Central Story

<div class='circular--portrait' style='background:#347AFC;color: #ffffff;font-size:4em;'>CV</div>
CVCY -- USA Stock  

USD 14.68  0.10  0.68%

Enterprise Bancorp would recover faster from the current slip as its shares price went up 1.53% to Central Valley's 1.56%As many rational traders are trying to avoid financial services space, it makes sense to break down Central Valley Community a little further and understand how it stands against Enterprise Bancorp and other similar entities. We are going to inspect some of the competitive aspects of both Central and Enterprise.
Published over a week ago
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Are retail investors acquiring Central Valley (NASDAQ:CVCY) or Enterprise Bancorp?
By analyzing existing basic indicators between Central Valley 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 Central Valley. 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. Central Valley has an asset utilization ratio of 5.67 percent. This suggests that the company is making $0.0567 for each dollar of assets. An increasing asset utilization means that Central Valley Community 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 Central or EAGLE is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Central Valley dividends

A dividend is the distribution of a portion of Central Valley 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. Central Valley 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. Central one year expected dividend income is about $0.28 per share.
Preferred Dividends Income Statement Impact is likely to rise to about 329.7 K in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (6 M) in 2020.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact315 K329.7 K
Payment of Dividends and Other Cash Distributions-5.8 M-6 M
Dividend Yield 0.02  0.019 
Dividends per Basic Common Share 0.43  0.36 
Investing in dividend-paying stocks, such as Central Valley Community is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Central Valley 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 Central Valley. 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 Central Valley's Liquidity

Central Valley financial leverage refers to using borrowed capital as a funding source to finance Central Valley Community ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Central Valley 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 Central Valley's total debt and its cash.

Correlation Between Central and EAGLE FINANCIAL SERV

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 Central Valley together with similar or unrelated positions with a negative correlation. For example, you can also add EAGLE FINANCIAL to your portfolio. If EAGLE FINANCIAL is not perfectly correlated to Central Valley 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 Central Valley 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 CVCY and EFSI for more information.

Note

Are you currently holding both Central Valley and EAGLE FINANCIAL in your portfolio? Please note if you are using this as a pair-trade strategy between Central Valley and EAGLE FINANCIAL, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by William Smittcamp of 5000 shares of Central Valley subject to Rule 16b-3

Legal trades by Central Valley 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:
Central insider trading alert for exercise of cvcy 2005 omnibus incentive plan by William Smittcamp, the corporate stakeholder, on 14th of September 2020. This event was filed by Central Valley Community with SEC on 2020-09-14. 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

Now, let's check Central Valley revenue. Based on the latest financial disclosure, Central Valley Community reported 72.33 M of revenue. This is 99.35% 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 99.23% higher than that of Central Valley. As for Enterprise Bancorp we see revenue of 128.62 M, which is much higher than that of the Banks?Regional

Central72.33 Million
Sector0.0
Enterprise128.62 Million
72.3 M
Central
Sector
128.6 M
Enterprise

Will Central investors exit after the slide?

Current treynor ratio indicator falls down to -0.94. Possible price jump? Central Valley Community exhibits very low volatility with skewness of -0.23 and kurtosis of 0.44. However, we advise investors to further study Central Valley Community technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Central Valley

While some other companies in the banks?regional industry are either recovering or due for a correction, Central may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Central nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Central Valley.

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 Central Valley Community. Please refer to our Terms of Use for any information regarding our disclosure principles.

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