Old National Story

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ONB -- USA Stock  

USD 16.51  0.28  1.67%

Lets try to go over the odds of Old National to fully recover from the current slip as its shares went up 2.99%. Old National Bancorp's current daily volatility is 2.03 percent, with a beta of 0.29 and an alpha of 0.01 over DOW. While some baby boomers are getting worried about banking, it is reasonable to go over Old National Bancorp. We will evaluate if Old National shares are reasonably priced going into November.
Published over a month ago
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Is Old National (NASDAQ:ONB) a good short term trade as volatility builds up?
Old National Bancorp has roughly 475.86 M in cash with 123.82 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.88. Our trade recommendations tool can cross-verify current analyst consensus on Old National Bancorp and to analyze the firm potential to grow in the current economic cycle.
Investing in Old National, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Old National along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Old National's Liquidity

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

How Old National utilizes its cash?

To perform a cash flow analysis of Old National, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Old National is receiving and how much cash it distributes out in a given period. The Old National cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Old National Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 233.76 Million

Old National Correlation with Peers

Investors in Old National can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Old National Bancorp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Old National and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Old National is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Old National for more details

Purchase by Scott Evernham of tradable shares of Old National

Legal trades by Old National 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:
Old National insider trading alert for perchase of phantom stock by Scott Evernham, EVP CHIEF RISK OFFICER, on 16th of November 2020. This event was filed by Old National Bancorp with SEC on 2020-11-16. Statement of changes in beneficial ownership - SEC Form 4. Scott Evernham currently serves as executive vice president - old national's wealth management division of Old National Bancorp [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

Old National Bancorp maintains Sharpe Ratio (i.e. Efficiency) of -0.0366, which implies the firm had -0.0366% of return per unit of risk over the last month. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Old National Bancorp exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Old National Bancorp Semi Deviation of 2.17, risk adjusted performance of 0.0252, and Coefficient Of Variation of 5014.99 to confirm the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Over 3 percent rise for Old National. What does it mean for investors?

Old National current downside variance builds up over 5.22. Old National Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of 0.01. However, we do advice investors to further question Old National Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on Old National

Whereas some companies in the banks?regional industry are either recovering or due for a correction, Old National may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Old National 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 Old National.

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 Old National Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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