Barclays (LON: BARC): Should you buy the stock now?

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Barclays (LON: BARC): Should you buy the stock now?

 Barclays (LON: BARC): Should you buy the stock now?
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Highlights

  • Barclays Plc is among the Big four banking majors in the UK.
  • Last month, Barclays’ share price touched its 52-week low.
  • Technical charts of Barclays on LSE are showing the support at GBX 140.06.

Barclays Plc (LON: BARC) is among the Big four banking majors in the UK - and offers financial services in several countries. As of 3 May 2022, 8:47 am GMT, Barclays' shares traded at GBX 151.72, up 2.38%. The share price has witnessed a sharp decline over the past few months and touched its 52-week low last month.

According to technical charts on LSE (London Stock Exchange), the Fibonacci support-resistance levels are at GBX 140.06 and GBX 151.83, respectively. The momentum oscillator’s Daily RSI is close to 49.67 levels, while the weekly RSI stands at 38.07. The chart is showing a double bottom pattern and the STOCH (9,6) levels stand at 42, indicating that the stock is in the oversold zone, showing signs of coming out. The MACD (12,26) stands at 1.140.

The share price of Barclays has witnessed a sharp decline over the past few months2022 Kalkine Media®

Barclay’s Financial, Q1 2022

In the first quarter of 2022, which ended on 31 March 2022, the company surpassed the market expectations and delivered solid growth in revenues and profits. The group income climbed by 10% to £6.5 billion, while the profit before tax stood at £2.2 billion. For the UK business, the group's profit before tax rose to £594 million in comparison to the £460 million in the first quarter of 2021. Besides, the total income surged by 5% to £1,649 million, while the net interest income went up by 5% to £1,339 million. The growth was primarily driven by the rising interest rate environment in the UK, the company said in a statement.

In the wake of the rising inflation, the group expects its FY2022 operating expenses to be around £15 billion. On the other hand, the impairment charge is expected to stay below the pre-pandemic levels in the coming quarters.

Recent developments

Last week, the group made headlines as it suspended market-making activities in its own debt securities after it 'mistakenly' issued US$15 billion of US securities. The blunder that the company disclosed on March 28, saw it selling securities worth billions of dollars in the US markets for around a year, exceeding the permissible limits from regulators.

The development is said to be another setback for CS Venkatakrishnan, the new CEO of Barclays, who had to halt a US$1.25 billion share buyback plan amid talks with the US regulators over the mistake.

The financial conglomerate has a market cap of £24,841.29 million as of 3 May 2022 and has given a negative return of 13.77% to its shareholders over the last one year.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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