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

A woman scratches her head, is this a no-brainer?A woman scratches her head, is this a no-brainer?

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.

The post What’s going on with the CBA share price on Wednesday? appeared first on The Motley Fool Australia.

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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.

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