Lloyds Banking Group (NYSE:LYG) Sets New 1-Year High - Still a Buy?

Key Points

• Lloyds Banking Group shares reached a new 52-week high of $4.42, showing significant trading activity with over 17 million shares exchanged.
• Recent analyst ratings have improved, with Wall Street Zen upgrading the stock from "hold" to "buy", and the average rating now classified as "Moderate Buy."
• The company reported quarterly earnings exceeding estimates, with $0.14 earnings per share against a forecast of $0.10, and generated revenue significantly higher than expected at $6.13 billion.

Shares of Lloyds Banking Group PLC (NYSE:LYG - Get Free Report) hit a new 52-week high on Friday . The stock traded as high as $4.41 and last traded at $4.42, with a volume of 17407920 shares trading hands. The stock had previously closed at $4.22.

Analysts Set New Price Targets

LYG has been the subject of a number of analyst reports. Wall Street Zen raised Lloyds Banking Group from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Keefe, Bruyette & Woods raised Lloyds Banking Group from a "hold" rating to a "moderate buy" rating in a research note on Thursday, July 17th. Three research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Lloyds Banking Group presently has an average rating of "Moderate Buy".

Lloyds Banking Group Trading Up 3.4%

The firm has a market cap of $65.50 billion, a P/E ratio of 10.91, a PEG ratio of 0.67 and a beta of 0.99. The firm's fifty day moving average is $4.19 and its two-hundred day moving average is $3.78. The company has a quick ratio of 0.53, a current ratio of 1.44 and a debt-to-equity ratio of 1.68.

Lloyds Banking Group (NYSE:LYG - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The financial services provider reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.04. The business had revenue of $6.13 billion for the quarter, compared to analysts' expectations of $4.86 billion. Lloyds Banking Group had a net margin of 17.51% and a return on equity of 9.28%. Analysts predict that Lloyds Banking Group PLC will post 0.27 earnings per share for the current fiscal year.

Lloyds Banking Group Cuts Dividend

The company also recently disclosed a semi-annual dividend, which will be paid on Friday, September 19th. Shareholders of record on Monday, August 4th will be given a dividend of $0.0655 per share. The ex-dividend date of this dividend is Monday, August 4th. This represents a yield of 370.0%. Lloyds Banking Group's dividend payout ratio (DPR) is currently 55.00%.

Hedge Funds Weigh In On Lloyds Banking Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in LYG. Goldman Sachs Group Inc. raised its position in shares of Lloyds Banking Group by 6.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 24,154,117 shares of the financial services provider's stock worth $92,269,000 after purchasing an additional 1,397,163 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Lloyds Banking Group by 2.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 16,404,259 shares of the financial services provider's stock valued at $44,620,000 after purchasing an additional 453,326 shares during the period. Northern Trust Corp grew its stake in shares of Lloyds Banking Group by 34.7% during the 4th quarter. Northern Trust Corp now owns 15,604,325 shares of the financial services provider's stock valued at $42,444,000 after purchasing an additional 4,021,039 shares during the period. Envestnet Asset Management Inc. grew its stake in shares of Lloyds Banking Group by 9.0% during the 1st quarter. Envestnet Asset Management Inc. now owns 10,492,898 shares of the financial services provider's stock valued at $40,083,000 after acquiring an additional 863,347 shares during the period. Finally, Millennium Management LLC grew its stake in shares of Lloyds Banking Group by 15.5% during the 1st quarter. Millennium Management LLC now owns 8,199,299 shares of the financial services provider's stock valued at $31,321,000 after acquiring an additional 1,100,359 shares during the period. Hedge funds and other institutional investors own 2.15% of the company's stock.

About Lloyds Banking Group

Lloyds Banking Group plc, together with its subsidiaries, provides a range of banking and financial services in the United Kingdom and internationally. It operates in three segments: Retail; Commercial Banking; and Insurance, Pensions and Investments. The Retail segment offers a range of financial service products, including current accounts, savings, mortgages, motor finance, unsecured loans, leasing solutions, and credit cards to personal customers.

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