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The ANZ (ASX:ANZ) share price is down 8% in 5 weeks. What’s happening?

The bank hasn’t had a great time of it lately.
The post The ANZ (ASX:ANZ) share price is down 8% in 5 weeks. What’s happening? appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has struggled in the past few weeks.

The pain for investors continued yesterday, with shares in the banking giant closing 2% lower for the day.

Let’s take a look at why the ANZ share price has been struggling.  

Why is the ANZ share price under pressure?

Despite a disappointing past few weeks, ANZ has not released any price-sensitive news.

As a result, there are many undercurrents that could be putting pressure on the ANZ share price.

Firstly, general weakness in the broader market domestically and abroad could explain why shares in the banking giant have struggled.

During the same period, the broader  All Ordinaries Index (ASX: XAO) has plummeted 4.5%.

A recent broker note could also explain the bearish sentiment on ANZ’s share price.

Leading broker Citi recently released a note that had a sell rating on the bank with a $28 share price target.

According to analysts, recent APRA data indicates a sharp contraction in ANZ’s mortgage book.

In addition, some experts have also flagged a more bearish outlook for the ANZ share price.

According to the commentary, moderation in volume and housing growth could slow near-term growth prospects for the big banks.

Outlook for ANZ

Contrary to the bearish sentiment, some analysts are more optimistic about the outlook for the ANZ share price.

A recent note from Bell Potter had a buy rating on the bank’s shares with a $31 price target.

Analysts cited ANZ’s recent Environmental, Social, and Governance (ESG) update as a positive for the banking giant.

In addition, the broker highlighted ANZ’s focus on retail, business, and the private banking space.

Snapshot of the share price

Although shares in ANZ have struggled in the past few weeks, they remain more than 18.5% higher for the year. 

By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to claw around 8% higher for 2021.

In its recent business update for the third quarter, the banking giant noted that its CET1 ratio came in at 12.2%, a slight reduction from the 12.4% recorded in the previous period. 

With its strong capital position and cost reductions, ANZ announced its intention to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The ANZ share price closed yesterday’s trading session at $27.14.

The post The ANZ (ASX:ANZ) share price is down 8% in 5 weeks. What’s happening? appeared first on The Motley Fool Australia.

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More reading

How could a stock market correction impact ASX 200 bank shares?

Climbing mortgage stress: Are the CBA, ANZ, NAB and Westpac share prices in danger?

Top broker tips ANZ (ASX:ANZ) share price to rise 14%
What does the future look like for the ANZ (ASX:ANZ) share price?
Why this fund manager sees limited growth potential for ASX 200 banks

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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