NatWest Group PLC (GB00BM8PJY71)
 
 

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Stand (close): 03.07.25

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23.04.25 23:01:00 Nationwide, Lloyds and NatWest biggest ‘winners’ from account switching service
More than one million current account switches have taken place in the past year, according to a service set up to take the hassle out of moving to a new provider.

Some 1,093,117 current account switches were made between April 1 2024 and March 31 2025, by customers using the Current Account Switch Service (Cass).

A total of 222,805 current account switches were completed between January and March this year by customers using the service, which was lower than 320,364 switches recorded in the same period a year earlier.

Figures provided voluntarily by banks and building societies also show that Nationwide Building Society, Lloyds Bank, NatWest and the Co-operative Bank achieved the highest net switching gains between October and December 2024.

Nationwide had the highest net switching gains with 51,254 over the period, followed by Lloyds Bank (50,061), NatWest (7,279) and the Co-operative Bank (3,812).

The figures do not include customers who did not use Cass to move their current account.

March was the busiest month of the year so far for switching, with 79,680 switches, followed by February (76,007) and January (67,119).

The service said customers have continued to highlight digital functionality and account benefits as key reasons for switching. Online or mobile app banking is the top reason for preferring a new account, its research indicates, followed by interest earned, customer service and spending benefits.

The service automatically moves payments over to the new account and has a guarantee so that customers are not left out of pocket if anything goes wrong with the switch.

Since the service launched in 2013, it has facilitated more than 11.6 million switches and redirected more than 163.6 million payments.

John Dentry, product owner at Pay.UK, owner and operator of Cass, said: “The past quarter has provided a turbulent economic backdrop, no doubt encouraging increasingly money-conscious consumers to take action. By taking advantage of the competitive and dynamic banking market, they have been able to capitalise on more competitive rates, incentives, or improved features.”

Andrew Hagger, a personal finance expert from website MoneyComms, said both Nationwide and Lloyds Bank had offered cash switching incentives during the final quarter of last year.

He added: “It’s an expensive way to acquire new customers, particularly when some account holders will simply up sticks and leave within a few months, hell bent on chasing the next big cash freebie.”

Alastair Douglas, chief executive of TotallyMoney, suggested to those considering switching to a new current account, with various cash incentives available: “Read the small print before jumping in, and have a think about the bigger picture. Access to a physical branch might be important to you, or you might benefit most from an interest free overdraft or zero fees for foreign spending.”

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A Nationwide spokesperson said: “Current account switching continues to be an extremely effective and simple way for people to change their banking relationship on a product which is so central to our day-to-day lives.”

Here are the net switching gains or losses made by providers between October 1 and December 31 2024. The figures include people, small businesses and small charities that have switched using Cass and been covered by the switching guarantee and payment redirection services. The figures do not include switches made outside the service:

AIB Group (UK), minus 463

Bank of Ireland, minus 357

Bank of Scotland, minus 2,176

Barclays, minus 37,128

The Co-operative Bank (includes Smile brand), 3,812

Danske, minus 431

Halifax, minus 20,508

HSBC UK (includes First Direct brand), minus 5,935

JP Morgan Chase, minus 7,352

Lloyds Bank, 50,061

Monzo, 1,678

Nationwide Building Society, 51,254

NatWest, 7,279

RBS (includes Coutts and Isle of Man brand), minus 5,765

Santander, minus 2,799

Starling Bank, minus 3,405

Triodos Bank, minus 23

TSB, minus 17,798

Ulster Bank, minus 780

Virgin Money, minus 4,809

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23.04.25 13:39:19 NatWest vows not to forget ‘lessons’ on bankers’ bonuses
The chairman of NatWest (NWG.L) has vowed not to forget “the lessons of pre-2008” on senior staff bonuses when the bank returns to full private ownership, 16 years after being bailed out by the Government.

Rick Haythornthwaite, speaking at the bank’s annual general meeting (AGM) in Edinburgh on Wednesday, said the bank had now “fixed the issues of the past” and had become a “simpler, safer, customer-focused bank”.

He also thanked UK taxpayers for their “intervention and support”, and said the Government’s decision to “rescue” the bank during the 2008 financial crisis had “protected millions of savers, homeowners and businesses at a time of global crisis”.

The AGM saw the bank’s shareholders vote on 26 separate resolutions, all of which passed – including one that saw an increase in the level of bonuses payable to the bank’s executive directors (EDs).

This will see the maximum bonus for an ED rise from being equal to their salary to being 1.5 times the level of their salary.

Speaking after the AGM, Mr Haythornthwaite described the increase in the level of performance-linked pay as “very measured”, and said it would make the bank more competitive at attracting and retaining “the best talent”.

He went on: “But let’s not open up the floodgates of risk exposure, let’s not forget the lessons of pre-2008 where it all got a bit out of sync.

“We don’t think we’re close to testing the limits of that. It’s not as if we’ve expressed an upper limit here.

“But I think it was a good opportunity to make the shift and remain in sensible territory for the recognition that others are pushing the boundaries.”

Chief executive Paul Thwaite said shareholders had been “supportive” of the change, and said they prefer a “philosophy” whereby good performance is rewarded.

During his AGM speech Mr Haythornthwaite said that after nearly two decades of recovery, growth was now “top of the national agenda”.

He continued: “And, despite ongoing geopolitical uncertainty, competition and innovation are in focus once more.

“It is clear that the rhetoric is changing and we must keep up the momentum in order to create a secure, competitive environment that promotes growth, all in the service of the customer.”

Speaking afterwards Mr Thwaite acknowledged the “volatile” state of the markets in the wake of US President Donald Trump’s tariffs, but said the bank had not yet seen a change in consumer behaviour.

“We’re doing a lot of monitoring of the retail customer base, the commercial customer base, the corporate customer base,” the chief executive said.

“I think in terms of reaction, inevitably, it starts first in the corporate base, (which is) concerned about the uncertainty, thinking about what some of the medium-term impacts might be of the trade policies.

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“In the consumer base, we haven’t seen any material changes yet in actual behaviour.

“In sentiment surveys, there’s definitely more kind of uncertainty and a little bit more concern about what the outlook may be. But that’s more in sentiment than it is in actual changing behaviours.”

During the AGM the board also faced a number of questions about the bank’s dealings with fossil fuel companies, with members of Share Action asking whether it would commit to not watering down its policies on the environment.

Mr Haythornthwaite responded that oil and gas represented a small fraction of NatWest’s business, and that as the bank was currently in the process of reviewing its climate targets he could not make any commitments on policy at this stage.

The AGM, held at NatWest’s head office in Edinburgh, comes as the Government’s shareholding in the bank has dropped below 3%, and is expected to hit zero by the middle of the year.

At the end of 2023, the shareholding was at 40%, but the Treasury has been accelerating efforts to offload its stake by selling shares to retail investors and into the public market.

NatWest received bailouts worth £45.4 billion funded by taxpayers during the financial crisis in 2008 and 2009, helping stabilise the country’s banking sector.

A spokesman for the Treasury said the bailout was to “protect financial stability in the UK, with the independent OBR (Office for Budget Responsibility) stating that not intervening would likely have had much greater social and economic costs”.

He added: “We continue to sell down our NatWest shareholding and expect to fully dispose of this by the end of 2025-26, when market conditions allow and it represents value for taxpayers’ money to do so.”

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18.04.25 15:45:09 NatWest Group (NWG) is a Top Dividend Stock Right Now: Should You Buy?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

NatWest Group in Focus

NatWest Group (NWG) is headquartered in London, and is in the Finance sector. The stock has seen a price change of 20.65% since the start of the year. The bank is paying out a dividend of $0.38 per share at the moment, with a dividend yield of 6.21% compared to the Banks - Foreign industry's yield of 4.12% and the S&P 500's yield of 1.69%.

Taking a look at the company's dividend growth, its current annualized dividend of $0.76 is up 72.7% from last year. Over the last 5 years, NatWest Group has increased its dividend 5 times on a year-over-year basis for an average annual increase of 44.67%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, NatWest's payout ratio is 23%, which means it paid out 23% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, NWG expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.46 per share, with earnings expected to increase 9.77% from the year ago period.

Bottom Line

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that NWG is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).

Story Continues

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NatWest Group plc (NWG) : Free Stock Analysis Report

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14.04.25 10:27:36 NatWest Group plc's (LON:NWG) high institutional ownership speaks for itself as stock continues to impress, up 3.8% over last week
Key Insights

Institutions' substantial holdings in NatWest Group implies that they have significant influence over the company's share price A total of 25 investors have a majority stake in the company with 50% ownership Insiders have been buying lately

We've discovered 1 warning sign about NatWest Group. View them for free.

To get a sense of who is truly in control of NatWest Group plc (LON:NWG), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 82% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, institutional investors ended up benefitting the most after the company hit UK£37b in market cap. One-year return to shareholders is currently 64% and last week’s gain was the icing on the cake.

Let's delve deeper into each type of owner of NatWest Group, beginning with the chart below.

View our latest analysis for NatWest Group LSE:NWG Ownership Breakdown April 14th 2025

What Does The Institutional Ownership Tell Us About NatWest Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that NatWest Group does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see NatWest Group's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:NWG Earnings and Revenue Growth April 14th 2025

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in NatWest Group. The company's largest shareholder is BlackRock, Inc., with ownership of 7.9%. With 5.3% and 4.9% of the shares outstanding respectively, Capital Research and Management Company and Massachusetts Financial Services Company are the second and third largest shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of NatWest Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of NatWest Group plc in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own UK£18m worth of shares. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in NatWest Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand NatWest Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for NatWest Group that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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10.04.25 12:30:00 Is the Options Market Predicting a Spike in NatWest Group (NWG) Stock?
Investors in NatWest Group plc NWG need to pay close attention to the stock based on moves in the options market lately. That is because the May 16, 2025 $5 Put had some of the highest implied volatility of all equity options today.

What is Implied Volatility?

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?

Clearly, options traders are pricing in a big move for NatWest Group shares, but what is the fundamental picture for the company? Currently, NatWest Group is a Zacks Rank #1 (Strong Buy) in the Banks - Foreign industry that ranks in the Top 9% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimate for the current quarter, while none have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 32 cents per share to 34 cents in that period.

Given the way analysts feel about NatWest Group right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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NatWest Group plc (NWG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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02.04.25 15:45:10 NatWest Group (NWG) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

NatWest Group in Focus

Headquartered in London, NatWest Group (NWG) is a Finance stock that has seen a price change of 17.9% so far this year. Currently paying a dividend of $0.38 per share, the company has a dividend yield of 6.35%. In comparison, the Banks - Foreign industry's yield is 3.7%, while the S&P 500's yield is 1.59%.

In terms of dividend growth, the company's current annualized dividend of $0.76 is up 72.7% from last year. NatWest Group has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 41.06%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, NatWest's payout ratio is 23%, which means it paid out 23% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for NWG for this fiscal year. The Zacks Consensus Estimate for 2025 is $1.42 per share, which represents a year-over-year growth rate of 6.77%.

Bottom Line

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, NWG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).

Story Continues

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NatWest Group plc (NWG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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26.03.25 19:42:42 Nigel Farage gets NatWest payout over debanking row
Nigel Farage’s Coutts account was closed by NatWest - Julian Simmonds

NatWest has paid Nigel Farage an undisclosed sum to settle a high-profile debanking dispute after his Coutts account was closed because of his political views.

The Reform UK leader and MP, who only last month said he was considering bringing criminal proceedings against the bank, said in a joint statement with NatWest that the issue was “resolved and settled” and that the bank had apologised.

Nick Candy, the billionaire property tycoon who last year renounced his Conservative Party membership to become Reform’s treasurer, played a central role in resolving the row, according to sources. Mr Farage and Mr Candy use the same law firm, Mayfair-based Grosvenor Law.Nick Candy, the Reform UK treasurer, helped to resolve the dispute - Geoff Pugh

Mr Farage’s settlement ends the long-running saga which erupted in 2023 and led to a national scandal over debanking.

NatWest, which owns Coutts, initially claimed Mr Farage’s account had been closed for commercial reasons but it was later revealed comments in support of Donald Trump and what Coutts claimed were “xenophobic, chauvinistic and racist views” had been a factor in the decision. Mr Farage said the claims were an “appalling slur”

Internal messages handed over to Mr Farage by NatWest later that year also showed that staff referred to him as a “crackpot” and an “awful human being”, while one said: “The money I’d have paid to have been the agent ringing him to tell him [that he had been debanked].” A dossier held on Mr Farage by NatWest ran to thousands of pages.

The fiasco led to the exit of NatWest’s former chief executive Dame Alison Rose, who at the time was the most senior woman in UK banking.

Dame Alison had admitted to being the source of an inaccurate BBC story that claimed Mr Farage’s accounts were shut for not holding enough money. She admitted a “serious error of judgment” in speaking to the journalist at a charity dinner about the matter.Dame Alison Rose left NatWest after admitting being the source of an inaccurate BBC story - Simon Dawson/Reuters

‘Establishment stitch-up’

A report by law firm Travers Smith subsequently found that although NatWest acted within the law in closing Mr Farage’s account there had been “serious failings” over the incident.

The saga, which led Mr Farage to claim that he was the victim of an “establishment stitch-up”, triggered a major political firestorm.

The Financial Conduct Authority (FCA) launched a review into how banks treated politicians amid claims some have struggled to open accounts, as well as a review into the scale of the general debanking problem.

Although it found that most cases of debanking were because of fraud or sanction risks, the treatment of customers came under scrutiny.

The Treasury last year put forward fresh legislation to force banks to give customers three months’ notice and a detailed explanation if they wish to close their accounts.

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Mr Farage has been left angry about the debacle ever since, last year arguing that “there has been no change of culture at the bank whatsoever.

He said: “They are paying out £350m in bonuses to the same people who abused me. I am left feeling that my efforts with this organisation have been in vain.”

It is not known how much he has now settled for, although Sky News said he was originally expected to seek millions of pounds from the company due to alleged damage to reputation.

Sky News also reported that Mr Farage has withdrawn the threat of potential civil and criminal proceedings against NatWest over the issue as a result of the settlement.

Mr Farage did not respond to further requests for comment.

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26.03.25 18:48:42 Farage and NatWest agree to settle debanking dispute
Nigel Farage has agreed to settle his debanking dispute with NatWest nearly two years after a row over the closure of his accounts, which culminated in the resignation of the lending giant’s chief executive.

The bank has apologised to the Reform UK leader and the terms of the agreement are confidential, according to a joint statement.

In July 2023, Mr Farage obtained internal evidence from the bank suggesting his account with Coutts, which is owned by NatWest Group, had been closed partly due to his political views.Dame Alison Rose resigned as chief executive of NatWest (Dominic Lipinski/PA)

Dame Alison Rose was then forced to stand down as chief executive after she admitted to being the source of an inaccurate story about the politician’s finances – which said the closure was instead for commercial reasons.

In a statement on Wednesday, Mr Farage and NatWest Group said: “NatWest Group and Nigel Farage MP are pleased to confirm that they have resolved and settled their dispute, and the bank has apologised to Mr Farage.

“The terms of the settlement are confidential.”

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26.03.25 16:00:03 What Makes NatWest Group (NWG) a Strong Momentum Stock: Buy Now?
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at NatWest Group (NWG), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. NatWest Group currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?

In order to see if NWG is a promising momentum pick, let's examine some Momentum Style elements to see if this bank holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For NWG, shares are up 1.87% over the past week while the Zacks Banks - Foreign industry is up 0.53% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 3.14% compares favorably with the industry's 3.17% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of NatWest Group have increased 19.67% over the past quarter, and have gained 81.91% in the last year. In comparison, the S&P 500 has only moved -4.08% and 12.14%, respectively.

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Investors should also take note of NWG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, NWG is averaging 9,696,184 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with NWG.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost NWG's consensus estimate, increasing from $1.32 to $1.42 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Given these factors, it shouldn't be surprising that NWG is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep NatWest Group on your short list.

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NatWest Group plc (NWG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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26.03.25 13:50:00 Zacks Investment Ideas feature highlights: NatWest, OppFi and HCI
For Immediate Release

Chicago, IL – March 26, 2025– Today, Zacks Investment Ideas feature highlights NatWest Group NWG, OppFi OPFI and HCI Group HCI.

Earnings Momentum Is Surging in This Industry

The Financial sector currently dominates the Zacks #1 Rank list, with 81 stocks, more than double the count of the next closest sector, Computers, which has 32. Analysts have been doling out huge upgrades to companies across the industry thanks to an improving regulatory environment and persistently high interest rates which improve margins.

Excluding energy, which I've covered in recent write-ups, and healthcare, the financial sector has been the top performer in the market year-to-date, outpacing the broader market index by over 5%. This relative strength indicates that not only are financial stocks experiencing improving fundamentals, but that fund managers are rotating into the sector.

Below I will be sharing three financial sector stocks, across subindustries that boast top Zacks Ranks, compelling valuations, and strong price momentum. NatWest Group, OppFi and HCI Group represent some of the most exciting opportunities in the market today.

OppFi: High Flying Stock Crushing Earnings Estimates

OppFi is a financial technology company that provides accessible credit products to underserved consumers. The company operates a digital lending platform focused on speed, transparency, and customer service.

The stock has surged 43% year-to-date and currently holds a Zacks Rank #1 (Strong Buy), supported by a strongly upward trending earnings revisions. Notably, OppFi has delivered four straight earnings beats, with surprise percentages ranging from 57% to 100%.

Despite the rally, shares still trade at just 10x forward earnings, suggesting room for further upside if the company continues to outperform expectations.

NatWest Group: Shares Trade at a Discount to Growth

NatWest Group is a major UK-based banking institution offering a wide range of retail and commercial financial services. The company continues to benefit from stable operations and a recovering European banking landscape.

It holds a Zacks Rank #1 (Strong Buy) and ranks in the top 21% of Zacks Industry Rank, reflecting solid analyst sentiment. Shares currently trade at just 8.5x forward earnings, below the industry average of 10.4x and right in line with its 10-year median.

What stands out is NatWest's PEG ratio of 0.87, based on projected earnings growth of 9.84% annually over the next three to five years—an attractive valuation for a stock with this growth profile.

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HCI Group: Stock Staging a Technical Breakout

HCI Group is a property and casualty insurance company with operations in homeowners insurance, real estate, and information technology services. The company is gaining attention for both strong fundamentals and a bullish technical setup.

HCI holds a Zacks Rank #1 (Strong Buy), with earnings estimates rising as much as 16% over the past month. The stock also, just broke out of a bull flag pattern today, indicating that the stock may be about to go on another major bull run.

Furthermore, HCI group is currently trading at a one year forward earnings multiple of just 9.3x. This is well below its 10-year median of 13x and significantly below the industry average of 31.3x.

Should Investors Buy Shares in OPFI, NWG and HCI?

The combination of strong earnings momentum, attractive valuations, and technical strength makes these three financial stocks stand out in today's market. While each company operates in a different corner of the financial sector—fintech, traditional banking, and insurance—they share a common thread: rising analyst confidence and favorable positioning in a shifting macro environment.

For investors looking to gain exposure to a sector benefiting from structural tailwinds and renewed institutional interest, OPFI, NWG, and HCI offer compelling opportunities. As always, do your own research, but these names are worth putting on your watchlist right now.

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HCI Group, Inc. (HCI) : Free Stock Analysis Report

NatWest Group plc (NWG) : Free Stock Analysis Report

OppFi Inc. (OPFI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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