Impac Stock Story

IMH

Stock

USD 0.40 0.01 2.44%

Macroaxis Story

As many rational traders are trying to avoid financial services space, it makes sense to concentrate on Impac Mortgage Holdings a little further and understand how it stands against Monroe Capital and other similar entities. We are going to examine some of the competitive aspects of both Impac and Monroe.

Published over three weeks ago

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Is Monroe more volatile than Impac Mortgage Holdings (NYSEMKT:IMH)?

By analyzing existing primary indicators between Impac Mortgage and Monroe, 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 Monroe with a short position in Impac Mortgage. 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. Impac Mortgage has an asset utilization ratio of 0.0553 percent. This implies that the company is making $5.53E-4 for each dollar of assets. An increasing asset utilization means that Impac Mortgage Holdings is more efficient with each dollar of assets it utilizes for everyday operations.

Is Monroe more volatile than Impac Mortgage Holdings (NYSEMKT:IMH)?

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 Impac or Altisource is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Impac Mortgage's Liquidity

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

Correlation Between Impac and Altisource Portfolio

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 Impac Mortgage together with similar or unrelated positions with a negative correlation. For example, you can also add Altisource Portfolio to your portfolio. If Altisource Portfolio is not perfectly correlated to Impac Mortgage 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 Impac Mortgage 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 IMH and ASPS for more information.

Note

Are you currently holding both Impac Mortgage and Altisource Portfolio in your portfolio?

Please note if you are using this as a pair-trade strategy between Impac Mortgage and Altisource Portfolio, 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.

Impac Mortgage exotic insider transaction detected

Legal trades by Impac Mortgage 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:

Impac insider trading alert for general transaction of non- qualified stock option (right to buy) by George Mangiaracina, CHAIRMAN CHIEF EXEC. & DIR., on 3rd of March 2022. This event was filed by Impac Mortgage Holdings I with SEC on 2022-03-03. Statement of changes in beneficial ownership - SEC Form 4. George Mangiaracina currently serves as chairman of the board, president, chief executive officer of Impac Mortgage Holdings [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 it down

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 Impac Mortgage revenue. Based on the latest financial disclosure, Impac Mortgage Holdings reported 3.02 M of revenue. This is 99.97% lower than that of the Financial Services sector and significantly higher than that of the Mortgage Finance industry. The revenue for all United States stocks is 99.97% higher than that of Impac Mortgage. As for Monroe Capital we see revenue of 53.83 M, which is much higher than that of the Mortgage Finance

MRCC

53.8 M

IMH	3.02 Million	5.31
Sector	0.0	0.0
MRCC	53.83 Million	94.69

Does Impac Mortgage have anything more to lay out in July?

Variance is down to 15.44. It may hint to a possible volatility drop. Impac Mortgage Holdings exhibits very low volatility with skewness of 0.36 and kurtosis of 0.37. However, we advise investors to further study Impac Mortgage Holdings technical indicators to make sure all market info is available and is reliable. Impac Mortgage Holdings is a potential penny stock. Although Impac Mortgage may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Impac Mortgage Holdings. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Impac instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Takeaway

While many other companies in the mortgage finance industry are either recovering or due for a correction, Impac Mortgage may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 9th of July 2022, we believe Impac Mortgage is currently overvalued. It follows the market closely and projects average probability of distress in the next two years. Our primary 90 days buy vs. sell advice on the company is Strong Sell.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. 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 Ellen Johnson do not own shares of Impac Mortgage Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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