Commonwealth Bank of Australia (ASX:CBA) Trading Outlook
Commonwealth Bank of Australia (ASX:CBA) is looking like a sell after open today.
The stock has rallied on the back of a rate rise and China’s rate cut, but the technicals say we are already at the top end of trading for now.
Commonwealth Bank of Australia , the country’s leading mortgage lender, on Thursday said it will raise its standard variable home loan rates by 15 basis points, to partly offset higher regulatory costs.
CBA’s decision follows a 20 basis point increase in mortgage rates by close rival Westpac Banking Corp last week. The move, which tantamount to monetary tightening, could force the Reserve Bank of Australia to cut interest rates, already at a record low of 2.0 percent, at its November policy meeting.
Earlier this week, Australia accepted most key recommendations of a government-backed inquiry which called for more competition between and stronger capital reserves for major banks.
CBA will raise its standard variable rates to 5.60 percent for owner-occupied home loans and to 5.87 percent for investors, effective November 20.
| Support/Resistance |
| Type | Value | Conf. |
| resist. | 88.83 | 2 |
| resist. | 87.78 | 6 |
| resist. | 84.96 | 8 |
| resist. | 83.81 | 4 |
| resist. | 81.99 | 5 |
| resist. | 79.55 | 5 |
| supp | 76.54 | 15 |
| supp | 73.49 | 3 |
| supp | 71.68 | 4 |
| supp | 70.15 | 2 |
| Chart Indicators |
| Ind. | short | Inter | Long |
| EMA | VBu | Bu | N |
| MACD | VBu | VBu | VBu |
| RSI | Bu | ||
| TDD | Bu | ||
| Fibs | VBu | Be | VBe |
| Highs | VBe | Be | VBu |
| Lows | Bu | N | VBe |
| Trends | N | N | N |
| Stoch. | VBe |
| VBu=Very Bullish, Bu=Bullish N=Neutral Be=Bearish, VBe=Very Bearish |
Analyst Recommendations and Revisions
| 1-5 Linear Scale | Current | 1 Month Ago |
2 Month Ago |
3 Month Ago |
|---|---|---|---|---|
| (1) BUY | 3 | 3 | 2 | 1 |
| (2) OUTPERFORM | 3 | 3 | 3 | 3 |
| (3) HOLD | 8 | 8 | 9 | 11 |
| (4) UNDERPERFORM | 2 | 3 | 2 | 1 |
| (5) SELL | 2 | 1 | 2 | 2 |
| No Opinion | 0 | 0 | 0 | 0 |
| Mean Rating | 2.83 | 2.78 | 2.94 | 3.00 |
Institutional Holders
| % Shares Owned: | 11.69% |
| # of Holders: | 339 |
| Total Shares Held: | 199,687,655 |
| 3 Mo. Net Change: | 6,726,793 |
| # New Positions: | 5 |
| # Closed Positions: | 6 |
| # Increased Positions: | 57 |
| # Reduced Positions: | 55 |
| # Net Buyers: | 2 |
Valuation Ratios
| Company | industry | sector | ||
|---|---|---|---|---|
| P/E Ratio (TTM) | 14.33 | 13.28 | 15.53 | |
| P/E High – Last 5 Yrs. | 15.69 | 16.12 | 21.28 | |
| P/E Low – Last 5 Yrs. | 12.39 | 10.83 | 11.14 | |
| Beta | 0.94 | 1.52 | 1.50 | |
| Price to Sales (TTM) | 5.58 | 4.41 | 5.15 | |
| Price to Book (MRQ) | 2.45 | 2.59 | 3.78 | |
| Price to Tangible Book (MRQ) | 3.11 | 2.58 | 3.80 | |
| Price to Cash Flow (TTM) | 13.55 | 11.69 | 13.95 | |
| % Owned Institutions | — | 0.24 | 0.42 | |
Dividends
| Company | industry | sector | ||
|---|---|---|---|---|
| Dividend Yield | 5.42 | 2.19 | 2.12 | |
| Dividend Yield – 5 Year Avg | 5.27 | 1.97 | 1.91 | |
| Dividend 5 Year Growth Rate | 7.69 | 18.03 | 17.51 | |
| Payout Ratio(TTM) | 75.72 | 1.91 | 3.48 | |
Commonwealth Bank of Australia is an Australia-based financial services company. The Company is engaged in the provision of integrated financial services, including retail, funds management, superannuation, business and institutional banking, insurance, investment and share-broking products and services. The Company operates through seven segments: Retail Banking Services, which provides home loan, consumer finance, and retail deposit products and servicing; Business and Private Banking, which provides specialized banking services to relationship managed business and agribusiness customers, private banking to high net worth individuals, and margin lending and trading through Commonwealth Securities (CommSec); Institutional Banking and Markets, which offers debt and equity capital raising, financial and commodities price risk management, and transactional banking; Wealth Management; New Zealand; Bankwest, and International Financial Services (IFS) and Other Divisions.
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