Lloyds Banking Group (LYG): Heavy Pre-Market Activity

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Lloyds Banking Group ( LYG) as a pre-market mover with heavy 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 $20.6 million.
  • LYG traded 597,295 shares today in the pre-market hours as of 8:35 AM, representing 15.9% of its average daily volume.

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More details on LYG:

Lloyds Banking Group plc provides banking and financial services to personal, commercial, and corporate customers in the United Kingdom and internationally. The company operates in four divisions: Retail; Commercial Banking; Wealth, Asset Finance, and International; and Insurance. LYG has a PE ratio of 11.9. Currently there is 1 analyst that rates Lloyds Banking Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Lloyds Banking Group has been 3.9 million shares per day over the past 30 days. Lloyds Banking Group has a market cap of $100.3 billion and is part of the financial sector and banking industry. Shares are up 5.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lloyds Banking Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, LYG's share price has jumped by 64.80%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • LLOYDS BANKING GROUP PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LLOYDS BANKING GROUP PLC continued to lose money by earning -$0.13 versus -$0.26 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus -$0.13).
  • LYG, with its decline in revenue, slightly underperformed the industry average of 1.2%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength 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.
  • 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 206.8% when compared to the same quarter one year ago, falling from -$638.33 million to -$1,958.58 million.

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