Regency View:

TAKE PROFITS Barclays (BARC)

Close Barclays (BARC) at market (254.2p)

Barclays has been a fantastic performer in 2024, with our position gaining 70.5% over the past year, but the time feels right to take our profits.

Financials have been one of the standout sectors this year, driven by rising interest rates and robust earnings across the board. Barclays has been no exception, with its momentum indicators showing a strong uptrend over six and twelve months. However, with the stock near 52-week highs, much of the good news seems priced in. The recent dip of over 3% today is a subtle reminder of how quickly sentiment can change. By locking in our gains now, we have the flexibility to rebalance the portfolio and seize new opportunities as they arise.

We’ve also recently increased our exposure to HSBC, which offers diversification within the financial sector alongside a compelling growth outlook. With HSBC delivering strong quarterly results and benefiting from its Asian footprint, we see it as a more strategic long-term play. Barclays’ fundamentals remain solid, with attractive valuation metrics and a healthy dividend yield, but after such a strong run, the risk-reward equation has shifted.

Profit = +70.5%

BARC Daily Candle Chart