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.
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.”
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.