Cambridge Story

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CATC -- USA Stock  

USD 48.35  0.29  0.60%

It looks like Enterprise Financial will continue to recover faster as its price went down 2.22% today to Cambridge Bancorp's 0.57%. As many rational traders are trying to avoid financial services space, it makes sense to go over Cambridge Bancorp a little further and understand how it stands against Enterprise Financial and other similar entities. We are going to analyze some of the competitive aspects of both Cambridge and Enterprise.
Published over a month ago
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Will Enterprise Financial investors switch to Cambridge (NASDAQ:CATC)?
By analyzing existing basic indicators between Cambridge Bancorp and Enterprise, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Enterprise with a short position in Cambridge Bancorp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cambridge Bancorp has an asset utilization ratio of 5.3 percent. This suggests that the company is making $0.053 for each dollar of assets. An increasing asset utilization means that Cambridge Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Cambridge or Byline is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Cambridge Bancorp dividends

A dividend is the distribution of a portion of Cambridge Bancorp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Cambridge Bancorp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Cambridge one year expected dividend income is about $1.38 per share.
As of September 25, 2020, Payment of Dividends and Other Cash Distributions is expected to decline to about (10.3 M). In addition to that, Dividend Yield is expected to decline to 0.0237.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-9.5 M-10.3 M
Dividend Yield 0.025  0.0237 
Dividends per Basic Common Share 2.04  1.94 
Investing in dividend-paying stocks, such as Cambridge Bancorp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Cambridge Bancorp must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Cambridge Bancorp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Cambridge Bancorp's Liquidity

Cambridge Bancorp financial leverage refers to using borrowed capital as a funding source to finance Cambridge Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cambridge 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. Please check the breakdown between Cambridge Bancorp's total debt and its cash.

Correlation Between Cambridge and Byline Bancorp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Cambridge Bancorp together with similar or unrelated positions with a negative correlation. For example, you can also add Byline Bancorp to your portfolio. If Byline Bancorp is not perfectly correlated to Cambridge Bancorp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Cambridge Bancorp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CATC and BY for more information.

Purchase by Gerlin Simon R of 190 shares of Cambridge Bancorp

Legal trades by Cambridge Bancorp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cambridge insider trading alert for perchase of common stock by Gerlin Simon R, the corporate stakeholder, on 15th of September 2020. This event was filed by Cambridge Bancorp with SEC on 2020-09-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Cambridge Bancorp revenue. Based on the latest financial disclosure, Cambridge Bancorp reported 113.01 M of revenue. This is 98.99% lower than that of the Financial Services sector and significantly higher than that of the Banks?Regional industry. The revenue for all United States stocks is 98.8% higher than that of Cambridge Bancorp. As for Enterprise Financial we see revenue of 260.18 M, which is much higher than that of the Banks?Regional

Cambridge113.01 Million
Enterprise260.18 Million
113 M
260.2 M

Cambridge Bancorp is projected to stay under $55 in September

Standard deviation is down to 3.75. It may suggest a possible volatility slip. Cambridge Bancorp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Cambridge Bancorp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Cambridge Bancorp future alpha.

Our Final Take On Cambridge Bancorp

Whereas some other companies in the banks?regional industry are either recovering or due for a correction, Cambridge may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 1st of August 2020, our final 30 days 'Buy-Sell' recommendation on the company is Cautious Hold. We believe Cambridge Bancorp is undervalued with close to average chance of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Cambridge Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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