

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