The Barclays share price could be in for an interesting week as it’s revealed Sherborne Investors has sold its 6% holding.
For the last year, activist Investor Edward Bransom has pursued a seat on the Board of the UK’s second-largest bank. The firm finally admitted defeat and revealed it has liquidated its $2.5 Billion stake.
The Barclays share price finished the week at 181.54p and +2.51% on the day.
Unlike many of its high-street peers in the U.K, Barclays has a more aggressive, Investment banking approach to risk. An approach that CEO Jes Staley, a 30 year veteran of wall street giant J.P Morgan, is now free to continue.
Bransom had petitioned to scale back the Bank’s risk-taking and give more focus to traditional banking activities. With the fight now over, what comes next for the Barclays share price?
The Barclays share price has had a good run so far in 2021 and at its current level is up 26.60% so far this year.
Friday’s gain helped it close back above the 50-Day Moving Average after spending most of the week below the marker.
The stock has consistently attempted to break above the 190p mark. Between the 29th of March and the 29th of April, The share price tested the level 16 times.
It remains to be seen how the share price reacts to the news next week. On one hand, investors may have been holding the stock in the belief that Sherborne Investors would succeed. Do those investors now sell?
The positive take is that the market has absorbed the selling extremely well. With that selling now gone, can the Barclays share price finally break the elusive 190p per share mark?
A close above 192p, the three-year high, set in December 2019, would leave the door open for the price to test the March 2018 high at 217.40p.
A close below the 50-Day MA at 179.85p would target the 100-Day Average at 163.35p
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