The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price was out of form on Friday.
The regional bank's shares ended the day 1.5% lower at $9.94.
Why did the Bendigo and Adelaide Bank share price drop?
The weakness in Bendigo and Adelaide Bank share price on Friday was driven by the bank's shares going ex-dividend this morning for its final dividend.
Last month when the company released its full year results, it declared a fully franked 26.5 cents per share final dividend.
This morning the bank's shares traded without the rights to this dividend. When this happens, a share will drop in line with its dividend to reflect the fact that buyers won't be receiving it.
For those that are eligible to receive the Bendigo and Adelaide Bank dividend, they can look forward to receiving it on 30 September.
Is this a buying opportunity?
One leading broker that sees a lot of value in the Bendigo and Adelaide Bank share price is Macquarie.
Last month the broker put an outperform rating and $11.00 price target on its shares. Based on the latest Bendigo and Adelaide Bank share price, this implies potential upside of almost 11% over the next 12 months excluding dividends.
And with Macquarie forecasting a fully franked dividend of 55 cents per share in FY 2022, the potential return on offer here extends to just over 16%.
According to the note, its analysts believe the bank's growth strategy is delivering results. And while Macquarie acknowledges that the returns profile is soft, it feels this is already reflected in the multiples that its shares trades on.
All in all, the broker feels this makes the bank a good option for investors at the current level and has retained its outperform rating.
