Barclays Shares (BARC.L) Add 24% This Year – Here’s Why

Barclays' (LON: BARC) share price has surged an impressive 24% so far this year, pushing its stock price back to levels last seen in February 2023. 

Trading around the 192.24p per share mark, Barclays has also posted around a 25% gain over the last 12 months. The lack of any real momentum to the upside over the years has frustrated investors, so what's causing this push higher?

The Barclays stock price has been fueled by a strategic overhaul announced in February 2024. This plan is spearheaded by CEO C.S. Venkatakrishnan, who aims to streamline the business and unlock shareholder value.

A key driver of investor confidence is the restructuring into five distinct divisions, focusing on core strengths in UK and US consumer banking, alongside corporate banking and wealth management. This move is expected to improve efficiency and profitability.

Barclays has also committed to returning a significant portion of its earnings to shareholders through dividends and share buybacks. By 2026, the bank plans to distribute £10 billion, a move that has been met with enthusiasm by investors.

The turnaround strategy comes after a challenging period for banking stocks, including the impact of the pandemic and the US banking crisis. Barclays' proactive approach appears to be signaling a brighter future, with investors responding positively. The focus on core businesses and shareholder returns positions Barclays for sustainable growth.

In a recent client note, analysts at Peel Hunt initiated Barclays with a Buy rating and 245p per share price target. The firm stated that many of the current issues weighing on UK bank valuations will subside in the coming years, which they believe could lead to “significant share price appreciation.”