Lloyds Banking Group (NYSE:LYG) Shares Gap Down - What's Next?

Key Points

• Lloyds Banking Group's shares gapped down on Friday, opening at $4.28 after closing at $4.47, with the last traded price at $4.31.
• The company has received several upgrades from analysts, with a current average rating of "Moderate Buy" and one analyst rating it as a Strong Buy.
• Lloyds recently announced a dividend of $0.0655 per share, reflecting a yield of 370.0%, with a dividend payout ratio of 32.50%.

Lloyds Banking Group PLC (NYSE:LYG - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $4.47, but opened at $4.28. Lloyds Banking Group shares last traded at $4.31, with a volume of 711,652 shares changing hands.

Analyst Ratings Changes

LYG has been the subject of a number of research analyst reports. Morgan Stanley reissued an "overweight" rating on shares of Lloyds Banking Group in a report on Monday, August 4th. Wall Street Zen lowered Lloyds Banking Group from a "buy" rating to a "hold" rating in a report on Saturday. JPMorgan Chase & Co. upgraded Lloyds Banking Group from an "underweight" rating to a "neutral" rating in a research note on Friday, August 1st. Royal Bank Of Canada raised shares of Lloyds Banking Group from a "sector perform" rating to an "outperform" rating in a research report on Monday, August 4th. Finally, Keefe, Bruyette & Woods raised Lloyds Banking Group from a "hold" rating to a "moderate buy" rating in a research note on Thursday, July 17th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy".

Lloyds Banking Group Price Performance

The company has a 50 day moving average price of $4.31 and a 200 day moving average price of $4.01. The firm has a market cap of $63.98 billion, a PE ratio of 10.69, a price-to-earnings-growth ratio of 0.66 and a beta of 1.05. The company has a current ratio of 1.44, a quick ratio of 0.53 and a debt-to-equity ratio of 1.68.

Lloyds Banking Group (NYSE:LYG - Get Free Report) last posted its earnings results on Thursday, July 24th. The financial services provider reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.10 by $0.04. Lloyds Banking Group had a return on equity of 9.28% and a net margin of 17.51%.The firm had revenue of $6.13 billion for the quarter, compared to analyst estimates of $4.86 billion. On average, sell-side analysts expect that Lloyds Banking Group PLC will post 0.27 EPS for the current year.

Lloyds Banking Group Cuts Dividend

The business also recently announced a semi-annual dividend, which will be paid on Friday, September 19th. Stockholders of record on Monday, August 4th will be given a $0.0655 dividend. The ex-dividend date of this dividend is Monday, August 4th. This represents a dividend yield of 370.0%. Lloyds Banking Group's dividend payout ratio is presently 32.50%.

Hedge Funds Weigh In On Lloyds Banking Group

A number of hedge funds have recently bought and sold shares of LYG. Riversedge Advisors LLC boosted its stake in Lloyds Banking Group by 10.5% in the second quarter. Riversedge Advisors LLC now owns 25,680 shares of the financial services provider's stock valued at $109,000 after acquiring an additional 2,433 shares during the period. Jackson Thornton Wealth Management LLC boosted its stake in Lloyds Banking Group by 20.4% in the first quarter. Jackson Thornton Wealth Management LLC now owns 15,168 shares of the financial services provider's stock valued at $57,000 after acquiring an additional 2,573 shares during the period. Drive Wealth Management LLC raised its holdings in shares of Lloyds Banking Group by 6.8% during the second quarter. Drive Wealth Management LLC now owns 41,065 shares of the financial services provider's stock valued at $175,000 after buying an additional 2,599 shares during the last quarter. Brighton Jones LLC boosted its position in shares of Lloyds Banking Group by 16.2% during the second quarter. Brighton Jones LLC now owns 18,778 shares of the financial services provider's stock worth $80,000 after buying an additional 2,613 shares during the period. Finally, Perigon Wealth Management LLC boosted its position in shares of Lloyds Banking Group by 4.5% during the first quarter. Perigon Wealth Management LLC now owns 61,411 shares of the financial services provider's stock worth $235,000 after buying an additional 2,617 shares during the period. 2.15% of the stock is currently owned by institutional investors and hedge funds.

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.