Does Lloyds Banking Group plc (LYG) offer a good opportunity for investors?

Lloyds Banking Group plc (NYSE: LYG) stock fell -3.65% on Friday to $2.11 against a previous-day closing price of $2.19. With 11.19 million shares changed hands, the volume of the stock remained heavier than its average volume of 10.05 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $2.1800 whereas the lowest price it dropped to was $2.1100. The 52-week range on LYG shows that it touched its highest point at $3.00 and its lowest point at $1.90 during that stretch. It currently has a 1-year price target of $2.90. With its current market cap of 36.50 billion, LYG has annualized dividend of $0.10 while the current yield stands at 4.88%. Beta for the stock currently stands at 1.27.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LYG was down-trending over the past week, with a drop of -0.47%, but this was up by 1.93% over a month. Three-month performance dropped to -0.47% while six-month performance fell -19.77%. The stock lost -7.05% in the past year, while it has lost -17.25% so far this year. EPS is expected to decline by -10.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.80%.

Float and Shares Shorts:

At present, 17.55 billion LYG shares are outstanding with a float of 16.83 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 9.43 million, which was 0.06% higher than short shares on Jun 14, 2022. In addition to Mr. Charles Alan Nunn as the firm’s Group Chief Exec. & Exec. Director, Mr. William Leon David Chalmers serves as its Group CFO & Exec. Director.

Institutional Ownership:

Through their ownership of 1.82% of LYG’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 1.80% of LYG, in contrast to 0.08% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in LYG with 0.17% of the stake, JPMorgan Securities LLC holds 29,638,264 shares worth 29,638,264. A second-largest stockholder of LYG, Macquarie Investment Management B, holds 28,282,843 shares, controlling over 0.17% of the firm’s shares. Mondrian Investment Partners Ltd. is the third largest shareholder in LYG, holding 25,967,456 shares or 0.15% stake. With a 0.01% stake in LYG, the DFA International Value Series is the largest stakeholder. A total of 1,844,768 shares are owned by the mutual fund manager. The Avantis International Equity ETF, which owns about 0.01% of LYG stock, is the second-largest Mutual Fund holder. It holds 1,746,100 shares valued at 3.49 million. Dimensional International Value E holds 0.01% of the stake in LYG, owning 1,557,704 shares worth 3.12 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LYG since 21 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LYG analysts setting a high price target of $3.82 and a low target of $2.20, the average target price over the next 12 months is $2.89. Based on these targets, LYG could surge 81.04% to reach the target high and rise by 4.27% to reach the target low. Reaching the average price target will result in a growth of 36.97% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LYG will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $0.37 being high and $0.31 being low. For LYG, this leads to a yearly average estimate of $0.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lloyds Banking Group plc surprised analysts by $0.03 when it reported $0.10 EPS against a consensus estimate of $0.07. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is $0.08. The average estimate for the next quarter is thus $0.09.

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