Lloyds Banking Group (NYSE:LYG) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down — Lloyds closed at $5.91 and opened at $5.62, last trading at $5.6850 on a volume of 2,225,567 shares.
• Analyst sentiment is mixed but leaning positive: six analysts rate the stock a Buy and five a Hold, giving an average rating of "Moderate Buy", with several recent downgrades and reaffirmations.
• Recent results: quarterly EPS of $0.12 beat the $0.11 consensus while revenue of $6.38B missed $6.52B, and the company declared a $0.134 dividend (ex-dividend April 10, pay May 29) reported as a 447.0% yield with a 30.95% payout ratio.

Lloyds Banking Group PLC (NYSE:LYG - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $5.91, but opened at $5.62. Lloyds Banking Group shares last traded at $5.6850, with a volume of 2,225,567 shares.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on LYG shares. Wall Street Zen cut shares of Lloyds Banking Group from a "buy" rating to a "hold" rating in a research report on Monday, October 20th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Lloyds Banking Group in a research report on Tuesday, October 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Lloyds Banking Group in a research note on Wednesday, January 28th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Lloyds Banking Group in a research report on Tuesday, February 3rd. Finally, Morgan Stanley restated an "overweight" rating on shares of Lloyds Banking Group in a research note on Monday, November 24th. Six research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy".

Lloyds Banking Group Trading Down 0.5%

The stock has a market cap of $86.63 billion, a PE ratio of 14.00, a P/E/G ratio of 0.60 and a beta of 0.87. The business has a 50 day moving average of $5.43 and a 200-day moving average of $4.86.

Lloyds Banking Group (NYSE:LYG - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The financial services provider reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.01. The firm had revenue of $6.38 billion during the quarter, compared to analysts' expectations of $6.52 billion. Lloyds Banking Group had a return on equity of 10.06% and a net margin of 24.30%. Research analysts expect that Lloyds Banking Group PLC will post 0.27 EPS for the current fiscal year.

Lloyds Banking Group Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Friday, May 29th. Investors of record on Friday, April 10th will be given a $0.134 dividend. The ex-dividend date is Friday, April 10th. This represents a yield of 447.0%. Lloyds Banking Group's dividend payout ratio (DPR) is currently 30.95%.

Institutional Investors Weigh In On Lloyds Banking Group

Several large investors have recently made changes to their positions in the company. Mesirow Financial Investment Management Inc. boosted its holdings in Lloyds Banking Group by 7.7% in the 3rd quarter. Mesirow Financial Investment Management Inc. now owns 28,561 shares of the financial services provider's stock valued at $130,000 after purchasing an additional 2,040 shares during the period. Harbour Investments Inc. lifted its holdings in shares of Lloyds Banking Group by 47.3% in the fourth quarter. Harbour Investments Inc. now owns 6,386 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 2,051 shares in the last quarter. Xponance Inc. lifted its position in Lloyds Banking Group by 14.7% during the 3rd quarter. Xponance Inc. now owns 17,992 shares of the financial services provider's stock worth $82,000 after buying an additional 2,302 shares in the last quarter. SYM FINANCIAL Corp increased its position in Lloyds Banking Group by 17.0% during the third quarter. SYM FINANCIAL Corp now owns 15,864 shares of the financial services provider's stock worth $72,000 after buying an additional 2,309 shares during the last quarter. Finally, Portside Wealth Group LLC grew its position in shares of Lloyds Banking Group by 18.2% in the third quarter. Portside Wealth Group LLC now owns 15,245 shares of the financial services provider's stock valued at $69,000 after purchasing an additional 2,351 shares during the last quarter. Institutional investors own 2.15% of the company's stock.

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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