The Bank of Queensland Ltd (ASX: BOQ) share price is having a tough day on the market.
The bank’s shares are currently swapping hands at $8.255, a 2.88% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.43% at the time of writing.
So what is causing the company’s shares to drop today?
The Bank of Queensland share price could be struggling due to two recent broker downgrades.
Today, Ord Minnett downgraded the bank’s shares to a hold rating. And, on Friday, Macquarie downgraded BOQ shares to a neutral rating from outperform. Macquarie also cut the price target on the bank to $9.
Looking at the wider market, the S&P/ASX 200 Financials Index (ASX: XFJ) is also in the red today, down 0.14%.
Bank shares are a mixed bag on the ASX today. The Commonwealth Bank of Australia (ASX: CBA) share price has slipped 0.59% at the time of writing. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) is 0.22% lower and National Australia Bank Ltd (ASX: NAB) is down 0.62%. However, Bendigo and Adelaide Bank Ltd (ASX: BEN) is up 0.68%, Westpac Banking Corp (ASX: WBC) share price is edging 0.08% in the green, and Macquarie Group Ltd (ASX: MQG) is flat at the time of writing.
In today’s news, Bank of Queensland has selected Honey Insurance to offer home insurance to its 400,000 customers. In a release cited by Insurance Business Australia, the companies said:
Together BOQ and Honey have created a unique and innovative offering focussed on transforming how customers buy insurance and solving pain points by making the experience seamless.
Bank of Queensland share price snapshot
The Bank of Queensland share price is up 2% year to date but has lost nearly 5% in the past 12 months. In the last month, it has gained almost 6% although it has fallen 2% in a week.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 10% in the past year.
The banking share has a market capitalisation of about $5.3 billion based on the current share price.