Is Arrowmark Financial (USA Stocks:BANX) outlook positive for January 2024?
 | By Aina Ster | Macroaxis Story |
Arrowmark Financial Corp, a key player in the Financial Services sector and specifically in the Asset Management & Custody Banks industry, has been exhibiting steady growth in the market. As of the latest update on December 6, 2023, the company's stock, traded under the ticker BANX on NASDAQ, has been showing promising signs of further upside. The stock has been performing well, with a 52-week high of $17.99 and a low of $12.85. The current valuation market value stands at $17.08, which is close to the 50-day moving average of $17.17 and the 200-day moving average of $17.11. This indicates a stable performance, which is further supported by a low beta of 0.501, suggesting less volatility compared to the overall market. Analysts have a positive outlook on Arrowmark, with an overall consensus rating of 'Buy'. Out of the total analysts covering the stock, one has recommended a 'Buy' and three have given 'Strong Buy' ratings. The Wall Street target price stands at an impressive $22, indicating a potential upside from the current levels. However, investors should also consider the possible downside price of $15.62 and the valuation real value of $9.55. The company's PE ratio stands at 8.51, which is relatively low, suggesting that the stock could be undervalued. In terms of short interest, the shares short as of the prior month were 5.7K, which increased to 10.1K, but with a short ratio of 0.58, the risk from short selling is minimal. In conclusion, Arrowmark Financial Corp appears to be on a growth trajectory with potential for further upside. However, as with any investment, potential investors should carefully consider all factors before making a decision. The primary objective of this article is to provide investors with our insights on Arrowmark for January. We aim to project the potential value of Arrowmark Financial Corp stock for investors.
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Reviewed by Gabriel Shpitalnik
Arrowmark Financial Corp has a performance score of 7 out of 100. The company's Beta, a measure of market volatility, is 0.5307, indicating potential diversification benefits within a portfolio. As market returns increase, Arrowmark Financial's returns are expected to rise less than the market. Conversely, during a bear market, the losses from holding Arrowmark Financial are expected to be smaller.
While it's crucial to consider Arrowmark Financial Corp's historical returns, it's equally important to be realistic about the equity's current trending patterns. Our primary approach to predicting the future performance of any stock involves evaluating the business as a whole, along with its past performance, including all available fundamental and technical indicators.
By analyzing Arrowmark Financial Corp's technical indicators, you can currently assess whether the expected return of 0.12% will be sustainable in the future. At present, Arrowmark Financial Corp exhibits a risk of 1.32%.
Please verify Arrowmark Financial Corp's standard deviation, maximum drawdown, and the relationship between the maximum drawdown and expected shortfall to determine if Arrowmark Financial Corp will continue to follow its price patterns.
Major Takeaways
Arrowmark Financial Corp (BANX) has been demonstrating a steady growth trajectory, with a 200-day moving average of 17.11, inching closer to its 52-week high of 17.99. The company's risk-adjusted performance stands at 0.0587, indicating a relatively stable return when considering the level of risk. Furthermore, the Jensen Alpha, a measure of the excess return or added value in relation to the market as a whole, is at 0.0677, suggesting that the company has been generating a positive risk-adjusted return. With these factors in mind, Arrowmark's stock appears to have potential for further upside.
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
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Arrowmark Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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.
Arrowmark Financial Gross Profit
Arrowmark Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arrowmark Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Arrowmark Financial Gross Profit growth over the last 10 years. Please check Arrowmark Financial's gross profit and other fundamental indicators for more details.
Breaking it down a bit more
The modest gains experienced by current holders of Arrowmark Financial could raise concerns from investors as the firm is trading at a share price of 17.08 on very low momentum in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.32. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors. "In the world of finance, past performance is not indicative of future results, but it can certainly set the tone. Arrowmark Financial Corp (NASDAQ: BANX) has been exhibiting steady growth, with a five-year return of 7.42%.Its current ratio of 3.11X and operating margin of 0.77% indicate a strong financial position. The company's EBITDA stands at $7.7M, demonstrating a robust earning potential. Furthermore, Arrowmark's debt-to-equity ratio is a mere 0.35%, suggesting the firm has been managing its debt levels effectively. The Wall Street target price for BANX is $22, indicating potential upside. However, investors should be aware of the company's probability of bankruptcy at 65.75%. Despite the promising figures, the market always carries risk, and careful analysis is crucial before making investment decisions." .
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