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.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include FIRST REP income statement, its balance sheet, and the statement of cash flows. Potential FIRST REP investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although FIRST REP investors may use each financial statement separately, they are all related. The changes in FIRST REP's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on FIRST REP's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of FIRST REP
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of FIRST REP performance into the future periods or doing a reasonable stock valuation. The intrinsic value of FIRST REP shares is the value that is considered the true value of the share. If
the intrinsic value of FIRST is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares FIRST REP. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring FIRST REP on a daily basis if you are holding a position in it. FIRST REP is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as FIRST REP stock to be traded above the $1 level to remain listed. If FIRST REP stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
And What about dividends?
A dividend is the distribution of a portion of FIRST REP 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 REP 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 USD0.36 per share.
Investing in stocks that pay
dividends, such as stock of FIRST REP BK, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in FIRST REP 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 REP. 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 REP's Liquidity
FIRST REP
financial leverage refers to using borrowed capital as a funding source to finance FIRST REP BK ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FIRST REP 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. Financial leverage can amplify the potential profits to FIRST REP's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of FIRST REP's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between FIRST REP's total debt and its cash.
A Deeper Perspective
Many companies such as FIRST REPUBLIC have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of FIRST is distributed among investors.
Ownership Allocation
FIRST REPUBLIC BANK retains a total of 174.23 Million outstanding shares. The majority of FIRST REPUBLIC BANK
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in FIRST REPUBLIC BANK to benefit from reduced commissions. Therefore, institutional investors are subject to a different set of regulations than regular investors in FIRST REPUBLIC. Please pay attention to any change in the institutional holdings of FIRST REPUBLIC BANK as this could imply that something significant has changed or about to change at the company. Also note that almost three million four hundred eighty-four thousand six hundred invesors are currently shorting FIRST REPUBLIC expressing very little confidence in its
future performance.
| Retail Investors | -2.4 |
| Insiders | 0.82 |
| Institutions | 101.58 |
| 2018 | 2019 | 2020 | 2021 (projected) |
Revenues | 3.58 B | 4.16 B | 4.51 B | 4.86 B | Net Income | 853.83 M | 930.33 M | 1.06 B | 1.15 B |
FIRST is expecting lower volatility in May
The kurtosis is down to 0.76 as of today. FIRST REPUBLIC BANK has relatively low volatility with skewness of 0.06 and kurtosis of 0.76. 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 Final Take On FIRST REPUBLIC
Whereas other companies within the banks—regional industry are still a little expensive, even after the recent corrections, FIRST REPUBLIC may offer a potential longer-term growth to investors. The inconsistency in the assessment between current FIRST valuation and our trade advice on FIRST REPUBLIC is due to the recent market swings and your selection of investing horizon. 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.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 REP BK. Please refer to our
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