Lloyds Banking Group Share Price Forecast November 2021 – Time to Buy LLOY?
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Shares of British financial institution Lloyds Banking Group (LSE: LLOY) are in the greed today, currently trading at 47.155p at the time of writing. The shares initially had risen by 30% year-to-date which was bolstered by the bank’s strong recovery post-pandemic. However, fresh news concerning a new Covid variant has sent the stock back down and it fell over 7% on Friday. Many investors are wondering whether the share price will recover and if this is an opportunity to buy LLOY shares.
Lloyds Banking Group – Technical Analysis
The financial statement from Lloyds Banking Group indicates a market cap of £3.265 trillion with totl assets worth £87.969 trillion. Revenue for 2020 was at £3411.80 billion with a profit margin of 2.54% compared to £4942.00 billion in 2019.
Oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(28.922), Williams Percent Range (14) (−69.875), Bull Bear Power(−4.127) and Ultimate Oscillator (7, 14, 28)(43.554) are neutral. Moving averages such as Exponential Moving Average (10)(48.617), Simple Moving Average (10)(49.075), Exponential Moving Average (20)(48.895), Simple Moving Average (20)(49.260) and Exponential Moving Average (30)(48.736) are indicating a sell action.
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Recent Developments
After tailing off from its impressive surge in December 2020, Lloyds Banking Group entered the year trading at around 35p. 2021 has seen a slow and steady rise in the share price, at one point breaking the 40p mark in March. It has surpassed the 50p mark three times since March but has failed to retain it. The recent gains seen by the shares were reversed thanks to news regarding a new strain of Covid-19, which caused the FTSE 100 to fall by 250 points.
Despite being a leading lender to UK homebuyers, borrowers and businesses, the shares of the bank were among one of Friday’s biggest fallers. The share price dived to 46p which fixed the bank’s value at £33.7 billion. The new Omicron variant is nastier than Delta which can cause then fresh social restrictions that can be a hurdle to UK’s economic recovery.
Should You Buy LLOY Shares?
The fate of LLOY shares depends on a number of factors. On 16th December, the Bank of England is scheduled to chair a meeting to decide whether there will be a rise in interest rates, which is likely given that inflation is up to its highest level in a decade. This move can increase bank profits from lending, which can be good for the share price.
Lloyds Banking Group’s growth also depends on whether or not the UK can continue its strong economic recovery. The dangers of rising Covid-19 cases as new variants are found can be a major problem for its share price. These impacts can get multiplied due to the upcoming winter month, which could see a rise in cases.
Both rising interest rates and Covid cases will have a big influence on how the bank will perform in 2021. The shares will enter a solid position in 2022 if the UK keep coronavirus cases down. While the government has previously stated that there won’t be any winter lockdowns, recent announcements from Prime Minister Boris Johnson suggest otherwise. If lockdowns are again reintroduced, the share price will fall further in the new year. Considering this, investors should hold off from buying the shares for now. However investors should keep an eye on it in the future as a strong business, the potential for a larger dividend, and economic resilience could all boost investor sentiment.
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