The newest indifference towards the small price fluctuations of Sterling Bancorp created some momentum for private investors as it was traded today as low as 4.71 and as high as 4.91 per share. The company directors and management did not add any value to Sterling Bancorp investors in July. However, most investors can still diversify their portfolios with Sterling Bancorp to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.85. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Will Sterling Bancorp (NASDAQ:SBT) low risk outlook last untill September?
 | By Ellen Johnson | Macroaxis Story |
Sterling Bancorp is generating 0.0397% of daily returns assuming volatility of 1.853% on return distribution over 60 days investment horizon. While some of us are excited about financial services space, it makes sense to review Sterling Bancorp in greater detail to make a better estimate of its risk and reward. We will break down if the expected returns on Sterling Bancorp will justify its current 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 7.15 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
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