Is an Investment in Westpac Banking Corp (ADR) (NYSE:WBK) as Risky as Its Decline Suggests?

[The Motley Fool] Westpac Banking Corp (ADR) (NYSE:WBK)(TREND ANALYSIS) If there’s one good thing to come as a result of a selloff in the Australian stock market, it’s falling valuations.

Like the discount rack at your favourite shoe store – or the pub – a lower price tag stretches your dollar further.

According to The Wall Street Journal (WSJ), 12 analysts currently have a ‘buy’ or ‘overweight’ investment rating on shares of Westpac Banking Corp (ASX: WBC).

With a total of 16 analysts polled, the consensus rating is overweight, with a price target of $34.75. One analyst has, however, placed a $38 price target on the shares, according to the WSJ.

Stock Performance: Click here for a free comprehensive Trend Analysis Report

Westpac Banking Corp (ADR) (NYSE:WBK) stock is currently trading 29.44% below its 52-week-high, 10.19% above its 52-week-low. The 1-year stock price history is in the range of $20.12 – $31.42. Westpac Banking Corp (ADR) (WBK) has a price to earnings ratio of 12.92 versus Financial sector average of 17.14. WBK stock price has underperformed the S&P 500 by 12.7%. The Financial Services company is currently valued at $68.95 billion and its share price closed the last trading session at $22.17. The stock has a 50-day moving average of $22.72 and a 200-day moving average of $26.08.

Westpac Banking Corp (ADR) (WBK) current short interest stands at 0.45 million shares. It has decreased by 21% from the same period of last month. Around 1% of the company’s shares, which are float, are short sold. With a 10-days average volume of 0.33 million shares, the number of days required to cover the short positions stand at 1.4 days.

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There are currently fifteen analysts that cover Westpac Banking Corp (ADR) stock. Of those fifteen, twelve have a Buy rating, two have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $38.56.

A recent analyst activity consisted of Credit Suisse upgrading their Underperform rating to Neutral on June 10. On the date of report, the stock closed at $24.49.

Goldman Sachs downgraded their Buy rating to Neutral on May 4. On the date of report, the stock closed at $27.13.

From an income perspective, Westpac Banking Corp (ADR) (WBK) has a dividend yield of 6.3%. The dividend growth rate has evolved at the pace of 7.9% over the last 5 years and the payout ratio stands at the high level of 74.31%.

Company profile

Westpac Banking Corporation offers general and savings banking services. The Company provides investment portfolio management and advice, insurance services, consumer finance, and money market services among other services. Westpac Banking Corp. serves individuals, businesses, and corporations worldwide.

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