Commonwealth Bank Of Australia is a multinational bank. It is serving customers across the USA, New Zealand, Asia, and the U.K. Consumers trust this bank for offering top-notch financial services, including retail business and institutional banking, insurance, investment, superannuation, and broking services. Today, it is the largest bank in Australia, but it was founded in 1911 by the local Government. The bank has its headquarters in Sydney, Australia.
Australia’s entire banking sector may decline by 10% as the bank’s wage costs have advanced and the bank has made higher investment spending.
Despite the overspending by the bank, the CBA has a debt/equity ratio of 51.90%, following an operating margin of 57.43%. The ROA of the bank is 13.39% and the ROE is 31.29%. Its CBA share’s average trading volume is 2.48 Million.
The CBA share yielded a dividend of 4.50% and paid a total of 2.40 AUD as a dividend in the year 2022. By now in the year 2023, it has paid a total dividend of 4.49 AUD, following a payout ratio of 74.52% for the year 2023.
Commonwealth Bank Of Australia Stock Performance Analysis
CBA has an EPS of 5.40 AUD. Its net income has been consistently advancing over the last three years with consistency in profits. It shows that the bank’s performance is good and is reliable in the long run. One negative point for the bank is that its debt in consistently advanced for the last three years. Despite this huge debt, the bank has a current ratio of 1.23. It means the bank is capable enough to repay its debts.
Technical Overview of CBA Stock
The technicals on the daily timeframe for the CBA stock are highly negative following the oscillators and MA’s. The current fundamentals of the stock also do not support the buyers, indicating a sell signal.
CBA Share Technical Analysis
CBA stock’s price is trading in a rising wedge pattern, making lower low swings in recent times indicating a bearish bias on the stock. The share is currently forming a bearish candle, which indicates an upcoming breakdown in the stock price.
The CBA share price is currently trading above the 200-day EMA following a golden cross on charts. However, it has declined below the 50-day EMA. If the price continues to decline in the future, we might get to see a downtrend in the share price.
The RSI for the CBA stock is mildly negative to uncertain as it has formed a triangle pattern. It is currently trading inside the same. If the RSI breaks below the pattern, it can lead to further lower levels leading to a downtrend.
Conclusion
The price of the CBA share is trading inside a triangle pattern following the uncertain EMAs and RSI. The fundamentals of the bank are reliable for the longer term. That makes the Commonwealth Bank of Australia a reliable bank.
Therefore, on the breakdown of the triangle pattern, the price can decline to lower levels in the shorter term. The CBA share can rebound in the larger time frame.
Technical Levels
- Support levels for the CBA share are – $81.00 and $90.00
- Resistance levels for the CBA share are – $106.00 and $110.00
Disclaimer
The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.
Source: https://www.thecoinrepublic.com/2023/09/22/macquarie-shows-pessimism-for-cba-share-leading-to-a-sell-off/