OFG Bancorp's average rating is Buy from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on OFG Bancorp market sentiment investors' perception of the future value of OFG Bancorp. Let us look at a few aspects of OFG Bancorp technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of OFG Bancorp. In general, sophisticated investors focus on analyzing OFG Bancorp stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build OFG Bancorp's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
OFG Bancorp's intrinsic value. In addition to deriving basic predictive indicators for OFG Bancorp, many experienced traders also check how macroeconomic factors affect OFG Bancorp price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of OFG Bancorp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as OFG Bancorp. Your research has to be compared to or analyzed against OFG Bancorp's peers to derive any actionable benefits. When done correctly, OFG Bancorp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in OFG Bancorp.
How important is OFG Bancorp's Liquidity
OFG Bancorp
financial leverage refers to using borrowed capital as a funding source to finance OFG Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. OFG Bancorp 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 OFG Bancorp'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 OFG Bancorp'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 OFG Bancorp's total debt and its cash.
OFG Bancorp Gross Profit
OFG Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing OFG Bancorp 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 OFG Bancorp Gross Profit growth over the last 10 years. Please check OFG Bancorp's
gross profit and other
fundamental indicators for more details.
Closer look at OFG Bancorp Downside Variance
OFG Bancorp has current Downside Variance of 4.85. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2 N(ER) |
| = | 4.85 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare OFG Bancorp Downside Variance to its closest peers:
| OFG | 4.850886797607904 |
| AX | 3.36 |
| BY | 5.98 |
| KB | 4.7 |
| EBMT | 3.17 |
Will price continue to surge in November 2020?
The mean deviation is down to 1.84 as of today. OFG Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.11. However, we do advice investors to further question OFG Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Conclusion on OFG Bancorp
Although other companies under the banks—regional industry are still a bit expensive, OFG Bancorp may offer a potential longer-term growth to shareholders. To summarize, as of the 23rd of October 2020, our analysis shows that OFG Bancorp almost mirrors the market. The firm is
fairly valued and projects
low probability of financial unrest for the next 2 years. Our overall 30 days 'Buy-vs-Sell' recommendation on the firm is
Strong Hold.
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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 OFG Bancorp. Please refer to our
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