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GBLI -- USA Stock  

USD 21.05  0.40  1.86%

It looks like HCI will continue to recover much faster as its share price surged up 0.75% today to Global Indemnity's 16.8818%. As many rational traders are trying to avoid financial services space, it makes sense to concentrate on Global Indemnity Limited a little further and understand how it stands against HCI and other similar entities. We are going to examine some of the competitive aspects of both Global and HCI.
Published over three weeks ago
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Will HCI (NYSE:HCI) and Global Indemnity (NASDAQ:GBLI) deliver in September?
By analyzing existing basic indicators between Global Indemnity and HCI, 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 HCI with a short position in Global Indemnity. 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. Global Indemnity has an asset utilization ratio of 29.81 percent. This implies that the company is making $0.3 for each dollar of assets. An increasing asset utilization means that Global Indemnity Limited 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 Global or FedNat is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Global Indemnity dividends

A dividend is the distribution of a portion of Global Indemnity 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. Global Indemnity 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. Global one year expected dividend income is about $0.58 per share.
The current Dividend Yield is estimated to increase to 0.0358, while Payment of Dividends and Other Cash Distributions is projected to decrease to (15.3 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-14.2 M-15.3 M
Dividend Yield 0.034  0.0358 
Dividends per Basic Common Share 0.90  0.89 
Investing in dividend-paying stocks, such as Global Indemnity Limited is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Global Indemnity 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 Global Indemnity. 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 Global Indemnity's Liquidity

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

Correlation Between Global and FedNat Holding

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 Global Indemnity together with similar or unrelated positions with a negative correlation. For example, you can also add FedNat Holding to your portfolio. If FedNat Holding is not perfectly correlated to Global Indemnity 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 Global Indemnity 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 GBLI and FNHC for more information.

Note

Are you currently holding both Global Indemnity and FedNat Holding in your portfolio? Please note if you are using this as a pair-trade strategy between Global Indemnity and FedNat Holding, 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.

Global Indemnity exotic insider transaction detected

Legal trades by Global Indemnity 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:
Global insider trading alert for general transaction of class a common shares by Jason Hurwitz, the corporate stakeholder, on 17th of September 2020. This event was filed by Global Indemnity Group Ll with SEC on 2020-09-17. 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.

Breaking down Global Indemnity Indicators

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 Global Indemnity revenue. Based on the latest financial disclosure, Global Indemnity Limited reported 583.51 M of revenue. This is 94.79% lower than that of the Financial Services sector and significantly higher than that of the Insurance?Property & Casualty industry. The revenue for all United States stocks is 93.82% higher than that of Global Indemnity. As for HCI we see revenue of 259.31 M, which is much higher than that of the Insurance?Property & Casualty

Global583.51 Million
Sector0.0
HCI259.31 Million
583.5 M
Global
Sector
259.3 M
HCI

Our perspective of the current Global Indemnity rise

The total risk alpha is down to -0.71 as of today. Global Indemnity Limited exhibits very low volatility with skewness of -2.56 and kurtosis of 13.55. However, we advise investors to further study Global Indemnity Limited technical indicators to make sure all market info is available and is reliable.

Our Takeaway on Global Indemnity Investment

While some other entities under the insurance?property & casualty industry are still a bit expensive, Global Indemnity may offer a potential longer-term growth to stockholders. To conclude, as of the 29th of August 2020, our research shows that Global Indemnity is a rather somewhat reliable investment opportunity with a below average chance of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our concluding 30 days buy-or-sell advice on the company is Strong Sell.

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 Achuva Shats do not own shares of Global Indemnity Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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