Old National Story

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ONB -- USA Stock  

USD 18.57  0.44  2.43%

As many millenniums are excited about financial services space, it is only fair to go over Old National Bancorp against current market trends. As we have suggested previously, Old National is beginning its slip as investors shift to be more bearish due to the increased sector volatility. The returns on investing in Old National and the market returns of the last few months appear uncorrelated. Strong basic indicators of the company may also suggest signals of long term gains for Old National investors. Old National Bancorp is scheduled to announce its earnings today. The next earnings report is expected on the 19th of April 2021.
Published over a month ago
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Should you take over Old National (NASDAQ:ONB) based on current technical indicators?
Old National Bancorp's average rating is Hold from 6 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 Old National market sentiment investors' perception of the future value of Old National. Let us look at a few aspects of Old National technical analysis. About 71.0% of the company shares are owned by institutional investors. Old National Bancorp has price-to-book ratio of 1.01. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.73. The firm last dividend was issued on the 30th of November 2020. Old National had 105:100 split on the 3rd of January 2005.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Old National Bncp. In general, we focus on analyzing Old National stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Old National'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 Old National's intrinsic value. In addition to deriving basic predictive indicators for Old National, we also check how macroeconomic factors affect Old National 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, frequently view the market will even out over time. This tendency of Old National's stock 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 use the tools below to analyze the current value of Old National in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Old National. Your research has to be compared to or analyzed against Old National's peers to derive any actionable benefits. When done correctly, Old National's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Old National Bncp.

How does Old National Stands against Peers?

Analyzing Old National competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Old National across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Old National Competition Details

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 219.82 Million

Old National exotic insider transaction detected

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 general transaction of phantom stock by James Sandgren, PRESIDENT & COO, on 25th of February 2021. This event was filed by Old National Bancorp with SEC on 2021-02-25. Statement of changes in beneficial ownership - SEC Form 4. James Sandgren currently serves as chief banking officer and executive vp of Old National Bncp [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.

Closer look at Old National Variance

Old National Bancorp has current Variance of 6.79. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance 
 = 
SUM(RET DEV)2 
 = 
6.79
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare Old National Variance to its closest peers:
ONB
CIHHF
CIHKY
HDB
SBRCY
ONB6.793227321316941
CIHHF12.58
CIHKY6.86
HDB2.71
SBRCY6.2

Our take on Old National small slip

Sortino ratio is down to 0.14. It may suggest a possible volatility slip. Old National Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 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.

The Bottom Line

Whereas few other entities within the banks?regional industry are still a little expensive, even after the recent corrections, Old National may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to sell Old National as the risk-reward trade off is not appealing enough to hold a position. 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 Ellen Johnson 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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