FIRST Story

FRC -  USA Stock  

USD 183.03  3.29  1.77%

It appears FIRST REPUBLIC will continue to recover much faster as its share price surged up 0.77% today. The company current daily volatility is 1.94 percent, with a beta of 1.37 and an alpha of -0.01 over DOW. While some baby boomers are getting worried about banking, it is reasonable to go over FIRST REPUBLIC BANK. We will analyze why FIRST REPUBLIC investors may still consider a stake in the business.
Published over three weeks ago
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Is FIRST REPUBLIC (NYSE:FRC) a good short term trade as volatility builds up?
FIRST REPUBLIC BANK has roughly 5.09 B in cash with 531.26 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 29.24.
Macroaxis provides advice on FIRST REPUBLIC BANK to complement and cross-verify current analyst consensus on FIRST REPUBLIC BANK. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in FIRST REPUBLIC, 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 REPUBLIC 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 REPUBLIC'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 REPUBLIC 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 REPUBLIC. Your research has to be compared to or analyzed against FIRST REPUBLIC's peers to derive any actionable benefits. When done correctly, FIRST REPUBLIC'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 REPUBLIC BANK.

How important is FIRST REPUBLIC's Liquidity

FIRST REPUBLIC financial leverage refers to using borrowed capital as a funding source to finance FIRST REPUBLIC BANK ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FIRST REPUBLIC 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 REPUBLIC'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 REPUBLIC, but it might be worth checking our own buy vs. sell analysis

FIRST REPUBLIC 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 REPUBLIC BANK. Diversification will allow for the same portfolio return with reduced risk. The correlation table of FIRST REPUBLIC 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

A Deeper Perspective

We consider FIRST REPUBLIC very steady. FIRST REPUBLIC BANK secures Sharpe Ratio (or Efficiency) of 0.0695, which denotes the company had 0.0695% of return per unit of volatility over the last month. Our approach 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. We have found twenty-eight technical indicators for FIRST REPUBLIC BANK, which you can use to evaluate future volatility of the firm. Please confirm FIRST REPUBLIC BANK Mean Deviation of 1.39, downside deviation of 1.96, and Market Risk Adjusted Performance of 0.1302 to check if the risk estimate we provide is consistent with the expected return of 0.14%.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will price continue to rise in May 2021?

Current kurtosis is at 0.72. FIRST REPUBLIC BANK has relatively low volatility with skewness of 0.0 and kurtosis of 0.72. However, we advise all investors to independently investigate FIRST REPUBLIC BANK to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FIRST REPUBLIC's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact FIRST REPUBLIC's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on FIRST REPUBLIC Investment

Whereas few other entities under the banks?regional industry are still a bit expensive, FIRST REPUBLIC may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 FIRST REPUBLIC.

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 REPUBLIC BANK. Please refer to our Terms of Use for any information regarding our disclosure principles.

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