Guild Story

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GHLD -- USA Stock  

USD 13.64  0.17  1.23%

Guild Holdings is currently does not generate positive expected returns and assumes 2.0606% risk (volatility on return distribution) over the 60 days horizon. As many old-fashioned traders are trying to avoid financial services space, it makes sense to digest Guild Holdings a little further and try to understand its current volatility patterns. What exactly are Guild Holdings shareholders getting in April?
Published over three weeks ago
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Is Guild Holdings (NYSE:GHLD) a good hedge for your existing portfolios?
Guild Holdings currently holds 2.86 B in liabilities with Debt to Equity (D/E) ratio of 5.65, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. This firm has a current ratio of 1.71, which is within standard range for the sector.
Volatility is a rate at which the price of Guild Holdings or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Guild Holdings may increase or decrease. In other words, similar to Guild's beta indicator, it measures the risk of Guild Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Guild Holdings fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Guild Holdings's Liquidity

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

How Guild utilizes its cash?

To perform a cash flow analysis of Guild Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Guild Holdings is receiving and how much cash it distributes out in a given period. The Guild Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Guild Holdings Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (468.04 Million)

Guild Holdings Volatility Drivers

Guild Holdings unsystematic risk is unique to Guild Holdings and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Guild Holdings you can also buy Encore Capital Group. You can also mitigate this risk by investing in the mortgage finance sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Guild Holdings important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Guild Holdings income statement and balance sheet. Here are more details about Guild volatility.
Click cells to compare fundamentals

An Additional Perspective On Guild Holdings

The small dip in market price for the last few months may raise some interest from shareholders. The stock closed today at a share price of 15.10 on 14,300 in trading volume. The company executives did not add much value to Guild Holdings investors in February. However, diversifying your holdings with Guild Holdings or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.06. The current volatility is consistent with the ongoing market swings in February 2021 as well as with Guild Holdings unsystematic, company-specific events.

Will Guild pull back in April 2021?

Latest value at risk is at -3.4.
As of the 21st of March, Guild Holdings retains the market risk adjusted performance of 0.3994, and Risk Adjusted Performance of (0.040357). Guild Holdings technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Guild Holdings, which can be compared to its competitors. Please check out Guild Holdings standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if Guild Holdings is priced fairly, providing market reflects its last-minute price of 15.1 per share. Given that Guild Holdings has jensen alpha of (0.08), we strongly advise you to confirm Guild Holdings's regular market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Guild Holdings

Although other companies under the mortgage finance industry are still a bit expensive, Guild Holdings may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Guild as the current risk-reward utility is not appealing enough. 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 Guild Holdings.

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 Vlad Skutelnik do not own shares of Guild Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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