Barclays’ bold moves: Strategic update sparks share surge

Those of you who enjoy our Weekly Briefly will know that Barclays (BARC) share price got a welcome boost last week after unveiling a strategic update.

As part of its restructuring efforts, Barclays will review its payments business and has introduced a new organisational structure with five operating divisions. The bank also announced a total return of £3 billion to shareholders for 2023, which includes a share buyback and a final dividend.

Barclays quarterly numbers me analyst forecasts despite a 6% fall in annual profit to £6.6 billion. And the reaction from the market has been overwhelmingly positive – taking the shares back to a key level of resistance.

A break above resistance would open the door for a retest of last years highs at 192p.

Bytes Tech CEO exits abruptly amidst undisclosed share trades

Bytes Technology (BYIT) CEO, Neil Murphy, resigned suddenly last week after engaging in undisclosed trades of the company’s shares, a breach of PDMR disclosure requirements.

Despite the unexpected departure of the CEO, Bytes reported that trading for the financial year ending February 29, 2024, is in line with the board’s expectations. The Company will publish a trading update in March.

The sell-off in the shares has taken prices back down into a broken level of resistance – an area which could provide a platform of support. For now, we will watch and wait to see if this is a storm in a teacup or something more sinister.

Glencore cuts dividend to pay down debt

We have unfortunately placed our Glencore (GLEN) position under review this week after it cuts its dividend over fourfold from $7.1 billion to $1.6 billion.

CEO Gary Nagle attributed the decline in commodity prices in 2023 to higher interest rates and the normalisation of energy markets after the extreme disruptions in 2022. Nagle expressed optimism about the future, stating that the outlook for commodity prices is “bullish,” driven by strong Chinese demand for metals due to their expansion in clean energy and constrained supply of key resources.

Nagle suggested that the completion of the Teck deal might happen sooner than expected, aiming for closure no later than the third quarter of the year. The debt reduction plan is a strategic move to pave the way for Glencore’s most significant restructuring since acquiring mining group Xstrata over a decade ago.

Indivior eyes Wall Street: Drugmaker plans primary listing move to New York

Indivior’s (INDV) share price surged higher last week after releasing a strong trading update and plans to shift its primary listing to New York while maintaining a secondary presence in the UK. The move aims to attract more American investors and potentially secure inclusion in major US indices.

CEO Mark Crossley clarified that the decision is not a testament to the FTSE but is driven by Indivior’s growth prospects, primarily in the US markets.

The company’s financial performance for 2023 revealed sales of $1.1 billion and adjusted net income of $223 million, surpassing analyst expectations.

Indivior’s share price has fresh momentum, and with the stock trading on a forward PE of 10, it remains high on our list of ‘second tranche buy’ options.