First Story

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FHB -- USA Stock  

USD 29.44  0.95  3.33%

It appears First Hawaiian may not recover as fast as we have hopped for as its price went down 1.74% today. This firm current daily volatility is 4.18 percent, with a beta of 2.25 and an alpha of 0.61 over DOW. As many millenniums are trying to avoid the current volatility, we are going to go over First Hawaiian a little further to understand its historical price patterns. We will look into some reasons why it is still possible for First Hawaiian to maintain above-average margins while minimizing volatility.
Published over a month ago
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How risky is First Hawaiian after the current volatility rise?
First Hawaiian has roughly 976.21 M in cash with 226.37 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 7.46. Our investment recommendation module complements current analysts and expert consensus on First Hawaiian. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Investing in First Hawaiian, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding First Hawaiian along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of First Hawaiian's stock 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. Please use the tools below to analyze the current value of First Hawaiian in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as First Hawaiian. Your research has to be compared to or analyzed against First Hawaiian's peers to derive any actionable benefits. When done correctly, First Hawaiian's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in First Hawaiian.

How important is First Hawaiian's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for First Hawaiian, but it might be worth checking our own buy vs. sell analysis

First Hawaiian Correlation with Peers

Investors in First can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in First Hawaiian. Diversification will allow for the same portfolio return with reduced risk. The correlation table of First Hawaiian and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities First is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of First for more details

Payment of 1385 shares by Ravi Mallela of First Hawaiian subject to Rule 16b-3

Legal trades by First Hawaiian 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 payment of common stock by Ravi Mallela, Exec VP & CFO, on 1st of March 2021. This event was filed by First Hawaiian Inc with SEC on 2021-03-01. Statement of changes in beneficial ownership - SEC Form 4. Ravi Mallela currently serves as cfo, executive vice president treasurer of First Hawaiian [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 Hawaiian

First Hawaiian appears to be not too volatile, given 1 month investment horizon. First Hawaiian secures Sharpe Ratio (or Efficiency) of 0.16, which denotes the company had 0.16% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By reviewing First Hawaiian technical indicators you can presently evaluate if the expected return of 0.67% is justified by implied risk. Please utilize First Hawaiian Mean Deviation of 2.52, downside deviation of 2.74, and Coefficient Of Variation of 463.47 to check if our risk estimates are consistent with your expectations.
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0.710.810.610.9
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0.710.910.830.81
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0.810.910.850.91
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0.610.830.850.81
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0.90.810.910.81
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

How will First investors react to the next slip?

First Hawaiian current sortino ratio builds up over 0.28. First Hawaiian currently demonstrates below-verage downside deviation. It has Information Ratio of 0.18 and Jensen Alpha of 0.61. However, we do advice investors to further question First Hawaiian expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

Whereas some other firms within the banks?regional industry are still a little expensive, even after the recent corrections, First Hawaiian may offer a potential longer-term growth to investors. The bottom line, as of the 21st of January 2021, our primary 30 days buy-hold-sell advice on the company is Strong Buy. However, we believe First Hawaiian is currently overvalued with very low odds of financial 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 Raphi Shpitalnik do not own shares of First Hawaiian. Please refer to our Terms of Use for any information regarding our disclosure principles.

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