Ocwen Story

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OCN -- USA Stock  

USD 24.00  0.51  2.08%

Despite quite unsteady basic indicators, Ocwen Financial may actually be approaching a critical reversion point that can send shares even higher in October 2020. Will institutional investors continue to hold, or should we expect a sell-off?
Published over two months ago
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Does Ocwen Financial (NYSE:OCN) have persistent basic indicators based on the latest rise?
Ocwen Financial is OVERVALUED at 15.90 per share with modest projections ahead. Ocwen Financial is slightly risky given 1 month investment horizon. Ocwen Financial NEW maintains Sharpe Ratio (i.e. Efficiency) of 0.18, which implies the firm had 0.18% of return per unit of risk over the last month. Our standpoint towards forecasting the risk of a stock is to use both market data as well as company specific technical data. We were able to interpolate twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.42% are justified by taking the suggested risk. Use Ocwen Financial Semi Deviation of 3.93, coefficient of variation of 806.38, and Risk Adjusted Performance of 0.1462 to evaluate company specific risk that cannot be diversified away.
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 Ocwen Financial income statement, its balance sheet, and the statement of cash flows. Potential Ocwen Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Ocwen Financial investors may use each financial statement separately, they are all related. The changes in Ocwen Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ocwen Financial'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 Ocwen Financial fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Ocwen Financial performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Ocwen Financial shares is the value that is considered the true value of the share. If the intrinsic value Ocwen 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 Ocwen Financial. Please read more on our fundamental analysis page.

What is Ocwen Asset Breakdown?

Ocwen Financial reports assets on its Balance Sheet. It represents the amount of Ocwen resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Ocwen volatility, please check the breakdown of all its fundamentals

How Ocwen utilizes its cash?

To perform a cash flow analysis of Ocwen Financial, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ocwen Financial is receiving and how much cash it distributes out in a given period. The Ocwen Financial cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Ocwen Financial Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 155.94 Million

Ocwen Financial Gross Profit

Ocwen Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ocwen Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ocwen Financial Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Exercise or conversion by John Britti of 2326 shares of Ocwen Financial subject to Rule 16b-3

Legal trades by Ocwen Financial 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:
Ocwen insider trading alert for exercise of restricted stock units by John Britti, EVP & Chief Investment Officer, on 16th of November 2020. This event was filed by Ocwen Financial Corp with SEC on 2020-11-16. Statement of changes in beneficial ownership - SEC Form 4. John Britti currently serves as executive vice president, chief investment officer of Ocwen Financial NEW [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 a bit more

There are few distinct groups of Ocwen Financial stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Ocwen is distributed among investors.

Ownership Allocation

Ocwen Financial NEW has a total of 8.7 Million outstanding shares. Over half of Ocwen Financial NEW outstanding shares are owned by third-party entities. These third-party entities are typically referred to corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Ocwen Financial. Please watch out for any change in the institutional holdings of Ocwen Financial NEW as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Retail Investors
25.92%
Insiders
8.84%
Institutions
65.24%
Retail Investors25.92
Insiders8.84
Institutions65.24

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ocwen Financial has an asset utilization ratio of 13.96 percent. This suggests that the company is making $0.14 for each dollar of assets. An increasing asset utilization means that Ocwen Financial is more efficient with each dollar of assets it utilizes for everyday operations.

Goodwill
1.3 B
Goodwill1.27 Billion93.85
Tax Assets83.4 Million6.15

Our perspective of the latest Ocwen Financial rise

Potential upside is down to 11.63. It may entail a possible volatility slide. Ocwen Financial is displaying above-average volatility over the selected time horizon. Investors should scrutinize Ocwen Financial independently to ensure intended market timing strategies are aligned with expectations about Ocwen Financial volatility.

Our Final Take On Ocwen Financial

Whereas few other entities within the mortgage finance industry are still a little expensive, even after the recent corrections, Ocwen Financial may offer a potential longer-term growth to institutional investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor trade any shares of Ocwen Financial at this time. The Ocwen Financial risk-reward trade off 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 Ocwen Financial.

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 Ocwen Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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