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Why is the Bank of Queensland share price outperforming today?

Happy man at an ATM.

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The Bank of Queensland Limited (ASX: BOQ) share price is outperforming on Wednesday.

In morning trade, the regional bank’s 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 bank’s shares.

According to a change of director’s interest notice, Bank of Queensland’s 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 bank’s 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 company’s 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) BOQ’s 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) BOQ’s 12-month forward PER (ex-dividend adjusted) is trading at a 30% discount to the sector versus a 15-year average discount of 2%.

Read More: Why is the Bank of Queensland share price outperforming today?

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