The entity has a beta of 1.4613. Let's try to break down what Pinnacle's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Pinnacle Finl will likely underperform. The beta indicator helps investors understand whether Pinnacle Finl moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Pinnacle deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Pinnacle Financial. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Pinnacle Financial
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Pinnacle Financial'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 note, it is not enough to conduct a financial or market analysis of a single entity such as Pinnacle Financial. Your research has to be compared to or analyzed against Pinnacle Financial's peers to derive any actionable benefits. When done correctly, Pinnacle Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Pinnacle Financial.
How important is Pinnacle Financial's Liquidity
Pinnacle Financial
financial leverage refers to using borrowed capital as a funding source to finance Pinnacle Financial Partners ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pinnacle Financial 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. Financial leverage can amplify the potential profits to Pinnacle Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Pinnacle Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Pinnacle Financial's total debt and its cash.
Pinnacle Financial Gross Profit
Pinnacle Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Pinnacle Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Pinnacle Financial Gross Profit growth over the last 10 years. Please check Pinnacle Financial's
gross profit and other
fundamental indicators for more details.
What is driving Pinnacle Financial Investor Appetite?
The modest gains experienced by current holders of Pinnacle Finl may encourage insiders to take a closer look at the company as it is trading at a share price of
110.41 on
435,906 in trading volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in
December. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.03. The current volatility is consistent with the ongoing market swings in
December 2021 as well as with Pinnacle Finl unsystematic, company-specific events.
Returns Breakdown
| Return on Assets | 0.91 |
| Return on Equity | 6.18 |
| Return Capital | 0.0175 |
| Return on Sales | 0.43 |
Momentum Analysis of Pinnacle Finl suggests possible reversal in February
The value at risk is down to -3.5 as of today.
As of the 17th of January 2022, Pinnacle Finl holds the Semi Deviation of 1.99,
risk adjusted performance of 0.0649, and Coefficient Of Variation of 1375.92. Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Pinnacle Finl, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Pinnacle Finl Ptnrs, which can be compared to its competitors. Please check
Pinnacle Finl Ptnrs standard deviation,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
expected short fall to decide if Pinnacle Finl Ptnrs is priced some-what accurately, providing market reflects its current price of 110.41 per share. Given that Pinnacle Finl has
jensen alpha of 0.0498, we recommend you to check out Pinnacle Finl Ptnrs's recent market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Pinnacle Finl
Although many other companies under the banks—regional industry are still a bit expensive, Pinnacle Finl may offer a potential longer-term growth to insiders. To conclude, as of the 17th of January 2022, our analysis shows that Pinnacle Finl responds to the market. The firm is
fairly valued and projects
below average probability of distress for the next 2 years. Our concluding 90 days buy-or-sell advice on the firm is
Buy.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of Pinnacle Financial Partners. Please refer to our
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