Weak On High Volume: Lloyds Banking Group (LYG)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Lloyds Banking Group as such a stock due to the following factors:
- LYG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.6 million.
- LYG has traded 5.9 million shares today.
- LYG is trading at 10.29 times the normal volume for the stock at this time of day.
- LYG is trading at a new low 7.30% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on LYG:
Lloyds Banking Group plc provides banking and financial services to individual and business customers in the United Kingdom and internationally. The company operates through four segments: Retail, Commercial Banking, Consumer Finance, and Insurance. The stock currently has a dividend yield of 4.5%. Currently there are 2 analysts that rate Lloyds Banking Group a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Lloyds Banking Group has been 5.4 million shares per day over the past 30 days. Lloyds Banking Group has a market cap of $53.1 billion and is part of the financial sector and banking industry. Shares are down 37.2% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Lloyds Banking Group as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 46.3% when compared to the same quarter one year ago, falling from $1,355.81 million to $727.68 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, LLOYDS BANKING GROUP PLC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- LLOYDS BANKING GROUP PLC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LLOYDS BANKING GROUP PLC reported lower earnings of $0.04 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($0.38 versus $0.04).
- The revenue fell significantly faster than the industry average of 0.0%. Since the same quarter one year prior, revenues fell by 30.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Compared to where it was trading one year ago, LYG is down 45.31% to its most recent closing price of 2.97. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
- You can view the full Lloyds Banking Group Ratings Report.
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