Will Sterling Bancorp (NASDAQ:SBT) drop in September?
 | By Ellen Johnson | Macroaxis Story |
Considering the 60-day investment horizon Sterling Bancorp is expected to under-perform the market. In addition to that, the company is 2.49 times more volatile than its market benchmark. It trades about -0.01 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.05 per unit of volatility. As many old-fashioned traders are trying to avoid financial services space, it makes sense to review Sterling Bancorp a little further and try to understand its current volatility patterns. We are going to break down if the current expected returns justify Sterling Bancorp's volatility. Sterling Bancorp's very low volatility may have no significant impact on the stock's value as we estimate Sterling Bancorp as currently undervalued. The real value, based on our calculations, is getting close to 6.88 per share.
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Reviewed by Michael Smolkin
The company runs under Financial Services sector within Banks—Regional industry. Volatility is a rate at which the price of Sterling Bancorp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Sterling Bancorp may increase or decrease. In other words, similar to Sterling's beta indicator, it measures the risk of Sterling Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sterling Bancorp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Sterling Bancorp's Liquidity
Sterling Bancorp financial leverage refers to using borrowed capital as a funding source to finance Sterling Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sterling Bancorp 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 Sterling Bancorp'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 Sterling Bancorp'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 Sterling Bancorp's total debt and its cash.
Breaking down Sterling Bancorp Further
Sterling Bancorp reported the last year's revenue of 71.33 M. Reported Net Loss for the year was (6.61 M) with profit before taxes, overhead, and interest of 55.24 M.
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