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I think anything above 200p is a good first step. BARC has been undervalued for ages.
One stock that might be an intriguing choice for investors right now is Barclays PLC BCS. This is because this security in the Banks - Foreign space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Banks - Foreign space as it currently has a Zacks Industry Rank of 56 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Barclays is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
Barclays PLC price-consensus-chart | Barclays PLC Quote
In fact, over the past month, current quarter estimates have risen from 49 cents per share to 54 cents per share, while current year estimates have risen from $1.60 per share to $1.62 per share. The company currently carries a Zacks Rank #3 (Hold), which is also a favorable signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So, if you are looking for a decent pick in a strong industry, consider Barclays. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
Surely the share plans are linked to the share price. An increase in share price will diminish the impact of issuance of new shares.
They've been cheap as chips for a while.
What’s the community’s take on Barclays’ next 3-month target: around £190, £220, or £150? And what factors are driving this forecast, especially considering the recent share reduction and shorted shares?
BARC total share counts will reduce to Oct 23, 2023 post buy-back level by tomorrow. The damage of employee stock compensation has cost over 1 month buyback to level the hole.
Another note of the shorted shares, using today's price, their paper loss has reached £20M or nearly 10%.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Barclays (BCS), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Barclays currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if BCS is a promising momentum pick, let's examine some Momentum Style elements to see if this financial holding company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For BCS, shares are up 1.9% over the past week while the Zacks Banks - Foreign industry is up 0.13% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 10.64% compares favorably with the industry's 4.44% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Barclays have increased 18.63% over the past quarter, and have gained 40.75% in the last year. In comparison, the S&P 500 has only moved 10.82% and 32.56%, respectively.
Investors should also take note of BCS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, BCS is averaging 15,577,282 shares for the last 20 days.
Earnings Outlook
Wasn’t a bad period to be doing the buy backs. Share price has been shocking ever since 2021
I think it really shows how much sentiment matters on share valuations. Every calculus shows Barclays are undervalued.
But, the truth is, they keep on disappointing, regulatory failures, soft financial performance and a disconnect of strategy.
I am holding my shares as I do think that two or three solid quarterly results where they show they are executing the strategy and they may come off the 'naughty step'.
Interesting that I looked at this today.
Barclays commenced buying back shares for the first time since the financial crisis on the 19th March 2021.
As a baseline the share price was £1.8260 and there were 17,365,368,531 shares in circulation valuing the bank at £31,709,162,938.
Today there are 15,105,406,532 shares in circulation. If the bank was to be valued the same as it was on the 19th March 2021 (our baseline) then the share price should be £2.0992.
As it is the market currently values Barclays less at today's value of £27,574,919,624. Interesting that the share price today is £1.8256 (virtually the same as 2021).
But things are looking up. £2 is in sight.
The economy just needs to print good news and numbers UK and US, keep that going and we might get the start of a bull run going, one thing is for sure that predictions for this year look decent, can we finally let go of the bear market, well if we can avoid quick rallies and steep drops then yes, its looking ok so far but things change fast.
Anyways its nice to see, good luck to all holders.
Https://www.ii.co.uk/analysis-commentary/can-barclays-shares-make-move-above-200p-ii531090
Interesting to see if we can breach 200 pence soon...been a long wait...
The branch Stockton on Tees, was knocked down last year, but Barclays opened a new branch in Stockton, not far from the original, all new. So I guess close those not making financial sence and those that do, keep open, in this case new.
I agree with closures where required, as do we really need to visit branch that often now.
DYOR is a good lesson.
My situation exactly seems like yesterday but it's been 20 years also bought at £3 after it zoomed up from near £1 at that time I thought it will definitely hit £5+ due to previous price action but not to be. However I did keep buying at lower prices and am now in good profit. ATB mate.
Hi ,buying shares are a gamble as you are aware, l have been investing here for 20 years I’ve bought at £3 and at £1 but I’m just building a holding for my and my kids future. If you need the money short term don’t invest it . We will see £3 again just have to wait , enjoy the dividends or reinvest them .
Honestly, it's tough to write this. Over the past five years, I've seen a lot about Barclays. Despite optimistic predictions, the price hasn't risen much from where it is now. Do some people know more than others, or are they just talking? Similar things happened with other stocks I've had. What can I learn from this?
At the same time, though, the company has vowed to invest more heavily in other areas within the bank, including its UK-focused offerings and its US credit-card arm. For instance, Barclays expects risk-weighted assets to climb by roughly £50 billion ($64 billion) in the coming years and it’s not planning to allocate any of the additional capital to the investment bank.
Managers in the division are also under pressure to trim £700 million in costs by 2026 as they seek to whittle the unit’s cost-to-income ratio down to a percentage in the high-50s. That metric, which shows how much it costs to produce a pound of revenue, ended last year at 69%.
“The simple way to think about it is that we’re looking for the investment bank to grow and to contribute more while consuming less,” Venkatakrishnan said at the event last month.
Bankers on Edge
Inside the investment bank division, staffers have been on edge for months as they awaited executives’ decisions on the fate of the unit, Bloomberg reported late last year.
The division has been reeling from a grim bonus season in which Barclays handed dozens of investment bankers no bonus at all. Tensions have also been running high as executives have spent recent months trying to recover from the period of higher-than-usual attrition last year.
After those departures, the division’s leaders — Cathal Deasy and Taylor Wright — began offering guaranteed bonuses and paying more to those who threatened to leave, Bloomberg reported last month. Those moves further depleted the bonus pool this year, frustrating bankers who stayed, people familiar with the matter said at the time.
The investment bank “is a critical part of Barclays and will continue to be an important part of Barclays,” Venkatakrishnan said last month. “I’m equally clear that there is a lot more to do. Our investment bank has to be higher returning. And, relatively speaking, it has to become a smaller part of Barclays.”
https://www.bloomberg.com/news/articles/2024-03-20/barclays-preparing-to-cut-hundreds-of-jobs-in-investment-bank?utm_content=business&utm_source=twitter&utm_medium=social&utm_campaign=socialflow-organic&cmpid=socialflow-twitter-business&sref=2h1zKciy
Barclays Readies Hundreds of Job Cuts in Investment Bank
Cuts will affect dealmaking, trading and research divisions
Bank embarking on yearslong effort to improve unit’s returns
By Jan-Henrik Foerster and Pamela Barbaglia
20 March 2024 at 18:27 GMT
Updated on 20 March 2024 at 19:06 GMT
Barclays Plc is preparing to cut several hundred jobs within its investment bank division as the firm embarks on a yearslong efforts to trim costs and boost profits within the unit, according to people familiar with the matter.
The cuts will affect staffers in global markets, research and the firm’s investment banking arm, according to the people, who asked not to be identified discussing non-public information. They are expected to take place in the coming months and are part of the firm’s annual cutting of low performers, the people said.
“We regularly review our talent pool to ensure that we can invest in high-performing talent, execute on our strategy, and deliver for our clients,” Barclays said in an emailed statement, which noted it hasn’t finalized the number of roles included in this year’s review.
In recent months, Wall Street giants from Citigroup Inc. to JPMorgan Chase & Co. have turned to job cuts in response to the global slump in dealmaking and capital markets activity. At Barclays, the moves come as the company is kicking off a lengthy push to improve the profitability of its investment bank division, which has been stung by that dearth of activity as well as higher-than-usual attrition among dealmakers.
Barclays has long faced questions from investors about the viability of its Wall Street operations because the investment bank consumes more capital than other, higher-returning divisions across the firm. Last month, Chief Executive Officer C.S. Venkatakrishnan sought to put those questions to rest as he laid out plans for the unit to become more profitable by focusing on boosting its advisory and equity underwriting offerings.
As part of that work, the company has been refocusing its businesses on industries it believes will be most active in the coming years, including financial sponsors and energy companies that are navigating away from greenhouse gas emissions. To that end, Barclays won a mandate to advise Equitrans Midstream Corp. on its $5.5 billion sale to the US natural gas producer EQT Corp. this month.
Barclays Looks to Sovereign Wealth Funds in IB Push
Barclays Chief Executive Officer C.S. Venkatakrishnan says the bank is hoping to expand its relationships with sovereign wealth funds and private equity giants as it looks to broaden its footprint in advisory and equity underwriting.
I don’t think they are trying to shed, rather cut costs in areas that provide little value. Most customers bank online, there are very few reasons to visit a branch nowadays. It simply makes no sense to keep that overhead when the people walking in are not the ones adding to the top or bottom lines. You can pay in cash at the post office now so options are still available.
Here’s a thing…and I acknowledge I am reflecting retail banking services in central London but:
Barclays have closed 6 branches within 45 minutes’ walking distance…if you’re very fit…and left one open, reduced opening hours, and cut teller time even more so . Net result there are long queues to see a teller and to use the machines…luckily, on a ledge as you queue, they have sellotaped a laminate A4 from the Post Office offering all sorts of banking services…..Bank of Ireland provides Post Office banking not Barclays. Is Barclays looking to buy Bank of Ireland or shove all those pesky retail customers on to Bank of Ireland? …I think we should be told.
Evening All,
The title says it all...
Here's the link: https://www.tradingview.com/news/reuters.com,2024:newsml_L5N3FW2PG:0-citi-sees-european-banks-valuation-cheap-but-q1-miss-likely-adds-barclays-to-top-picks/
Regards, MrA
Evening All,
Here is the Bloomberg Podcast for those that may have missed it.
https://www.youtube.com/watch?v=mZv1Fqij-U0
Regards, MrA
Vim Maru is the new CEO of Barclays UK, while Matt Hammerstein, the previous holder of that role, is now leading the UK corporate bank. Sasha Wiggins is leading the private bank and wealth management division.
Loan Growth
The bank also said last month that it sees risk-weighted assets climbing by £50 billion in the coming years. The company is planning to allocate £30 billion of that to its UK-focused businesses, which include a consumer bank, a corporate bank and a private bank and wealth management division. The remaining £20 billion will be allocated to the US consumer bank.
Part of that is tied to the company’s confidence in the health of the UK and US economies even as the company has seen delinquencies among its consumer customers tick up slightly in recent months, Venkatakrishnan said on Monday.
“The economy is stabilizing, it looks like on both sides of the Atlantic you’re having a softish landing,” he said. “Generally, we are constructive towards lending.”
Bloomberg) -- Barclays Plc is seeking to expand its relationships with sovereign wealth funds and private equity giants as part of its efforts to improve the profitability of its investment banking division by expanding in advisory and equity underwriting.
Those firms — which are sitting on trillions of dollars of dry powder for deals — are the kind of key clients Barclays is hoping to secure as it looks to move beyond the debt underwriting for large, multinational corporations that it’s long been known for, Chief Executive Officer C.S. Venkatakrishnan said in an interview with Bloomberg Television. The bank already has the talent it needs to accomplish that shift, he said.
“We still work with corporations in a very big way, but, in addition to that, you’ve got the financial sponsors and the sovereign wealth funds,” Venkatakrishnan said. “The growth of concentrated pools of capital makes it important to have that full relationship with those players in the market.”
Barclays and its rivals are betting that sovereign wealth funds will continue to deploy billions of dollars to get private equity takeovers across the line amid a broader dearth in deals by corporations. Sovereign wealth funds spent a record $17.2 billion on such co-investments in the first half of last year, which was up 24% from the same period in 2022, Bloomberg has previously reported.
Read more: Private Equity Titans Tap Sovereign Wealth to Get Deals Done
Barclays shares have struggled in recent years and the bank has long faced questions about the viability of its investment bank because of the amount of capital it consumes relative to other, higher-returning parts of Barclays’s business.
But Venkatakrishnan has said that is because it has a larger footprint in debt capital markets relative to peers. That is why he’s now focused on expanding in merger advisory and stock underwriting.
“When you move into advisory fees you start getting a better return on your capital — I think it is an important part of the shift,” he said on Monday. “Our job is to, having created the plan, is to execute it and the share price hopefully will follow.”
Barclays last month announced it would go on a £2 billion ($2.55 billion) cost-cutting drive and reorganize its reporting structure in order to boost profits. The bank vowed to return at least £10 billion to shareholders in the coming years, while it boosts revenue to £30 billion.
Shares of Barclays have surged 9.3% since it unveiled those plans on Feb. 20, making it one of the best performers in the FTSE 100 Index.
As part of the changes, Venkatakrishnan also shuffled his top managers. Adeel Khan was appointed sole head of the global markets division, while his former co-head Stephen Dainton became president of Barclays Bank Plc and head of investment bank management. Cathal Deasy and Taylor Wright are continuing in their current roles as co-heads of banking.
Https://www.ii.co.uk/analysis-commentary/can-barclays-shares-make-move-above-200p-ii531090
'The situation now looks like above 179.5p should next trigger share price movement to an initial 191.4p, along with a strong visual suggestion of some hesitation as this ambition matches the highs of 2023'.
'Our secondary is a bit vague, thanks to the circled manipulation gap. Closure above 191p should move the share price into a region, where our secondary calculates at 201p, perhaps even 221p, assigning the share a position where some true long-term recovery looks possible'.