The Lloyds Banking Group plc (LYG) shares are trading at lower $1.48. while the current analyst price target stands at $1.38.
To add more color to this target, the company’s high over the last year is $3.58 and the low is $1.27. Over the last 52 weeks, LYG is down -58.66% while the S&P 500 is up 0.81%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, LYG reported a profit of $-16.26 billion. Lloyds Banking Group plc also saw revenues decrease to $6.64 billion. In addition, LYG has free cash flow of $0.0 as of 03-2020.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. LYG has a short ratio of 0.60 and outstanding shares of 24.00B.
LYG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 5.5 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.30. Investors should also keep an eye on sector updates as LYG has historically followed its peers on positive news.
All told, Lloyds Banking Group plc LYG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, LYG represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Lloyds Banking Group plc LYG is now commanding a market cap of 27.18B and a float of 17.43B. LYG is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of LYG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in LYG, either long or short, and we have not been compensated for this article.