Paragon Banking Share Discussion Threads

[eurofox] 12/11/2015 12:48

apparently the growing market is buy to let for holiday homes, because these are not affected so much by the recent tax changes - I guess because the owners actually live in them for part of the year themselves and the business side of the books can still get allowances for holiday let expenses. this market growth is partly fuelled by retiring boomers with pump priming provided by cashing in pensions etc.

[yupawiese2010] 09/8/2015 22:54

From the I.C last week.

Shares in the UK’s largest buy-to-let mortgage lender Paragon (PAG: 412p) are up 18 per cent in the nine months since I recommended buying at 347p (‘Riding the buy-to-let boom’, 27 October 2014), but are adrift of the 440p price level at the time of my last update (‘Repeat buy signals’, 11 May 2015). They are currently priced on a modest 11.5 times earnings estimates of 35.7p a share for the financial year to end September 2015, underpinned by a prospective dividend yield of 2.4 per cent based on a hike in the payout from 9p to 10p a share, and are rated on a price-to-book value of 1.3 times.

The pull back in the share price since it hit a high of 461p is largely down to the change in government policy towards buy-to-let property landlords with restrictions being placed on the amount of mortgage interest they can offset against rental income on the homes they rent out. That said, I feel that professional investors are taking a sensible approach to the change in government policy as they will still be able to deduct all finance costs from their rental income until the 2017-18 tax year, and tax relief won’t be fully restricted to the basic rate of 20 per cent until the 2020-21 tax year. Someone looking at a buy-to-let investment today will be fully aware of the changes in the tax regime and will be factoring this into their decision.

It’s also fair to say that residential property as an asset class still offers attractive net yields if you buy in the right areas even after taking into full consideration the impact of the aforementioned tax changes. With government bond yields at record lows, there are few alternatives which offer solid asset backing and a reliable income stream for yield hungry investors. And the potential group of investors looking at buy-to-let investments is not getting any smaller as this April’s tax changes to pensions has enabled millions of over 55s to access their pension pots. I still contend that some of these funds will make their way into the buy-to-let market as deposits on debt funded property purchases, a point I made when I initiated coverage last autumn.

Furthermore, business is clearly good for Paragon as the company highlighted in its trading statement at the end of last week: the pipeline of buy-to-let mortgage business was at £865m at the end of June 2015, up 167 per cent on 12 months earlier; Paragon Bank's savings proposition has developed strongly, with the balance of deposits outstanding rising to £389m by the end of June; and the company is currently tapping the London Stock Exchange retail bond market by issuing its third bond issue. There is no shortage of investment appetite for either borrowing from or lending to the company.

So ahead of Paragon’s full-year results for the year to 30 September 2015, I rate the shares a buy on a bid-offer spread of 411.5p to 412p.

[yupawiese2010] 28/7/2015 18:46

Q3 Interim Management Statement to be released tomorrow.

[yupawiese2010] 15/7/2015 20:55

General overview.

[future financier] 09/7/2015 10:44

Quite extraordinary that the only "Pure Play" BTL lender has shrugged off the Chancellor's BTL tax raid whereas for example ALD is down 15%.

But then PAG was down 10% over preceding 2 months just as the Challengers were soaring. Makes you wonder .........

[the drewster] 09/7/2015 10:06

Nearly bought some first thing - was hoping for 350

[wayneduncan] 22/5/2015 16:50

Nice article about PAG in today's paper copy of Investors Chronicle. Remains a buy recommendation.

[mike740] 22/5/2015 12:12

Paragon Group of Companies PLC’s Buy Rating Reaffirmed at Canaccord Genuity (PAG)
May 19th, 2015 updated May 22nd, 2015 - 0 comments - Filed Under - by Jennifer Langley

Canaccord Genuity reissued their buy rating on shares of Paragon Group of Companies PLC (LON:PAG) in a research report released on Tuesday morning. Canaccord Genuity currently has a GBX 495 ($7.79) price objective on the stock.

Canaccord Genuity has also taken action a number of other stocks recently. The firm reiterated its buy rating on shares of Canadian Solar Inc.. Also, Canaccord Genuity reiterated its buy rating on shares of Brookfield Asset Management Inc.. They have a $41.00 price target on that stock, down previously from $62.00. Finally, Canaccord Genuity reiterated its buy rating on shares of Cardiome Pharma Corp. They have a $16.00 price target on that stock.

Paragon Group of Companies PLC (LON:PAG) traded down 0.9556% on Tuesday, hitting GBX 445.7000. The stock had a trading volume of 815,656 shares. Paragon Group of Companies PLC has a 1-year low of GBX 313.7000 and a 1-year high of GBX 461.5000. The stock’s 50-day moving average is GBX 434.11 and its 200-day moving average is GBX 415.31. The company’s market cap is £1.36 billion.

Several other analysts have also recently commented on the stock. Analysts at RBC Capital reiterated a sector perform rating and set a GBX 440 ($6.92) price target on shares of Paragon Group of Companies PLC in a research note on Tuesday. Analysts at Panmure Gordon raised their price target on shares of Paragon Group of Companies PLC from GBX 500 ($7.87) to GBX 550 ($8.65) and gave the company a buy rating in a research note on Tuesday. Analysts at Shore Capital reiterated a buy rating on shares of Paragon Group of Companies PLC in a research note on Tuesday. Finally, analysts at Numis Securities Ltd reiterated a sell rating and set a GBX 297 ($4.67) price target on shares of Paragon Group of Companies PLC in a research note on Tuesday. One research analyst has rated the stock with a sell rating, two have issued a hold rating and nine have given a buy rating to the company’s stock. Paragon Group of Companies PLC presently has an average rating of Buy and a consensus price target of GBX 446.45 ($7.02).

The Paragon Group of Companies PLC is an United Kingdom-based holding company, engaged in the first mortgage and consumer finance businesses. The Company operates in two business segments: First Mortgages and Consumer Finance. The revenue generated by the First Mortgages segment includes interest and fees generated by the buy-to-let and owner-occupied mortgage assets and other income derived from first charge mortgages.

[mike740] 22/5/2015 09:57

Paragon Group of Companies PLC Given New GBX 460 Price Target at RBC Capital (PAG)
May 21st, 2015 • 0 comments • Filed Under • by ABMN Staff

Stock analysts at RBC Capital increased their price objective on shares of Paragon Group of Companies PLC (LON:PAG) from GBX 440 ($6.92) to GBX 460 ($7.24) in a report issued on Thursday. The firm currently has a “neutral”; rating on the stock. RBC Capital’s price objective suggests a potential upside of 7.05% from the company’s current price.

A number of other analysts have also recently weighed in on PAG. Analysts at Bank of America downgraded shares of Paragon Group of Companies PLC to a “neutral”; rating and lowered their price target for the stock from GBX 500 ($7.87) to GBX 470 ($7.39) in a research note on Wednesday. Analysts at JPMorgan Chase & Co. reiterated an “overweight221; rating and set a GBX 465 ($7.31) price target on shares of Paragon Group of Companies PLC in a research note on Wednesday. Analysts at Barclays reiterated an “overweight221; rating and set a GBX 500 ($7.87) price target on shares of Paragon Group of Companies PLC in a research note on Wednesday. Finally, analysts at Canaccord Genuity reiterated a “buy” rating and set a GBX 495 ($7.79) price target on shares of Paragon Group of Companies PLC in a research note on Tuesday. One analyst has rated the stock with a sell rating, three have given a hold rating and nine have issued a buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of GBX 458.42 ($7.21).

Shares of Paragon Group of Companies PLC (LON:PAG) traded down 0.56% on Thursday, hitting GBX 429.70. The stock had a trading volume of 610,369 shares. Paragon Group of Companies PLC has a one year low of GBX 313.70 and a one year high of GBX 461.50. The stock has a 50-day moving average of GBX 434. and a 200-day moving average of GBX 416.. The company’s market cap is £1.31 billion.

The company also recently announced a dividend, which will be paid on Friday, July 24th. Investors of record on Thursday, July 2nd will be paid a dividend of GBX 3.60 ($0.06) per share. This represents a dividend yield of 0.81%. The ex-dividend date is Thursday, July 2nd.

The Paragon Group of Companies PLC is an United Kingdom-based holding company, engaged in the first mortgage and consumer finance businesses. The Company operates in two business segments: First Mortgages and Consumer Finance. The revenue generated by the First Mortgages segment includes interest and fees generated by the buy-to-let and owner-occupied mortgage assets and other income derived from first charge mortgages.

[mike740] 22/5/2015 09:45

Broker BUY Recos for PAG Paragon.


21 May 15 Liberum Capital Buy 435.80 - 560.00 Reiterates
21 May 15 RBC Capital Markets Sector Performer 435.80 440.00 460.00 Reiterates
20 May 15 Bank of America Merrill Lynch Neutral 435.80 500.00 470.00 Downgrades
20 May 15 Barclays Capital Overweight 435.80 - 500.00 Reiterates
20 May 15 JP Morgan Cazenove Overweight 435.80 465.00 465.00 Retains
19 May 15 Shore Capital Buy 435.80 - - Reiterates
19 May 15 Panmure Gordon Buy 435.80 500.00 550.00 Reiterates
19 May 15 Liberum Capital Buy 435.80 510.00 510.00 Reiterates

[mike740] 22/5/2015 09:43

It actually spiked down lower than that at the open then spiked back up, but whose going to argue over a few pence. Good to see it back positive.

Now on and upwards to the top of the trend channel at 460p and beyond.

[future financier] 21/5/2015 09:10

Seems to have found support @ 427p - good call James!

[mike740] 21/5/2015 08:46

PAG Paragon.

Looks like we are heading down for support at 424p/425p, and hopefully this will hold . So more pain in the near future but there is hope.

[future financier] 20/5/2015 16:27

For most of last year Numis had a target of 244p - so at least we have had an upgrade this year! Average of the rest is 490p.

About time that Numis put somebody competent on the job!

[pugugly] 20/5/2015 16:10

yup:_ Thanks - Subject to timing must have lost their clients a lot of cash in the recovry phase !!

[yupawiese2010] 20/5/2015 15:52

Numis - Have a sell recommendation, or at best a hold on most companies in the financial sector.

They have held this stance now for in excess of 4- 5 years.

[pugugly] 20/5/2015 15:22

Interesting NUMIS very much out of line - Any thoughts ?

Date Broker Recommendation Price Old target price New target price Notes
20 May Numis Sell 432.75 297.00 297.00 Reiterates
20 May BOMA Merrill Lynch Neutral 432.75 500.00 470.00 Downgrades
20 May Barclays Capital Overweight432.75 - 500.00 Reiterates
20 May JP Morgan Cazenove Overweight 432.75 465.00 465.00 Retains

[chector177] 19/5/2015 14:25

It does seem that way

[future financier] 19/5/2015 13:57

You really must rein in your cynicism TD!

[the drewster] 19/5/2015 13:22

No - as usual with PAG, the share price action is all done and dusted just prior to the announcement.

[chector177] 19/5/2015 09:04

Thanks for the insight Phillis :-), I was really asking if I had missed something in the report.

[phillis] 19/5/2015 08:49

Because it has
Naive question

[chector177] 19/5/2015 08:14

Scanned the results this morning, which look good to me. The price has dropped, anyone know why?

[mike740] 15/5/2015 14:00

Paragon Group of Companies (The) broker views

Date Broker Recommendation Price Old target price New target price Notes
08 May Liberum Capital Buy 458.35 510.00 510.00 Reiterates
28 Apr RBC Capital Markets Sector Performer 458.35 450.00 440.00 Reiterates
17 Mar Canaccord Genuity Buy 458.35 495.00 495.00 Reiterates
26 Jan Barclays Capital Overweight 458.35 445.00 445.00 Reiterates

[mike740] 15/5/2015 13:21

PAG breaks out.........