Lloyds Banking Group PLC (ADR) (NYSE:LYG): Stock Moving Towards 52-week High


Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – Lloyds Banking Group PLC (ADR) (NYSE:LYG)’s stock yesterday jumped 5.42% and closed at $5.45. At this price the stock is trading 5.38% below its 52 week high of $5.76. Yesterday the stock traded with significant volume of 4.41 million shares against its 30 day average volume of 2.98 million shares.

The Stock Booster:

Lloyds Banking Group has made steady progress in recent months and government stake in the Group now accounts for 25%. The Group was bailed out during financial crisis of 2008. Yesterday the Group announced 22% increase in its 1Q14 profit after adjustments. The strong profit is expected to put the Group back on the track where it may start paying dividends after a gap of six years.

Lloyds Banking Group PLC (ADR) (NYSE:LYG) reported profit before tax of $3.04 billion or GBP 1.8 billion after adjustments for 1Q14 as compared to GBP 1.48 billion in 1Q13. The adjusted profit figure for 1Q14 was at par with street expectations of approximately GBP 1.8 billion. The Group reported net profit of GBP 1.15 billion in 1Q14 as compared to GBP 1.53 billion reported during 1Q13 which included GBP 776 million of one-time gains from sell of most of its gilts portfolio.

Analyst Update:

Analysts at TheStreet maintain “hold” rating for the stock of Lloyds Banking Group PLC (ADR) (NYSE:LYG) as it considers the Group’s improved return on equity (ROE) in 1Q14 as compared to 1Q13 as a modest strength in the organization. However, analysts also noted that the Group’s ROE considerably “trails” when compared with the S&P 500 and the industry average.

Analysts at TheStreet reported, “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.”

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.