The most bought stocks by Hargreaves Lansdown investors last week were FTSE 100 stocks Lloyds (LSE:LLOY), Legal & General, and Aviva. Conversely, the most sold shares were Rolls-Royce, Tesla, and BP.
Here are my thoughts on why this is the case:
- Lloyds is always among the most traded shares on the index, so it’s no surprise to see it at the top of the buying list.
- Legal & General is a dividend-paying favourite for many, and with renewed hostilities in the Middle East, some investors may have sought the relative safety of insurance.
- Aviva is another insurance giant and may have benefitted from the same trend as above.
- With Rolls-Royce shares hitting all-time highs, we may have seen some profit taking.
- Tesla is also hotly traded by investors. The delay of its robotaxi launch may have pushed some to sell.
- BP shares have moved sideways for some time, but pushed upwards following Israel’s first missile attack on Iran. Some investors may have seen this as an opportunity to sell.
What’s so special about Lloyds?
Lloyds remains a favourite among UK retail investors for several reasons. Its status as the country’s largest retail bank, with over 26m customers and a dominant presence on the high street, makes it a familiar and trusted name.
Lloyds also offers a strong dividend yield — currently near 4.5% — which is higher than the FTSE 100 average and attractive for income-focused investors seeking regular returns.
Meanwhile, Lloyds’ capital position and focus on the UK market provide a sense of stability, while its ongoing digital transformation and investment in technology enhance customer experience and operational efficiency.
Given this high volume of buying and selling activity, it’s likely that Lloyds is increasingly favoured by day traders. That would be my assumption, anyway.
Is Lloyds still cheap?
Banks typically reflect the health of the UK economy and that’s especially the case with Lloyds. As Lloyds doesn’t have an investment arm, its performance is highly dependent on macroeconomic factors.
This can also impact investor sentiment too, notably during the cost-of-living crisis when interest rates surged. The market was concerned that the macroeconomic environment would cause Lloyds to default, but the bank performed remarkably well. Still, the stock remained overlooked and undervalued for some time.
Today, Lloyds shares look to broadly be traded in line with FTSE 100 peers when adjusted for growth and dividends. For 2025, the forward price-to-earnings (P/E) ratio stands at 11.7 times. This falls to 8.4 times in 2026 and just 7 times by 2027 as earnings are forecast to rise at a good rate.
The dividend yield is projected to grow at a decent pace too, with expectations of 4.5% in 2025, 5.4% in 2026, and 6.1% in 2027. The dividend payout ratio is projected to remain disciplined, at 53% in 2025, 45% in 2026, and 43% in 2027, suggesting Lloyds is balancing rewarding shareholders with maintaining capital strength.
And with a price-to-book ratio below one times from 2026 onward, Lloyds may become undervalued relative to its asset base.
It’s definitely a stock worth considering, although it’s clearly not as cheap as it once was. I’m not adding to my shares, partially due to concentration risk.
