UK stock report - Barclays
Barclays down 2.5% in 2 days August 18, 2017 16:30 BST
NEWS BITES - EUROPE
Barclays PLC (L:BARC), the 3rd largest Bank by market cap in the United Kingdom, extended its slide on Friday, shedding an additional GBX1.60 (0.8%) to close at GBX195.65. The shares have dropped GBX5.10 (2.5%) over the past two trading days, compared with the FTSE 100 Index which fell 109.0 points (1.5%) in the two days for a relative price change of -1.1%. Cumulative volume in the 2 days was 0.8 times the average 2-day volume of 44.4 million shares.
BARCLAYS BEARISH SIGNALS
+ The relative yield of the stock, defined by its yield of 1.5%, divided by average yield of dividend yielding stocks in the FTSE 100 Index of 4.0% is 38.6%. This suggests the stock is overvalued in dividend yield terms.
+ Total Liabilities/EBITDA of 353.5 which compares unfavourably with the Joseph Piotroski benchmark of 5.
+ Net profit margin has averaged 6.7% in the last 3 years. This is lower than the sector average of 19.8% and suggests a low margin of safety.
+ As per the Du Pont analysis, Return on Equity is less than stellar at 4.0%. This is computed as net profit margin of 15.4% times asset turnover [sales/assets] of 0.01 times leverage factor [total assets/shareholders' equity] of 18.7.
1.2 Overvaluation [compared with sector average]:
+ Return on Equity 4.0% [4.6%].
+ Return on Assets 0.2% [0.4%].
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 201.61 minus the 26-day EMA of 203.66 is negative 2.05 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.
1.4 Low Performance Indicators:
|Description||Value||Rank In Market|
|Total Debt to Equity||1.5||In Bottom Quartile|
|Return on Assets [ROA] %||0.2||In Bottom 1%|
BARCLAYS BULLISH SIGNALS
Undervaluation [compared with sector average]:
+ Price to Book of 0.6 [1.0].
+ Dividend yield of 1.5% [1.0%].
+ The present value of GBP1,000 (PV1000) invested one year ago in Barclays is GBP1,251, comprising a capital gain of GBP234 and dividend reinvested of GBP17.
|FTSE 100 Index||1,002||984||1,066|
+ The present value of GBP1,000 (PV1000) invested five years ago in Barclays is GBP1,403, including a capital gain of GBP238 and dividend reinvested of GBP164.
+ 5 years Multiplier in GBP = 1.403x
+ Compound Annual Growth Rate (CAGR) in GBP = 7.0%
Present Value of USD1,000 invested 5 years ago:
+ The present value of USD1,000 (PV1000) invested five years ago in Barclays is $US1,151, including a capital gain of $US16 and dividend reinvested of $US135.
+ 5 years ago GBP 1 equalled USD 1.57
+ 5 years Multiplier in USD = 1.151x
+ Compound Annual Growth Rate (CAGR) in USD = 2.9%
Aug 18, 2017: GBP 1 equals USD 1.29
2.3 Oversold/Bullish/Support Signals:
+ At GBX195.65 the price is below the lower Bollinger band support of GBX195.71, indicating an upside for it to return to the band.
+ The stock is oversold according to the Williams % R indicator of -86.0, suggesting the price is close to its 14-day low of GBX193.30.
+ The Stochastic indicator of 9.4 has pierced the oversold line of 20; this indicates the price is close to its 14-day low and is likely to revert to an uptrend.
2.4 High Performance Indicator:
|Description||Value||Rank In Market|
|Today's Turnover||GBP64.6 million (US$83.2 million)||In Top 2%|
PRICE VOLUME DYNAMICS
+ Barclays is at a discount of 25.8% to its 12-month high of GBX263.75 on December 02, 2016. It is also at a premium of 27.1% to the 12-month low of GBX153.87 on September 30, 2016.
3.2 Moving Annual Return
|BARC||Close (GBX)||Dividends (GBX)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||158.51||5.5||(39.5)||2.1||(37.4)|
|2 Yrs ago||261.92||6.5||29.1||3.2||32.3|
|3 Yrs ago||202.87||5.61||(16.1)||2.3||(13.8)|
|4 Yrs ago||241.84||6.67||53.1||4.2||57.3|
+ Beta: the Beta of Barclays stock is 1.3. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.
3.4 Aggregate Volumes, Prices and Turnover Period:
[Volume Index or VI in brackets; 1 is average]
+ London: BARC.L 33,001,744 [VI of 0.7] volume 91.86% of aggregate. Price: GBX195.65.
+ New York: BCS.NYSE 2,855,200 [VI of 0.6] volume 7.95% of aggregate. Price: $US10.02. Using the current exchange rate of USD1 equals 77.6GBX, The shares are at a 297.4% premium to the close price on London.
+ Xetra: BCY.ETR 62,205 [VI of 0.8] volume 0.17% of aggregate. Price: EUR2.18. Using the current exchange rate of EUR1 equals 91.02GBX, The shares are at a 1.4% premium to the close price on London.
+ Aggregate volume: there were 35.9 million shares of Barclays worth GBP86.9 million traded today. The aggregate volume was 0.7 times average trading of 49.1 million shares.
4.1 Global Rank [out of 47,594 stocks] and Rank in the Europe Region [out of 8,387 stocks]
|Description||Value||Global Rank||In Eur Region|
|Total Assets (US$)||1,563.1B||32||8|
|Net Profit (US$)||2.7B||351||79|
|Return on Equity %||4.0||22,100||3,827|
|Net Profit Margin %||15.4||7,431||1,306|
|Price to Book||0.6||5,205||975|
|PV$1000 (1Year) US$*||1,239||12,850||2,785|
|US$* Change (1Year) %||23.3||12,819||2,775|
* 1 year ago GBP 1 = USD 1.3
Aug 18, 2017: GBP 1 equals USD 1.29
4.2 Independent Ratings
Barclays PLC was ranked 13 in the Brand Finance list of the world's 500 Valuable Banking brands by brand value in 2015; unchanged over a year from the same rank 13 in 2014. Brand Finance valued the brand at US$14,179 million and ranked it Number 13 in Europe. Most of the brand valuation was for services such as credit cards.
It was ranked 15 in SNL's list of Top 100 Banks by Total Assets in 2016; a deterioration over a year from rank 10 in 2015.
It is the 166th largest by revenue in the Forbes Global 2000.
It was ranked 367 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2014. It had outstanding scores of 11.4% in Energy productivity, 9.2% in Water productivity and 7.6% in Carbon productivity.
It is the 488th largest by profit in the FT Global 500.
It is placed 468/1238 in BSS News Bites' ranking of United Kingdom performers in the past year, a percentile ranking of 62.
5.1 Financials Summary
|Year ended||Dec 2016||Dec 2015||Dec 2014|
|Sales (USD B)||18.9||18.1||42.5|
|Pretax (USD B)||4.2||1.5||2.9|
5.2 Annual Report for the year ended December 31, 2016 (year-on-year comparisons with previous corresponding period)-
Barclays Revenue up 4.2%
Barclays (L:BARC) reported total revenue for the year-ended 31 December 2016 of GBP14.5b ($US17.9b), up 4.2% from GBP14.0b ($US20.7b) in the previous year.
+ Retained earnings to total assets down 9% to 2.5%.
5.3 Trailing 12 Months Dividends
|Trailing 12 Months To||Value (GBX)|
|18 Aug 2017||3|
|18 Aug 2016||5.5|
|18 Aug 2015||6.5|
|18 Aug 2014||5.61|
|18 Aug 2013||6.67|
Barclays PLC provides various financial products and services in Europe, the United States, Africa, and Asia. It offers retail and commercial banking, credit cards, investment banking, wealth management, and investment management services. The companys products include current account and savings products, Woolwich branded mortgages, unsecured loans, protection products, general insurance, credit cards, Sharia-compliant products, installment finance and commercial property finance, commercial loans, and personal loans. It also offers money transmission, international and private banking, investment management, fiduciary, and brokerage services, as well as payment solutions and mobile banking services. In addition, the company provides fixed income, currency and commodities, foreign exchange, emerging markets, money markets, and credit services; equities, which include cash and equity derivatives and prime services; investment banking products and services that comprise financial advisory, and equity and debt underwriting; and advisory services. It serves individual, commercial, corporate, institutional, retail, and mass affluent customers. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1896 and is headquartered in London, the United Kingdom.
6.2 Industry & Sector
|Classification Level||Name of Sector|
|Industry Group||Banking Services|
|Business Sector||Banking & Investment Services|
6.3 Top Management
The chairman is John Mcfarlane and the chief executive officer is Jes Staley.
6.4 Issued Capital
Based on 17,035,227,684 issued shares the market capitalisation is GBP33.3 billion (US$42.9 billion).
REPORTED BUYING AND SELLING
Insider Buying and Selling
May 03: Barclays director buys
Barclays (L:BARC) director Ian Cheshire bought 50,000 shares worth GBP105,000 ($US135,671) on May 02. The purchase price was GBP2.10. The shares hit an 11-day low on the day.
May 03: Barclays director sells
Barclays (L:BARC) director Ashok Vaswani sold 650,230 shares worth GBP1,378,488 ($US1,781,144) on April 28. The selling price was GBP2.12. The shares hit a seven-day low on the day.
March 20: Barclays director sells
Barclays (L:BARC) director C. S. Venkatakrishnan sold 417,676 shares worth GBP958,984 ($US1,184,058) on March 17. The selling price was GBP2.30. The shares hit a one-month high on the day.
8.1 Latest Buzz
|Aug 17, 2017||Harley-Davidson, Inc. (HOG) Given New $45.00 Price Target at Barclays PLC||BNB Daily (blog)|
|Aug 17, 2017||Informa Plc\u0026#39; s (LON:INF) Overweight Rating Reiterated at Barclays PLC||ExpressNewsline|
|Aug 17, 2017||Barclays PLC (TAPR) Reaches Active Mover List||Morgan Research|
|Aug 17, 2017||Earnings Analysis of: Barclays PLC (BCS)||StandardOracle|
|Aug 17, 2017||Barclays PLC Begins Coverage on Keysight Technologies Inc. (NYSE:KEYS)||The Cerbat Gem|
|Aug 17, 2017||Transocean Ltd. (NYSE:RIG) Given a $9.00 Price Target at Barclays PLC||TheOlympiaReport|
|Aug 15, 2017||Barclays PLC (JJU) Rank Correlation Gaining Momentum||Lenox Ledger|
|Aug 14, 2017||2 growth stocks I\u0026#39; d always buy over Barclays plc||Motley Fool UK|
|Aug 14, 2017||GlaxoSmithKline plc (GSK) Receives Equal weight Rating from Barclays PLC||Week Herald|
8.2 Corporate Wire
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August 18: Barclays: Form 8 (DD) - VANTIV INC
1. KEY INFORMATION (a) Full name of discloser: Barclays PLC. (b) Owner or controller of interest and short positions disclosed, if different from 1(a): (c) Name of offeror/offeree in relation to whose VANTIV INC relevant securities this form relates: (d) Status of person making the disclosure: CONNECTED TO OFFEREE (e) Date position held/dealing undertaken: 17 August 2017 (f) In addition to the company in 1(c) above, is the discloser making NO disclosures in respect of any other party to the offer
August 17: Barclays: Holding(s) in Company
TR-1: Standard form for notification of major holdings
August 17: Barclays: Form 8 (DD) - VANTIV INC
August 17: Barclays: Scrip Reference Share Price
Barclays PLC (the 'Company') offers shareholders the opportunity to receive ordinary shares of 25 pence each in the Company ('Ordinary Shares'), credited as fully paid, in place of cash dividends by participating in its Scrip Dividend Programme (the 'Programme').
On 28 July 2017, the Company announced an interim dividend of 1.0 pence per Ordinary Share for the year ending 31 December 2017, payable on 18 September 2017 (the 'Interim Dividend').
August 15: Barclays: Form 8 (DD) - VANTIV INC
1. KEY INFORMATION (a) Full name of discloser: Barclays PLC. (b) Owner or controller of interest and short positions disclosed, if different from 1(a): (c) Name of offeror/offeree in relation to whose VANTIV INC relevant securities this form relates: (d) Status of person making the disclosure: CONNECTED TO OFFEREE (e) Date position held/dealing undertaken: 14 August 2017 (f) In addition to the company in 1(c) above, is the discloser making NO disclosures in respect of any other party to the offer?
Physical Address: 1 Churchill Place, Canary Wharf, London, E14 5HP, United Kingdom
State/Province/Country: United Kingdom
Country of Incorporation: United Kingdom
Exchange: London Stock Exchange
L:BARC; LON:BARC; LN:BARC; BARC.L