First Story

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FGBI -- USA Stock  

USD 17.96  0.26  1.47%

As many rational traders are trying to avoid financial services space, it makes sense to concentrate on First Guaranty Bancshares a little further and understand how it stands against Enterprise Bancorp and other similar entities. We are going to examine some of the competitive aspects of both First and Enterprise.
Published over three weeks ago
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Should you drop your Enterprise Bancorp (NASDAQ:EBTC) and First Guaranty (NASDAQ:FGBI) positions after a boost?
By analyzing existing basic indicators between First Guaranty 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 First Guaranty. 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. First Guaranty has an asset utilization ratio of 5.05 percent. This implies that the company is making $0.0505 for each dollar of assets. An increasing asset utilization means that First Guaranty Bancshares 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 First or Eagle is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING First Guaranty dividends

A dividend is the distribution of a portion of First Guaranty 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. First Guaranty 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. First one year expected dividend income is about $0.37 per share.
First Guaranty Dividends per Basic Common Share is most likely to increase slightly in the upcoming years. The last year's value of Dividends per Basic Common Share was reported at 0.60.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact345.6 K354.7 K
Payment of Dividends and Other Cash Distributions-5.8 M-6.3 M
Dividend Yield 0.027  0.0409 
Dividends per Basic Common Share 0.60  0.89 
Investing in dividend-paying stocks, such as First Guaranty Bancshares is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in First Guaranty 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 First Guaranty. 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 First Guaranty's Liquidity

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

Correlation Between First and Eagle Bancorp Montana

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 First Guaranty together with similar or unrelated positions with a negative correlation. For example, you can also add Eagle Bancorp to your portfolio. If Eagle Bancorp is not perfectly correlated to First Guaranty 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 First Guaranty 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 FGBI and EBMT for more information.

First Guaranty exotic insider transaction detected

Legal trades by First Guaranty 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:
First insider trading alert for general transaction of first guaranty bancshares inc. $1 par common stock by Eric Dosch, SVP and CFO, on 23rd of November 2020. This event was filed by First Guaranty Bancshares with SEC on 2020-11-23. Statement of changes in beneficial ownership - SEC Form 4. Eric Dosch currently serves as cfo, secretary, treasurer, cfo of first guaranty bank and secretary of first guaranty bank of First Guaranty Bancs [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.

Detailed Perspective On First Guaranty

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

Lets now take a look at First Guaranty revenue. Based on the latest financial disclosure, First Guaranty Bancshares reported 73.73 M of revenue. This is 99.34% 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 99.22% higher than that of First Guaranty. As for Enterprise Bancorp we see revenue of 132.36 M, which is much higher than that of the Banks?Regional

First73.73 Million
Sector0.0
Enterprise132.36 Million
73.7 M
First
Sector
132.4 M
Enterprise

Will First Guaranty growth be reasonable after the rise?

Potential upside is down to 4.68. It may hint to a possible volatility drop. First Guaranty Bancshares currently demonstrates below-verage downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.26. However, we do advice investors to further question First Guaranty Bancshares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on First Guaranty Investment

While some firms under the banks?regional industry are still a bit expensive, First Guaranty may offer a potential longer-term growth to stockholders. To conclude, as of the 31st of October 2020, our research shows that First Guaranty is a rather not too volatile investment opportunity with a below average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our latest 30 days buy-or-sell advice on the company is Strong Hold.

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 Gabriel Shpitalnik do not own shares of First Guaranty Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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