Will OFG Bancorp (USA Stocks:OFG) low risk outlook last untill February?

OFG Stock  USD 25.82  0.82  3.28%   
OFG Bancorp is generating negative expected returns assuming volatility of 1.4249% on return distribution over 60 days investment horizon. Although many risk-takers are getting more into banks space, some of us are not very happy with OFG Bancorp's current volatility. We will go over odds for OFG Bancorp to generate above-average margins next week.
Published over a month ago
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Reviewed by Michael Smolkin

OFG Bancorp runs under Banks sector within Financials industry.
Volatility is a rate at which the price of OFG Bancorp 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 OFG Bancorp may increase or decrease. In other words, similar to OFG Bancorp's beta indicator, it measures the risk of OFG Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of OFG Bancorp 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 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. Please check the breakdown between OFG Bancorp's total debt and its cash.

How does OFG Bancorp utilize its cash?

To perform a cash flow analysis of OFG Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash OFG Bancorp is receiving and how much cash it distributes out in a given period. The OFG Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
OFG Bancorp Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 164.46 Million

OFG Bancorp Volatility Drivers

OFG Bancorp unsystematic risk is unique to OFG Bancorp 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 OFG Bancorp you can also buy Home Depot. You can also mitigate this risk by investing in the financials 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 OFG Bancorp 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 OFG Bancorp income statement and balance sheet. Here are more details about OFG Bancorp volatility.
Click cells to compare fundamentals

What is driving OFG Bancorp Investor Appetite?

The small dip in market price for the last few months may encourage shareholders to take a closer look at the company as it is trading at a share price of 27.27 on 150,518 in trading volume. The company management teams did not add much value to OFG Bancorp investors in December. However, diversifying your holdings with OFG Bancorp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.42. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

OFG Bancorp is likely finish below USD28 in 30 days

Latest maximum drawdown is at 8.67. OFG Bancorp has relatively low volatility with skewness of -0.4 and kurtosis of 1.78. However, we advise all investors to independently investigate OFG Bancorp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OFG Bancorp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact OFG Bancorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

When is the right time to buy or sell OFG Bancorp? Buying stocks such as OFG Bancorp isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
The inconsistency in the assessment between current OFG Bancorp valuation and our trade advice on OFG Bancorp is due to the recent market swings and your selection of investing horizon. 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 OFG Bancorp.

Editorial Staff

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 Terms of Use for any information regarding our disclosure principles.

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