SYDNEY, Australia – Westpac Banking earns a negative rating for coverage optimism on Saturday due to some less than stellar media stories.
Westpac Banking Corporation is among the most popular lender in Australia, offering a wide array of banking and financial services. Westpac Banking manages five divisions, including Westpac New Zealand, Westpac Institutional Bank, BT Financial Group, Business Bank, and Consumer Bank.
Westpac Banking Corporation provides various services, including everyday banking, term deposit, savings, and savings accounts for under 21 and students, people moving to Australia, community solutions, a business one, foreign current, and not-for-profit savings. The bank also provides services such as home loans, personal loans, investment loans, small business loans, commercial loans, debit cards, credit cards, farm and term management deposits, and other financing services.
Headlines about Westpac Banking have been rampant in media reports as late. And with not particularly good media stories, the lender has been trading way below on the negative line on Saturday based on the reports from InfoTrie.
The research group based its rating from the sentiment of the media story by analyzing a total of more than 6,000 blogs and news sources in real-time. InfoTrie ranks the sentiment of media coverage of all public companies on a scale of negative five as the lowest and five as the highest rate. Getting a rate of five or nearest to five suggest a more favorable media coverage sentiment for a particular company.
Based on the rates and ranking published by the research group, the Westpac Banking was trading negative on media coverage sentiment on Saturday. The media sentiment score of one of the most popular lenders in Australia is negative 4.50, way below in the scale.
Further, InfoTrie also provides a news buzz score to news stories about public companies, which ranges from zero to 10. The research group has given a zero news buzz score for news stories about Westpac Banking, which means the latest media coverage about the bank is extremely unlikely to harm its share price in the coming trading days.
Among the recent media stories about that bank that may have affected its analysis and ratings includes the report about the FY2020 earnings of the Westpac Banking Corporation weighed in by the underperforming rating of the stocks of Jefferies Financial Group that came out on Wednesday.
Jefferies Financial Group equity researchers dropped their estimates for the FY2020 earnings for Westpac Banking Corporation. It is based on the note that the firm has issued to the investors on February 19, Wednesday.
According to the analyst at the Jefferies Financial Group, the bank is expected to post its earnings per share much lower at $1.37 for the year compared to its $1.43 prior forecast. Jefferies Financial Group has an underperforming rating currently.
A couple of other market analysts have also weight in on the company, with the Morgan Stanley shedding its previous equal weight rating for Westpac Banking to a much lower underweight rating based on the report published on Monday.
On Tuesday, a report showed that ValuEngine has also changed its sell rating for Westpac Banking into a hold rating. Finally, on Thursday, Zacks Investment Research has dropped its previous hold rating for Westpac Banking shares to a sell rating.
Four out of five analysts issued a sell rating for the stocks of the bank, while the other one firmed with its hold rating.
The headline about the global investor rights law firm, Rosen Law Firm, reminding Westpac Banking the critical deadline in the securities class action, which was previously filed by the firm. The lead plaintiff deadline is set for March 30, 2020, with the lawsuit looking for ways to recover the damages for Westpac Banking investors per the federal security laws.
Further, Zhang Investor Law has also reminded the investors of the bank about the same deadline. The law firm has previously announced a securities class action lawsuit against Westpac Banking Corporation. The lawsuit filed was made on behalf of shareholders who purchased stocks of the bank in the class period from November 11, 2015, to November 19, 2019.
Another media story that may have affected the analysis of Westpac Banking was its reported price to earnings ratio, which is currently at 13.14 for the last 12 months.it means that investors pay current prices at 13.14 Australian dollar for every one Australian dollar in trailing yearly earnings.
The current P/E ratio of the bank is beyond lower compared to the 8.6 average rates in the Australian market. However, the muted expectations in the market towards Westpac Banking figures weren’t as surprising, especially with the bank having a significant amount of debt and its EPS that didn’t grow last year.
The negative rating in the media coverage sentiment for the Westpac Banking Corporation has the same mood. The bank opened the trading session on Friday at $16.99, then went to reach a day high of $17.04. However, it only settled at $16.99 before the weekend starts. Its 50-day moving average price is currently placed at $16.96, and the 200-day moving average is currently priced at $18.18.
Meanwhile, several institutional investors and hedge funds have made changed to their standing in Westpac Banking recently. For one, Whittier Trust Co. increased its shares holdings of Westpac Banking during the third quarter. The firm added 358.1%, which gives them ownership to a total of 4,466 shares of the lender, which can be valued at around $89,000.
Cornerstone Advisors Incorporated also raised its Westpac Banking shareholdings by 46.8% for the third quarter as well. The firm now owns 4,965 stocks of the back, with a value of around $99,000. Quadrant Capital Group LLC increased 13.3% of its previous total shareholdings of Westpac Banking, making them the owner of the bank’s 50,620 shares, which can be valued at $997,000.
Fisher Asset Management LLC and Lindbrook Capital LLC also raised their stock holdings of the bank as well by around 3.1% and 119.1%, respectively. Fisher Asset Management LLC now owns a total of 22,295 Westpac Banking stocks, while Lindbrook Capital LLC now has a total of 7,362 shares.
Meanwhile, 0.57% of the total shares of Westpac Banking Corporation is held by institutional investors.