Lloyds Bank Share Price Forecast September 2021 – Time to Buy LLOY Stock?

Shares of the renowned British retail and commercial bank Lloyds Banking Group PLC (LSE: LLOY) are in the red today, after closing at 43.555p on September 14th (19:47 UTC+1). The Covid-19 crisis has had a significant impact on practically all industries. For shareholders, this implies a great deal of unpredictability about how large-cap companies like Lloyds Banking will perform in the coming years. With the share prices hovering around 44p recently, investors are yet to come to a conclusion if LLOY shares are too cheap to overlook at this moment or just another classic investing pitfall. Let’s find out!

Lloyds – Technical Analysis

As per the financial statement from Lloyds, the market cap of the British financial institution is at £31.059 billion with total assets worth £879.687 billion. Where the total revenue for 2020 was at £34.12 billion, it was at £49.42 billion a year ago. 

Moving averages for LLOY such as Exponential Moving Average (20)(43.864), Simple Moving Average (20)(43.734), Exponential Moving Average (30)(44.304), and Simple Moving Average (30)(44.650) are pointing towards selling. Oscillators such as Relative Strength Index (14)(44.376), Stochastic %K (14, 3, 3)(53.333), Commodity Channel Index (20)(−24.691), Average Directional Index (14)(20.914), on the other hand, are neutral. 

67% of all retail investor accounts lose money when trading CFDs with this provider.

Recent Developments

The share price of Lloyds Bank has increased by 69.1 per cent in the last year. The share has moved 40.4 per cent in the last year and 0.52 per cent in the last 6 months on a comparative basis, which reflects the overall market’s performance.

The Lloyds share value has been dropping ever since the May peak, after a significant increase in the previous year. According to several analysts, this might indicate that the share price has surpassed business performance but it is possible that it will keep regressing.

The bank’s future price-to-earnings (P/E) ratio for 2021 is only Six times. Lloyds also has a 5.3 per cent dividend yield for 2021, based on recent share prices of 43.555p per share. There hasn’t been a finalized dividend announced yet, but last year’s example served as a stark reminder that payouts can dry up at any time. On the other hand, a yield-focused investor may find several FTSE 100 companies that pay larger dividends than Lloyds in today’s market as well.

Should You Buy Lloyds shares?

Somewhat on appearance, the Lloyds share price appears to have a lot of worth. Yet, several shareholders are sceptical of Lloyds’ capabilities, judging by the institution’s penny stock status. As supply chain difficulties emerge and coronavirus rates rise, analysts have become considerably more pessimistic about the economy’s prospects. Forecasts like these imply that Lloyds may be facing additional revenue pressures and a sudden influx of risky debts. 

As the prominence of banking institutions grows, Lloyds’ share value may face major long-term volatility. Customers are being snatched up by digitally focused and smaller, more flexible operators like Monzo and Revolut at an alarming rate. As per the BDO, total lending from such banking institutions reached a new high of £143 billion in 2020. In an attempt to stop such influx, Lloyds would have to make significant investments in its product lines and portals. 

However, the Bank of England is expected to hike interest rates in 2022, according to FTSE 100 bank supporters. This will enable institutions to earn more money from loans, which will raise Lloyds share value. They might also highlight the company’s stable financial position and what it means for future dividends. But the liabilities to the bank’s profit margin greatly exceed these positive aspects; as a result, even considering the low price, it is safe to overlook the Lloyds share price at this moment, in my opinion.

Buy LLOY Stock at eToro for just $50 Now!