Should you shadow Arrowmark Financial (USA Stocks:BANX) insiders in September?
 | By Aina Ster | Macroaxis Story |
Arrowmark Financial Corp (USA Stocks: BANX), a prominent player in the Capital Markets and Asset Management industry, has been defying the market uptrend. Despite the company's shares trading at a typical day price of $16.76, which is significantly lower than its 52-week high of $18.82, the company's valuation market value stands at $16.65, suggesting that the stock might be undervalued. The company's payout ratio is at 1.09, indicating that it returns a significant portion of its earnings to its shareholders. Despite this, the number of shares short in the prior month was 2.5K, indicating a certain level of skepticism among investors. The company's beta of 0.57 suggests that it is less volatile than the market, which could be appealing to risk-averse investors. Analysts have a consensus of 'Buy' on the stock, with three strong buys and one buy. However, the analyst's highest estimated target price stands at a staggering $20.2M, while the lowest estimated target price is at $0.0, indicating a wide range of possibilities. The analyst's target price estimated value is at $1.154, suggesting potential for growth. The accumulation distribution of 321.51 and a short ratio of 0.01 further underline the potential for the stock's growth. However, the daily balance of power stands at -0.09, and the price action indicator is at -0.19, indicating some level of bearish sentiment in the market. The company's PE ratio stands at 22.24, which is relatively high, suggesting that investors are willing to pay a higher price for the company's earnings. The possible upside price is $18.29, while the possible downside price is $15.09, indicating a potential risk-reward scenario for investors. In conclusion, while Arrowmark Financial Corp's stock appears to be undervalued, it presents a potential investment opportunity. However, investors should consider the wide range of analyst target prices and the company's high PE ratio before making an investment decision. In this article, we will evaluate Arrowmark Financial Corp as a potential addition to your current portfolio. We will examine why it could be a game-changer for investors in Arrowmark Financial.
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Reviewed by Rifka Kats
Despite the recent market uptrend, Arrowmark Financial Corp (USA Stocks: BANX) seems to be defying the trend, presenting a potentially undervalued investment opportunity. The company's Jensen Alpha, a measure of risk-adjusted performance, stands at 0.0438, indicating that the stock has been generating a reasonable risk-adjusted return. The stock's 200-day moving average is 17.35, and it's currently trading at a low price of 16.65, slightly below its 52-week low of 13.48. Interestingly, the company's payout ratio is 1.0907, suggesting that it is returning a significant portion of its earnings to shareholders. However, the company's Value at Risk is -2.57, indicating a potential downside risk. Despite this, the company's shares short have decreased from 2.5K in the prior month to 139 currently, suggesting a decrease in bearish sentiment. Overall, Arrowmark Financial Corp presents a potentially undervalued investment opportunity, but investors should be aware of the potential risks involved.
Further analysis
Approximately 26.0% of Arrowmark Financial Corp's shares are held by institutions such as insurance companies. Insider ownership of Arrowmark Financial Corp refers to the proportion of the company's equity owned by its officers, directors, relatives of the leadership team, or anyone who has access to non-public information. For our latest analysis of Arrowmark, including its current ownership structure, please check out our recent report.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Arrowmark Financial Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Arrowmark Financial
How important is Arrowmark Financial's Liquidity
Arrowmark Financial financial leverage refers to using borrowed capital as a funding source to finance Arrowmark Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arrowmark Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Arrowmark Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Arrowmark Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Arrowmark Financial's total debt and its cash.
Breaking it down a bit more
The current indifference towards the small price fluctuations of Arrowmark Financial Corp could raise concerns from investors as the firm is trading at a share price of 16.65 on 16,066 in volume. The company management teams did not add any value to Arrowmark Financial investors in July. However, most investors can still diversify their portfolios with Arrowmark Financial Corp to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.6. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors. Arrowmark Financial Corp (BANX) has been defying the market uptrend, presenting a potential undervalued investment opportunity. The company, which operates in the Asset Management industry, has a net asset of $208.5M and a net income of $5.37M.Despite a 52-week high of $18.82, the stock's day typical price is currently $16.76, with a price to book ratio of 0.83X, suggesting it may be undervalued. The company's operating margin stands at 0.73%, with an EBITDA of $7.7M. Its payout ratio is 1.09, indicating a commitment to returning profits to shareholders. The five-year return is 7.42%, demonstrating steady growth over time. However, investors should note the company's total debt of $55.6M and a probability of bankruptcy at 65.84%. Despite these risks, the company's beta of 0.57 suggests it is less volatile than the market. With a target price of $22, Arrowmark Financial Corp may be an undervalued investment opportunity worth considering. .
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