Secure Trust Bank (LON:STB) Sets New 52-Week Low - Time to Sell?

Shares of Secure Trust Bank PLC (LON:STB) hit a new 52-week low during trading on Friday. The stock dipped to as low as GBX 440 ($5.71) before closing at GBX 484 ($6.28), with a trading volume of 940,229 shares. Previously, the stock had closed at GBX 566 ($7.34).

Wall Street Analysts Forecast Growth

Secure Trust Bank has been the subject of various analyst reports recently. Berenberg Bank maintained a "buy" rating and set a price target of GBX 1,420 ($18.42) for the shares of Secure Trust Bank on August 14th. Similarly, Shore Capital reiterated a "house stock" rating for the bank in a report released on October 16th.

Secure Trust Bank Stock Down 14.5%

Currently, the company’s 50-day moving average price stands at GBX 810.66, while its 200-day moving average price is GBX 795.79. Secure Trust Bank has a market capitalization of £91.23 million and a price-to-earnings ratio of 348.32. The company also has a price-to-earnings-growth ratio of 0.11 and a beta of 0.87, indicating lower volatility compared to the market.

Secure Trust Bank Cuts Dividend

Additionally, the company recently announced a dividend, which was paid out on September 26th. Shareholders of record on August 29th received a dividend of GBX 11.30 ($0.15), representing a yield of 1.32%. The ex-dividend date was August 29th. It is worth noting that Secure Trust Bank's current dividend payout ratio is remarkably high at 2,043.80%.

Insiders Place Their Bets

In recent insider trading news, David McCreadie, one of Secure Trust Bank's insiders, purchased 5,930 shares on August 15th at an average price of GBX 843 ($10.93), totaling around £49,989.90 ($64,829.33). On August 20th, another insider, Jim Brown, also bought 12,600 shares at an average price of GBX 860 ($11.15), amounting to roughly £108,360 ($140,526.52). Overall, insiders own about 14.85% of the company's stock.

About Secure Trust Bank

Secure Trust Bank PLC is a UK-based financial institution that provides various banking and financial products and services. It operates through four main segments: Real Estate Finance, Commercial Finance, Vehicle Finance, and Retail Finance. The Real Estate Finance division offers secured loans against property assets, while the Commercial Finance division provides services such as invoice discounting, recovery loan schemes, and solutions related to the coronavirus business interruption loan scheme.

Should You Invest $1,000 in Secure Trust Bank Right Now?

Before deciding to invest in Secure Trust Bank, it may be prudent to seek additional information. Top financial analysts have been keeping an eye on more favorable investment opportunities. While Secure Trust Bank holds a "Buy" rating, there are several other stocks that analysts believe could offer better returns.

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