Lloyds Banking Group PLC (NYSE:LYG) Sees Significant Increase in Short Interest

Key Points

• Short interest surged 120.6% to 9.21 million shares as of September 15, though only about 0.1% of Lloyds’ shares were sold short and the short-interest ratio remained low at 0.6 days.
• Lloyds shares rose 2.2% to $5.78, while the company’s latest quarterly results fell slightly short of analyst expectations, reporting $0.13 in EPS versus $0.14 expected and revenue of $6.57 billion versus $6.86 billion forecast.
• The bank reduced its dividend to $0.084 from $0.134, while analyst sentiment remained positive: eight analysts rated the stock Buy and three rated it Hold, producing a consensus Moderate Buy rating.

Lloyds Banking Group PLC (NYSE:LYG - Get Free Report) was the recipient of a significant increase in short interest in the month of September. As of September 15th, there was short interest totaling 9,213,756 shares, an increase of 120.6% from the August 31st total of 4,176,386 shares. Approximately 0.1% of the company's shares are sold short. Based on an average daily trading volume, of 14,519,336 shares, the short-interest ratio is currently 0.6 days.

Lloyds Banking Group Trading Up 2.2%

Shares of NYSE LYG traded up $0.12 during trading hours on Friday, hitting $5.78. The company's stock had a trading volume of 18,540,815 shares, compared to its average volume of 13,115,651. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.56 and a current ratio of 1.52. The stock has a market cap of $83.73 billion, a price-to-earnings ratio of 13.43, a P/E/G ratio of 0.58 and a beta of 0.87. Lloyds Banking Group has a 12 month low of $4.42 and a 12 month high of $6.34. The business has a 50-day simple moving average of $6.01 and a 200-day simple moving average of $5.64.

Lloyds Banking Group (NYSE:LYG - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The financial services provider reported $0.13 EPS for the quarter, missing analysts' consensus estimates of $0.14 by ($0.01). The business had revenue of $6.57 billion for the quarter, compared to the consensus estimate of $6.86 billion. Lloyds Banking Group had a net margin of 24.97% and a return on equity of 10.94%. On average, analysts anticipate that Lloyds Banking Group will post 0.55 earnings per share for the current fiscal year.

Lloyds Banking Group Cuts Dividend

The firm also recently declared a dividend, which was paid on Friday, September 25th. Investors of record on Monday, August 10th were paid a $0.0840 dividend. The ex-dividend date of this dividend was Monday, August 10th. This is a negative change from Lloyds Banking Group's previous dividend of $0.1340. This represents a yield of 273.0%. Lloyds Banking Group's payout ratio is 37.21%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. United Capital Financial Advisors LLC lifted its position in shares of Lloyds Banking Group by 1.5% in the 2nd quarter. United Capital Financial Advisors LLC now owns 126,671 shares of the financial services provider's stock worth $738,000 after purchasing an additional 1,841 shares during the period. Fiduciary Financial Group LLC increased its position in shares of Lloyds Banking Group by 11.7% during the second quarter. Fiduciary Financial Group LLC now owns 18,028 shares of the financial services provider's stock valued at $105,000 after buying an additional 1,891 shares during the period. Angeles Wealth Management LLC increased its position in shares of Lloyds Banking Group by 5.1% during the second quarter. Angeles Wealth Management LLC now owns 41,818 shares of the financial services provider's stock valued at $244,000 after buying an additional 2,031 shares during the period. Harbour Investments Inc. raised its stake in 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 worth $34,000 after buying an additional 2,051 shares in the last quarter. Finally, Waverly Advisors LLC lifted its holdings in Lloyds Banking Group by 20.8% in the first quarter. Waverly Advisors LLC now owns 12,423 shares of the financial services provider's stock worth $62,000 after buying an additional 2,138 shares during the period. 2.15% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Morgan Stanley restated an "overweight" rating on shares of Lloyds Banking Group in a report on Wednesday, September 2nd. Berenberg Bank initiated coverage on Lloyds Banking Group in a research report on Wednesday, June 24th. They issued a "hold" rating for the company. Bank of America raised Lloyds Banking Group from a "neutral" rating to a "buy" rating in a research note on Tuesday, September 1st. Weiss Ratings upgraded shares of Lloyds Banking Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, August 21st. Finally, Citigroup reaffirmed a "buy" rating on shares of Lloyds Banking Group in a research note on Thursday, July 16th. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy".

About Lloyds Banking Group

Lloyds Banking Group plc is a major United Kingdom financial services provider whose shares trade on the New York Stock Exchange under the symbol LYG. The group serves individuals, families, small businesses and larger commercial customers through a range of banking, lending, insurance, investment and wealth-management services.

Its principal brands include Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. Products and services include current and savings accounts, mortgages, personal loans, credit cards, business banking, commercial lending, investment products, pensions and life insurance.

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