Is the NAB share price a buy at $26?

National Australia Bank Ltd (ASX: NAB) shares have been showing some weakness of late. Is it time to buy the dip?
The post Is the NAB share price a buy at $26? appeared first on The Motley Fool Australia. –

asx investor daydreaming about US shares

The National Australia Bank Ltd (ASX: NAB) share price is bouncing around today. At one point, it was up, at another, down. At the time of writing, NAB shares are trading at $25.90. That’s down more than 2% from where it was trading yesterday at close. But as my Fool colleague James Mickleboro pointed out this morning, this probably has more to do with NAB shares trading ex-dividend this morning than anything else. Shareholders will be receiving NAB’s 60 cents per share, fully franked, on 2 July. Well, shareholders who owned NAB shares yesterday or earlier. Any late entrants today will have to wait for the next dividend. Hence the share price drop.

But this ex-dividend dip could mask some deeper weakness in the NAB share price. Just last week, the ASX bank was hitting a new 52-week high of $27.84, the highest level NAB shares have traversed since late 2019. Investors were initially buoyed by the bank’s half-year earnings report that was released a week ago. And fair enough too. This report detailed a 94.8% increase in cash earnings for the bank to $3.34 billion, with rises spread across all divisions. NAB also doubled its dividend. All of the other major banks have also recently reported well-received earnings (or quarterly updates), with the possible exception of Australia and New Zealand Banking GrpLtd (ASX: ANZ). But all of this has seemingly been forgotten. On today’s pricing, NAB is now down around 5.3% from its high from last Wednesday

But perhaps this dip is a buying opportunity for NAB. After all, lower share prices are cheaper share prices. And NAB is still a long way from its glory days. Remember, back in 2015 this bank was a $37, $38 share. And way back in 2007, NAB saw upwards of $42 at one point.

Is the NAB share price a buy today?

Well, one commentator who does indeed see some further upside for NAB is Goldman Sachs. According to CommSec, Goldman still has a ‘buy’ rating on NAB after its earnings report, with a price target of $29.97. That implies an upside of more than 15% on the current price, as well as some dividend returns on top. Goldman likes the look of NAB’s cost management initiatives, its dominance of the business banking market, and its well-capitalised capital base.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is the NAB share price a buy at $26? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!