What’s going on with the CBA share price on Wednesday?

CBA shares are falling today.

| More on:
A woman scratches her head, is this a no-brainer?

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

  • CBA shares have declined by more than 15% since the beginning of the month
  • While 0.45% lower to $90.79, the CBA share price is performing better than its peers today
  • The bank continues to buy back its shares which is effectively increasing shareholder value

The Commonwealth Bank of Australia (ASX: CBA) share price is in negative territory again today.

At the time of writing, shares in Australia’s largest bank are edging 0.45% lower to $90.79.

While slightly down on Wednesday, it’s worth noting that CBA shares have lost more than 15% since 1 June. This comes off the back of eight consecutive market days in the red.

For context, the S&P/ASX 200 Financials (ASX: XFJ) is also heading south on Wednesday, down 0.21% to 5,728.9 points.

Shares in other major banks, National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ), are shedding 0.86% and 1.11%, respectively.

The Westpac Banking Corp (ASX: WBC) share price is also suffering today, down 1.1% during early afternoon trade.

Why are CBA shares faring better than the other banks?

A catalyst for CBA shares performing better than its peers today could be the attractive levels it’s currently trading at.

According to ANZ Share Investing, UBS lifted its price target on CBA shares last week by 5% to $105.00 per share. This represents an upside of 15.6% based on its current share price.

Furthermore, CBA provided an update on its $2 billion buyback program.

The bank bought back 476,595 shares between $88.92 and $91.20 per share on the previous day. This is a considerable difference to when CBA purchased 1,883,068 of its shares the day before at more than $102 per share.

Previously, management noted that the goal of the buyback program is to reduce surplus capital and increase shareholder value. Once completed, the capital management program is expected to reduce the bank’s CET1 ratio to 11.4%.

CBA share price snapshot

Adding to the already tough month it has been, the CBA share price is down 12% over the last 12 months.

When looking at year-to-date, its shares are down 10%.

Based on today’s price, CBA commands a market capitalisation of roughly $155 billion, with 1.7 billion shares on issue.

Motley Fool contributor Aaron Teboneras 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

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 »

A man sitting at his dining table looks at his laptop and ponders the CSL balance sheet and the value of CSL shares today
Bank Shares

Is the CBA share price overvalued compared to other ASX 200 banks?

CommBank is the most exposed to any downturn in the Aussie housing market.

Read more »

Four businessmen in suits pose together in a martial arts style pose as if ready to engage in competition or spring into a fight.
Broker Notes

Is this ASX bank share a better buy than the big four banks?

One alternative bank share might be looking too cheap to ignore.

Read more »

A puzzled female investor shrugging with credit card and phone.
Bank Shares

Westpac share price slips following release of Q3 update

The big four bank released its third quarter update this morning, but a lack of detail may be seeing some…

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 this leading fund manager’s favourite ASX 200 bank share is NAB

NAB is the best bank share to own, according to WAM.

Read more »

Young investor sits at desk looking happy after discovering Westpac's dividend reinvestment plan
Bank Shares

Westpac share price on watch following Q3 update

Westpac has released its third quarter update...

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

Should investors buy Bendigo Bank shares for dividends?

With its high dividend yield, is Bendigo Bank actually the best bank for income?

Read more »

Group of thoughtful business people with eyeglasses reading documents in the office.
Broker Notes

Up 12% in 30 days, is the Westpac share price still a buy?

The banking giant's shares could still offer a notable upside, according to these brokers.

Read more »