The Bank of Queensland Limited (ASX: BOQ) share price is outperforming on Wednesday.
In morning trade, the regional bankâs shares are up 2% to $6.68.
This compares favourably to a 0.6% decline by the ASX 200 index.
Why is the Bank of Queensland share price rising?
The Bank of Queensland share price was given a boost this morning by news that an insider has been buying the bankâs shares.
According to a change of directorâs interest notice, Bank of Queenslandâs chairman, Patrick Allaway, has taken advantage of recent market weakness to top up his holding.
The release reveals that Allaway picked up 15,000 shares via an on-market trade on 9 June.
The bankâs chairman paid a total of $104,068.50 for the parcel of shares, which equates to an average price of $6.94 per share.
This almost 4% higher than the current Bank of Queensland share price, which means investors can still buy shares at a lower price to what Allaway paid.
Should you buy Bank of Queensland shares?
One leading broker that sees a lot of value in the Bank of Queensland share price is Goldman Sachs.
It currently has a buy rating and $9.01 price target on the companyâs shares. This implies potential upside of almost 35% for investors over the next 12 months.
In addition, the broker is expecting dividend yields of over 6.5% per annum through to FY 2024.
Goldman commented:
Our Buy rating on BOQ is predicated on i) BOQâs cost performance and its continued delivery of ME Bank synergies, which have been accelerated and increased, ii) continued strong above system volume growth, supplemented by its transition to digital platforms and its associated process improvements, iii) BOQâs 12-month forward PER (ex-dividend adjusted) is trading at a 30% discount to the sector versus a 15-year average discount of 2%.
The post Why is the Bank of Queensland share price outperforming today? appeared first on The Motley Fool Australia.
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More reading
- Top ASX dividend shares to buy in June 2022
- The Bank of Queensland share price just hit a 52-week low. Time to buy?
- Analysts name 2 top ASX 200 dividend shares to buy right now
- Why did the Bank of Queensland share price fall 7% in May?
- What’s dragging on ASX 200 bank shares like NAB on Thursday?
Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. 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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