NatWest Share Price Forecast July 2021 – Time to Buy NWG?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of NatWest Group PLC (LSE: NWG) decreased by 3.29% or $0.19 per share, closing at $5.59 yesterday. The company has been in the news over the last 12 months, going from being profitable to unprofitable. This has caught the attention of many investors who are wondering whether to pick up NWG shares at the moment.
NatWest Group PLC – Technical Analysis
According to the financial statement released by NatWest Group PLC, its market cap is £23.924 billion with total assets worth £769.776 billion. Revenues for 2020 was at £14.24 billion with a profit margin of -5.11%. This is a sharp decrease from 2019’s revenue of £16.21 billion.
Moving over to the technical information, moving averages for NatWest Group PLC such as Volume Weighted Moving Average (20)(203.4), Hull Moving Average (9)(202.3), Exponential Moving Average (50)(201.6) and Simple Moving Average (50)(202.4) are pointing towards selling. On the other hand, oscillators such as Stochastic %K (14,3,3)( 55.1), Commodity Channel Index (20)(−79.9), Average Directional Index (14)(14.2) and Awesome Oscillator(−3.3) are pointing towards neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Recent Developments
NatWest Group PLC along with Ulster Bank of the Republic of Ireland recently sold their majority stake in commercial lending to Allied Irish Banks for around £4.2 billion. As part of the deal, Ulster Bank will transfer around 280 workers to Allied Irish Banks. The deal is said to be NatWest’s attempt to pull out of Ireland. NWG shares decreased by 29% over the last 12 months. Total shareholder return was 68% over the last year. Yesterday the shares opened at $5.69 and fluctuated between $5.69 and $5.58.
Should You Buy NWG Shares?
NatWest Group has accrued significant cash cushions over the last year which are now being used to fund dividends for investors. The company reported a Common Equity Tier ratio of 18.5%. The company has decided to pay around 40% of its profits and has allocated a minimum of £800 million per year for special dividends and ordinary dividends for the next 2 years. Many analysts expect that NatWest Group will earn £2.4 billion in 2021. With a payout ratio of 40%, investors will be entitled to a yield of around 4%.
The above statistics point towards NatWest Group being one of the most attractive U.K. recovery shares. Risks that investors should consider include additional regulation that can result in steep costs. This can decrease profit margins, reducing the potential for cash returns. This sector is particularly being negatively affected by ultra-low interest rates. The longer these rates stay low, the harder it will be for NatWest Group to earn a significant return on investment.
Buy NatWest Group PLC Shares at eToro, the World’s #1 trading platform!
