Should you keep an eye on Provident Bancorp (USA Stocks:PVBC) management before January?

PVBC Stock  USD 9.37  0.18  1.88%   
Lets try to go over the odds of Provident Bancorp to fully recover from the current slip as its shares went up 1.09%. The company current daily volatility is 4.51 percent, with a beta of -0.41 and an alpha of -0.85 over Dow Jones Industrial. While some baby boomers are getting worried about thrifts & mortgage finance, it is reasonable to go over Provident Bancorp. We will look into some reasons why it is still possible for Provident Bancorp to maintain above-average margins while minimizing volatility.
Published over a month ago
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Provident Bancorp currently holds roughly 154.8 M in cash with 24.31 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 8.89, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Provident 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 Provident 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 Provident 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 Provident 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 Provident Bancorp. Your research has to be compared to or analyzed against Provident Bancorp's peers to derive any actionable benefits. When done correctly, Provident 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 Provident Bancorp.

How important is Provident Bancorp's Liquidity

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

How does Provident utilize its cash?

To perform a cash flow analysis of Provident Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Provident Bancorp is receiving and how much cash it distributes out in a given period. The Provident Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Provident Bancorp 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 21.88 Million

Provident Bancorp Correlation with Peers

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

Payment of 5787 shares by David Mansfield of Provident Bancorp subject to Rule 16b-3

Legal trades by Provident 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:
Provident insider trading alert for payment of common stock by David Mansfield, President and CEO, on 20th of December 2022. This event was filed by Provident Bancorp Inc with SEC on 2022-12-20. 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 Provident Bancorp Further

Provident Bancorp maintains Sharpe Ratio (i.e., Efficiency) of -0.2, which implies the firm had -0.2% of return per unit of risk over the last 3 months. 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. Provident Bancorp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Provident Bancorp risk adjusted performance of (0.26), and Coefficient Of Variation of (500.11) to confirm the risk estimate we provide.
ZURVY
ACGL
EEM
UBS
SAN
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0.790.870.90.87
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ACGL
0.790.730.840.91
ACGL
EEM
0.870.730.840.8
EEM
UBS
0.90.840.840.86
UBS
SAN
0.870.910.80.86
SAN
ZURVY
ACGL
EEM
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SAN
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Provident pull back in January 2023?

Provident Bancorp current maximum drawdown builds up over 26.09.
As of the 26th of December, Provident Bancorp holds the coefficient of variation of (500.11), and Risk Adjusted Performance of (0.26). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Provident Bancorp, 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 have analyzed nineteen technical drivers for Provident Bancorp, which can be compared to its competitors. Please check Provident Bancorp treynor ratio, as well as the relationship between the potential upside and expected short fall to decide if Provident Bancorp is priced some-what accurately, providing market reflects its current price of 7.39 per share. Given that Provident Bancorp has jensen alpha of (0.85), we recommend you to check out Provident Bancorp's recent market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Provident Bancorp

Whereas some other companies within the banks—regional industry are still a little expensive, even after the recent corrections, Provident Bancorp may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Provident valuation and our trade advice on Provident Bancorp is due to the recent market swings and your selection of investing horizon. 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 Provident Bancorp.

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 Aina Ster do not own shares of Provident Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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