Peoples Stock Story

PEBO -  USA Stock  

USD 26.87  0.07  0.26%

It seems Peoples Bancorp may not recover as fast as we have hopped for as its price went down 2.35% today. The entity current daily volatility is 1.48 percent, with a beta of 0.97 and an alpha of 0.09 over DOW. As some institutional investors are moving away from the latest market volatility rise, we are going to outline Peoples Bancorp based on how it reacts to economic swings. I will address the reasons why this entity does not get much respect from institutional investors under the current market uncertainty.
Published over three months ago
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Will Peoples Bancorp (NASDAQ:PEBO) latest volatility rise scare institutional investors?
Peoples Bancorp currently holds roughly 158.04 M in cash with 96.21 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.66. Peoples Bancorp currently holds 316.05 M in liabilities with Debt to Equity (D/E) ratio of 6.76, indicating Peoples Bancorp may have difficulties to generate enough cash to satisfy its financial obligations.
Investing in Peoples Bancorp, 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 Peoples Bancorp 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Peoples 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 use the tools below to analyze the current value of Peoples Bancorp 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 Peoples Bancorp. Your research has to be compared to or analyzed against Peoples Bancorp's peers to derive any actionable benefits. When done correctly, Peoples Bancorp'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 Peoples Bancorp.

How important is Peoples Bancorp's Liquidity

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

How does Peoples utilize its cash?

To perform a cash flow analysis of Peoples Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Peoples Bancorp is receiving and how much cash it distributes out in a given period. The Peoples Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Peoples Bancorp Correlation with Peers

Investors in Peoples can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Peoples Bancorp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Peoples Bancorp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Peoples 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 Peoples for more details

Purchase by Skinner Frances A of tradable shares of Peoples Bancorp

Legal trades by Peoples Bancorp 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:
Peoples insider trading alert for perchase of common stock by Skinner Frances A, the corporate stakeholder, on 2nd of May 2022. This event was filed by Peoples Bancorp Inc with SEC on 2022-05-02. 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 down Peoples Bancorp Further

We consider Peoples Bancorp very steady. Peoples Bancorp maintains Sharpe Ratio (i.e., Efficiency) of 0.0861, which implies the firm had 0.0861% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Peoples Bancorp, which you can use to evaluate the future volatility of the company. Please check Peoples Bancorp Semi Deviation of 1.71, risk adjusted performance of 0.0258, and Coefficient Of Variation of 3896.32 to confirm if the risk estimate we provide is consistent with the expected return of 0.13%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on Peoples Bancorp small slide

Coefficient of variation is down to 3896.32. It may entail a possible volatility slide. Peoples Bancorp has relatively low volatility with skewness of -0.64 and kurtosis of 1.81. However, we advise all investors to independently investigate Peoples 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 Peoples Bancorp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Peoples 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.

Peoples Bancorp Implied Volatility

Peoples Bancorp's implied volatility exposes the market's sentiment of Peoples Bancorp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Peoples Bancorp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Peoples Bancorp stock will not fluctuate a lot when Peoples Bancorp's options are near their expiration.

Our Bottom Line On Peoples Bancorp

Whereas other companies in the banks—regional industry are either recovering or due for a correction, Peoples may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 25th of January 2022, we believe that at this point, Peoples Bancorp is undervalued with below average odds of financial turmoil within the next 2 years. Our overall buy-or-sell advice on the company is Strong Buy.

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

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