Why is the Bank of Queensland (ASX:BOQ) share price slipping today?

We check what may be behind BOQ’s day in the red.

| More on:
ASX shares investor looking incredulously at phone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Bank of Queensland share price is  3% lower today 
  • The company has faced two broker downgrades in as many trading days 
  • The Bank of Queensland share price has dropped nearly 5% in a year 

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?

Broker downgrades

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.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Bank Shares

What’s moving the CBA share price this week?

CommBank shares traded ex-dividend on Wednesday this week.

Read more »

A man smiles as he holds bank notes in front of a laptop.
Bank Shares

ANZ share price on watch following equity raising update

ANZ has raised money to fund an acquisition...

Read more »

ASX 300 share investors in suits running a race on an athletics track
Bank Shares

Up 10%, why has the Westpac share price smashed other ASX banks this past month?

The Westpac share price has surged this month despite rocky Q3 earnings results.

Read more »

Confident male executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office
Bank Shares

The NAB share price has gained 5% since last week’s update. What’s next?

NAB shares are in focus as the big bank steadily climbs on the ASX.

Read more »

Two businesspeople in suits run, one chasing the other.
Bank Shares

Can ANZ’s latest acquisition help it catch up to the other ASX 200 bank shares?

How much of a difference will buying Suncorp’s bank make? We take a look.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

Why is the CBA share price sliding today?

CBA shares are trading without rights on Wednesday.

Read more »

Woman on her laptop thinking to herself.
Bank Shares

Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?

A broker gives its thoughts on the bank share's outlook following its post-earnings slump.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

Is the Westpac share price a buy following the bank’s latest update?

Are Westpac shares a buy after its latest update?

Read more »