Old National Story

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ONB -- USA Stock  

USD 18.61  0.28  1.48%

It looks like SBERBANK will continue to recover faster as its price went down 3.08% today to Old National's 1.16%. As many rational traders are trying to avoid financial services space, it makes sense to go over Old National Bancorp a little further and understand how it stands against SBERBANK and other similar entities. We are going to analyze some of the competitive aspects of both Old National and SBERBANK.
Published over a month ago
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Should you drop your SBERBANK (OTC:SBRCY) and Old National (NASDAQ:ONB) positions after a build up?
By analyzing existing basic indicators between Old National and SBERBANK, 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 SBERBANK with a short position in Old National. 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. Old National has an asset utilization ratio of 6.35 percent. This suggests that the company is making $0.0635 for each dollar of assets. An increasing asset utilization means that Old National Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
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 Old National or China is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Old National dividends

A dividend is the distribution of a portion of Old National earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Old National dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Old National one year expected dividend income is about $0.31 per share.
The current year Dividend Yield is expected to grow to 0.0341, whereas Preferred Dividends Income Statement Impact is forecasted to decline to about 3.5 M.
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact3.5 M3.5 M
Payment of Dividends and Other Cash Distributions-80.5 M-86.9 M
Dividend Yield 0.0322  0.0341 
Dividends per Basic Common Share 0.60  0.56 
Investing in dividend-paying stocks, such as Old National Bncp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Old National must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Old National. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Old National's Liquidity

Old National financial leverage refers to using borrowed capital as a funding source to finance Old National Bncp 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.

Correlation Between Old National and China Merchants Bank

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 Old National together with similar or unrelated positions with a negative correlation. For example, you can also add China Merchants to your portfolio. If China Merchants is not perfectly correlated to Old National 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 Old National 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 ONB and CIHKY for more information.

Payment of 4344 shares by Brendon Falconer of Old National subject to Rule 16b-3

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 payment of common stock by Brendon Falconer, SEVP-CFO, on 22nd of February 2021. This event was filed by Old National Bancorp with SEC on 2021-02-22. Statement of changes in beneficial ownership - SEC Form 4 [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

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

Let me take a closer look at Old National revenue. Based on the latest financial disclosure, Old National Bancorp reported 761.98 M of revenue. This is 93.2% lower than that of the Financial Services sector and significantly higher than that of the Banks?Regional industry. The revenue for all United States stocks is 91.92% higher than that of Old National Bancorp. As for SBERBANK we see revenue of 59.44 B, which is much higher than that of the Banks?Regional

59.4 B
ONB761.98 Million1.27
SBRCY59.44 Billion98.73

Our Old National analysis suggests possible reversion in February

Information ratio is down to 0.11. It may suggest a possible volatility slip. Old National Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.42. 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 Conclusion on Old National

Whereas some companies under the banks?regional industry are still a bit expensive, Old National may offer a potential longer-term growth to investors. On the whole, as of the 18th of January 2021, our analysis shows that Old National barely shadows the market. The company is fairly valued and projects below average chance of bankruptcy for the next 2 years. Our overall 30 days Buy-Hold-Sell recommendation on the company is Strong Buy.

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

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