UK stock report - Barclays

UK

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.

SECTION 1

BARCLAYS BEARISH SIGNALS

1.1 Fundamentals:

+ 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%].

1.3 Technicals:

+ 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:

DescriptionValueRank In Market
Total Debt to Equity1.5In Bottom Quartile
Return on Assets [ROA] %0.2In Bottom 1%

SECTION 2

BARCLAYS BULLISH SIGNALS

2.1 Fundamentals:

Undervaluation [compared with sector average]:

+ Price to Book of 0.6 [1.0].

+ Dividend yield of 1.5% [1.0%].

2.2 Technicals:

+ 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.

PV10001-week1-month1-year
BARC.L9819631,251
FTSE 100 Index1,0029841,066

+ 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:

DescriptionValueRank In Market
Today's TurnoverGBP64.6 million (US$83.2 million)In Top 2%

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Volatility:

+ 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

BARCClose (GBX)Dividends (GBX)Capital Gain / (Loss) %% YieldAnnual Return %
August 18195.65323.41.925.3
1 Yr ago158.515.5(39.5)2.1(37.4)
2 Yrs ago261.926.529.13.232.3
3 Yrs ago202.875.61(16.1)2.3(13.8)
4 Yrs ago241.846.6753.14.257.3

3.3 Beta:

+ 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.

SECTION 4

RANKING

4.1 Global Rank [out of 47,594 stocks] and Rank in the Europe Region [out of 8,387 stocks]

DescriptionValueGlobal RankIn Eur Region
MCap (US$)42.9B29587
Total Assets (US$)1,563.1B328
Revenue (US$)18.7B726188
Net Profit (US$)2.7B35179
Return on Equity %4.022,1003,827
Net Profit Margin %15.47,4311,306
Price to Book0.65,205975
Yield %1.513,9082,575
PV$1000 (1Year) US$*1,23912,8502,785
US$* Change (1Year) %23.312,8192,775

* 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.

SECTION 5

BARCLAYS FINANCIALS

5.1 Financials Summary

Year endedDec 2016Dec 2015Dec 2014
Sales (USD B)18.918.142.5
Pretax (USD B)4.21.52.9
Net (USD)2.7B(63.6M)(225.9M)
EPS (GBP)--(0.01)

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.

Unfavourable Changes:

+ Retained earnings to total assets down 9% to 2.5%.

5.3 Trailing 12 Months Dividends

Trailing 12 Months ToValue (GBX)
18 Aug 20173
18 Aug 20165.5
18 Aug 20156.5
18 Aug 20145.61
18 Aug 20136.67

SECTION 6

BARCLAYS PROFILE

6.1 Activities

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 LevelName of Sector
Industry GroupBanking Services
IndustryBanks
Economic SectorFinancials
Business SectorBanking & 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).

SECTION 7

REPORTED BUYING AND SELLING

Insider Buying and Selling

Reported Buying:

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.

Reported Selling:

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.

SECTION 8

STOCK BUZZ

8.1 Latest Buzz

News DateHeadlinePublisher
Aug 17, 2017Harley-Davidson, Inc. (HOG) Given New $45.00 Price Target at Barclays PLCBNB Daily (blog)
Aug 17, 2017Informa Plc\u0026#39; s (LON:INF) Overweight Rating Reiterated at Barclays PLCExpressNewsline
Aug 17, 2017Barclays PLC (TAPR) Reaches Active Mover ListMorgan Research
Aug 17, 2017Earnings Analysis of: Barclays PLC (BCS)StandardOracle
Aug 17, 2017Barclays PLC Begins Coverage on Keysight Technologies Inc. (NYSE:KEYS)The Cerbat Gem
Aug 17, 2017Transocean Ltd. (NYSE:RIG) Given a $9.00 Price Target at Barclays PLCTheOlympiaReport
Aug 15, 2017Barclays PLC (JJU) Rank Correlation Gaining MomentumLenox Ledger
Aug 14, 20172 growth stocks I\u0026#39; d always buy over Barclays plcMotley Fool UK
Aug 14, 2017GlaxoSmithKline plc (GSK) Receives Equal weight Rating from Barclays PLCWeek Herald

8.2 Corporate Wire

To view Recent Company Headlines, click here

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?

Contact: 44-20-71161000

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

ISIN: GB0031348658

L:BARC; LON:BARC; LN:BARC; BARC.L

PermID: 4297546630

Barclays Plc

Source: www.BuySellSignals.com