Barclays PLC (LON:BARC) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Barclays has a “Moderate Buy” consensus rating: Six of seven analysts recommend buying the shares, while one has a hold rating. The average 12-month price target is GBX 576.67, with recent targets ranging from GBX 510 to GBX 610.
• The shares opened at GBX 488.85, below the analyst consensus target, and Barclays reported quarterly EPS of GBX 30.70, a 10.11% return on equity and a 25.61% net margin.
• Potential catalysts and risks remain mixed: Higher European interest rates and a stronger equity market could support Barclays’ margins and capital-markets businesses, while reported trading-platform outages and legal scrutiny linked to an alleged £90 million Ponzi scheme pose operational and reputational risks.

Barclays PLC (LON:BARC - Get Free Report) has been assigned an average rating of "Moderate Buy" from the seven research firms that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12-month price target among analysts that have updated their coverage on the stock in the last year is GBX 576.67.

Several research analysts have recently weighed in on the company. Jefferies Financial Group upped their target price on Barclays from GBX 590 to GBX 600 and gave the stock a "buy" rating in a research note on Wednesday, September 2nd. JPMorgan Chase & Co. boosted their price objective on Barclays from GBX 600 to GBX 610 and gave the stock an "overweight" rating in a research note on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a GBX 570 target price on shares of Barclays in a research report on Wednesday, July 29th. Citigroup lifted their price objective on Barclays from GBX 505 to GBX 510 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 550 target price on shares of Barclays in a report on Wednesday, August 12th.

Barclays Stock Performance

Shares of Barclays stock opened at GBX 488.85 on Monday. The firm has a 50-day simple moving average of GBX 507.91 and a two-hundred day simple moving average of GBX 464.43. Barclays has a fifty-two week low of GBX 353.55 and a fifty-two week high of GBX 538.30. The company has a market cap of £65.61 billion, a P/E ratio of 10.12, a price-to-earnings-growth ratio of 1.15 and a beta of 0.87.

Barclays (LON:BARC - Get Free Report) last posted its earnings results on Tuesday, July 28th. The financial services provider reported GBX 30.70 EPS for the quarter. Barclays had a return on equity of 10.11% and a net margin of 25.61%. Equities research analysts forecast that Barclays will post 39.1062802 EPS for the current year.

Insider Buying and Selling

In other news, insider Anna Cross sold 461,588 shares of the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of GBX 521, for a total value of £2,404,873.48. Also, insider Robert Berry purchased 1,908 shares of the stock in a transaction dated Tuesday, July 28th. The shares were acquired at an average price of GBX 497 per share, with a total value of £9,482.76. Over the last three months, insiders have bought 27,498 shares of company stock valued at $13,666,506. 0.34% of the stock is currently owned by company insiders.

Barclays News Summary

Here are the key news stories impacting Barclays this week:

• Positive Sentiment: Higher-rate outlook could support net interest income. Barclays expects the European Central Bank to raise rates by another 25 basis points in December as inflation and energy-price pressures persist. Higher rates can benefit banks’ lending margins, although they may also weaken loan demand and increase credit-risk concerns. Global Market: Barclays expects ECB to raise rates again in December as inflation risks persist
• Positive Sentiment: Barclays’ bullish equity-market view may reinforce confidence in its capital-markets franchise. The bank raised its year-end S&P 500 target to 7,950 and lifted its aggregate earnings-per-share forecast to $365, citing strong technology earnings and artificial-intelligence investment. A stronger equity market could support Barclays’ investment-banking, trading and wealth-management activity. Barclays Lifts S&P 500 Year-End Target to 7,950 as Overall EPS Estimates Jump to $365
• Neutral Sentiment: Senior-executive share dealings were disclosed. The filing concerns transactions by two executives and appears to be routine compliance reporting; no strategic change or financial impact was identified. Barclays Reports Share Dealings by Senior Executives
• Neutral Sentiment: Investor-relations activity remains active. Cboe Global Markets is scheduled to present at Barclays’ Global Financial Services Conference on September 16, but the event itself provides no direct update to Barclays’ earnings or strategy. Cboe Global Markets to Present at the Barclays Global Financial Services Conference
• Negative Sentiment: Reports of repeated failures in Barclays’ Beowulf internal risk platform raise operational and control concerns. Traders reportedly experienced outages during busy markets, potentially increasing execution, risk-management and reputational risks. Barclays traders flying blind as internal risk platform Beowulf keeps crashing during peak markets
• Negative Sentiment: Legal scrutiny over Barclays’ alleged role in a £90 million Ponzi scheme could weigh on sentiment. Potential litigation, regulatory action, penalties or reputational damage represent downside risks, although the reports do not establish final liability. Barclays faces legal scrutiny over role in £90m Ponzi scheme

Barclays Company Profile

Barclays PLC provides various financial services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International division segments. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. In addition, the company engages in securities dealing activities. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985.

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