Investors Purchase Large Volume of Lloyds Banking Group Put Options (NYSE:LYG)

Key Points

• Unusually high bearish options activity: Traders purchased 8,139 put options on Lloyds Banking Group, 735% above its average daily put volume.
• Shares fell 1.8% to $6.17 after the company reported quarterly earnings of $0.13 per share, missing the $0.14 analyst consensus, while revenue also came in below expectations.
• Analyst sentiment remains mixed: Recent firms have downgraded the stock to “hold,” although the overall consensus rating is still “Moderate Buy,” and several institutional investors increased their positions.

Lloyds Banking Group PLC (NYSE:LYG - Get Free Report) was the target of unusually large options trading activity on Monday. Traders acquired 8,139 put options on the stock. This is an increase of 735% compared to the average daily volume of 975 put options.

Lloyds Banking Group Trading Down 1.8%

Shares of LYG traded down $0.12 during midday trading on Monday, hitting $6.17. The stock had a trading volume of 1,993,345 shares, compared to its average volume of 20,068,344. The company has a debt-to-equity ratio of 2.12, a current ratio of 1.52 and a quick ratio of 0.56. The stock's 50 day moving average is $5.82 and its 200 day moving average is $5.58. Lloyds Banking Group has a 1 year low of $4.20 and a 1 year high of $6.34. The firm has a market cap of $89.81 billion, a PE ratio of 14.34, a price-to-earnings-growth ratio of 0.63 and a beta of 0.87.

Lloyds Banking Group (NYSE:LYG - Get Free Report) last issued its earnings results on Thursday, July 30th. The financial services provider reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.14 by ($0.01). Lloyds Banking Group had a net margin of 24.97% and a return on equity of 10.94%. The firm had revenue of $6.57 billion for the quarter, compared to the consensus estimate of $6.86 billion. As a group, analysts forecast that Lloyds Banking Group will post 0.54 EPS for the current fiscal year.

Lloyds Banking Group Cuts Dividend

The business also recently declared a dividend, which will be paid on Friday, September 25th. Shareholders of record on Monday, August 10th will be given a dividend of $0.084 per share. This represents a yield of 272.0%. The ex-dividend date of this dividend is Monday, August 10th. Lloyds Banking Group's dividend payout ratio (DPR) is currently 37.21%.

Institutional Trading of Lloyds Banking Group

Several institutional investors have recently bought and sold shares of the business. WCM Investment Management LLC purchased a new position in shares of Lloyds Banking Group during the 1st quarter worth $128,228,000. Janney Montgomery Scott LLC grew its stake in Lloyds Banking Group by 2,413.7% during the 1st quarter. Janney Montgomery Scott LLC now owns 3,113,464 shares of the financial services provider's stock worth $15,661,000 after purchasing an additional 2,989,604 shares in the last quarter. UBS Group AG increased its holdings in shares of Lloyds Banking Group by 53.9% in the 3rd quarter. UBS Group AG now owns 6,614,695 shares of the financial services provider's stock valued at $30,031,000 after acquiring an additional 2,317,927 shares during the last quarter. Renaissance Technologies LLC raised its position in shares of Lloyds Banking Group by 386.4% during the 1st quarter. Renaissance Technologies LLC now owns 2,528,180 shares of the financial services provider's stock worth $12,717,000 after acquiring an additional 2,008,380 shares in the last quarter. Finally, Jane Street Group LLC lifted its stake in Lloyds Banking Group by 178.3% during the second quarter. Jane Street Group LLC now owns 2,261,115 shares of the financial services provider's stock worth $9,610,000 after purchasing an additional 1,448,691 shares during the last quarter. 2.15% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

LYG has been the topic of several recent analyst reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Lloyds Banking Group in a report on Friday. Wall Street Zen cut Lloyds Banking Group from a "buy" rating to a "hold" rating in a research note on Saturday, July 4th. Morgan Stanley reiterated an "overweight" rating on shares of Lloyds Banking Group in a report on Tuesday, June 30th. Keefe, Bruyette & Woods cut Lloyds Banking Group from a "moderate buy" rating to a "hold" rating in a research note on Friday, July 17th. Finally, UBS Group upgraded shares of Lloyds Banking Group from a "neutral" rating to a "buy" rating in a report on Thursday, April 30th. Six investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy".

About Lloyds Banking Group

Lloyds Banking Group plc is a UK-based banking and financial services company that provides a broad range of retail, commercial and insurance products. Its principal consumer-facing brands include Lloyds Bank, Halifax and Bank of Scotland, through which it offers current accounts, savings, mortgages, credit cards and personal loans. The group also delivers services to small and medium-sized enterprises (SMEs) and larger corporate clients, supplying business accounts, lending, payments and cash-management solutions.

In addition to core banking, Lloyds operates a significant wealth and insurance arm under the Scottish Widows brand, offering life insurance, pensions, investment and retirement planning products.

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