Here’s Why Westpac Banking Corporation (WBK) Is A Stock To Set Your Sights On

On Tuesday, shares of Westpac Banking Corporation (NYSE:WBK) marked $12.61 per share versus a previous $12.60 closing price. With having a 0.08% gain, an insight into the fundamental values of Westpac Banking Corporation, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. WBK showed a fall of -25.74% within its YTD performance, with highs and lows between $7.98 – $20.56 during the period of 52 weeks, compared to the simple moving average of -17.12% in the period of the last 200 days.

UBS equity researchers changed the status of Westpac Banking Corporation (NYSE: WBK) shares from “Neutral” to a “Buy” rating in the report published on June 5th, 2020. Other analysts, including JP Morgan, also published their reports on WBK shares. JP Morgan repeated the rating from the previous report, marking WBK under “Neutral” rating, in the report published on April 27th, 2020. Additionally, WBK shares got another “Outperform” rating from Credit Suisse. On the other hand, Goldman Downgrade the “Neutral” rating for WBK shares, as published in the report on January 10th, 2019. Citigroup seems to be going bullish on the price of WBK shares, based on the price prediction for WBK. Another “Neutral” rating came from Macquarie.

Westpac Banking Corporation (WBK) Analysis

The present dividend yield for WBK owners is set at 0.09, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Westpac Banking Corporation, the company needs to provide a healthy cash flow, currently at the value of 1.25. In addition, the growth of sales from quarter to quarter is recording -8.70%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Westpac Banking Corporation (WBK) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 7.30% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while WBK is currently recording an average of 785.41K in volumes. The volatility of the stock on monthly basis is set at 2.87%, while the weekly volatility levels are marked at 2.08%with 0.24% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $15.96, indicating growth from the present price of $12.61, which can represent yet another valuable research and analysis points that can help you decide whether to invest in WBK or pass.

What to Look for When Analyzing Westpac Banking Corporation Shares?

Westpac Banking Corporation (WBK) is based in the Australia and it represents one of the well-known company operating with Financial sector. If you wish to compare WBK shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 13.81 for Westpac Banking Corporation, while the value 12.02 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 0.91 is supported by the yearly EPS growth of -17.50%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.10%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 0.40% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in WBK Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in WBK in the recent period. That is how Northern Trust Investments, Inc. now has an increase position in WBK by 5.62% in the first quarter, owning 3.03 million shares of WBK stocks, with the value of $34.4 million after the purchase of an additional 161,060 shares during the last quarter. In the meanwhile, Parametric Portfolio Associates L also increased their stake in WBK shares changed 59.61% in the first quarter, which means that the company now owns 2.97 million shares of company, all valued at $33.71 million after the acquisition of additional 1,108,297 shares during the last quarter.

Renaissance Technologies LLC acquired a new position in Westpac Banking Corporation during the first quarter, with the value of $31.24 million, and Goldman Sachs Asset Management LP increased their stake in the company’s shares by 77.43% in the first quarter, now owning 706,829 shares valued at $18.4 million after the acquisition of the additional 1.62 million shares during the last quarter. In the end, Dimensional Fund Advisors LP increased their position by 20.06% during the first quarter, now owning 450813 WBK shares, now holding the value of $5.12 million in WBK with the purchase of the additional 32,491 shares during the period of the last quarter. At the present, 0.40% of WBK shares are in the ownership of institutional investors.