Why the Bendigo and Adelaide Bank Share Price Sank Today

What Happened to Bendigo and Adelaide Bank Ltd’s Share Price?

Shares in Bendigo and Adelaide Bank Ltd [ASX:BEN] suffered a blow in today’s mixed Aussie stock market, closing down by nearly 4.4%. Today’s price action ends a stellar run for Bendigo & Adelaide Bank — its share price hit a six-year high yesterday.

Why Did This Happen to BEN Shares?

This morning Bendigo and Adelaide Bank reported its result for the six months ending 31 December 2014. Revenue rose by 10.5% to $786 million, driving cash profit of $217.9 million, up almost 11%. This result almost exactly met analysts’ consensus forecasts.

A $24 million contribution from the recently acquired Rural Finance Corporation of Victoria accounted for almost half of the bank’s net interest income of $52.6 million.

Bendigo and Adelaide Bank will pay an interim dividend of 33 cents. That’s up two cents on the 2014 half year dividend.

Investors drove up the BEN share price hard into the result, so it seems the market was looking for the company to beat analysts’ forecasts. With the result ‘good’ but not spectacular, the stock gave up some ground today.

What Now for Bendigo and Adelaide Bank Ltd?

Bendigo and Adelaide Bank has successfully consolidated several financial businesses over the past few years. Profits and dividends have been on the rise, and today’s pullback in the share price gives you a slightly cheaper entry point.

You should view Bendigo and Adelaide Bank as an interesting alternative to an investment in Australia’s big four banks. Its features could make BEN a great stock for your portfolio. But if you’re seeking big potential rewards from exciting stocks that trade now for mere cents, go here to find out more .

Cheers, Tim Dohrmann
Small-Cap Analyst, Australian Small-Cap Investigator

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