Will stockholders acquire Regions Financial November?

Regions Financial, a leading player in the Banks - Regional industry, has been experiencing significant volatility in recent times. The company, with a Valuation Market Value of 14.44, has seen its stock fluctuate between a Posible Downside Price of 14.57 and a Posible Upside Price of 18.11. This volatility, coupled with a negative Daily Balance Of Power of -1.81 and a Price Action Indicator of -0.97, suggests a bearish market sentiment. However, with an Analyst Target Price Estimated Value of 20.911 and a Valuation Real Value of 18.69, there is potential for considerable upside. Despite the current volatility, the Analyst Overall Consensus is a 'Hold', with 6 Strong Buys, 2 Buys, and 10 Holds among the 17 estimates. The question for investors is whether they will seize the opportunity presented by this volatility in November. Regions Financial is projected to yield negative returns, assuming a volatility rate of 1.7715% on return distribution over a 90-day horizon. Many risk-averse shareholders are becoming overly engrossed in analyzing the banking sector, but it would be more pragmatic to focus on Regions Financial. We will evaluate whether the current expected returns justify the volatility associated with Regions Financial.
Published over six months ago
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Reviewed by Michael Smolkin

Regions Financial has reported total liabilities of $2.28 billion, with a debt to equity ratio (D/E) of 6.48. This suggests that Regions Financial may struggle to generate sufficient cash to meet its debt obligations. While debt can be beneficial for Regions Financial until it encounters difficulties in repayment, either through new capital or free cash flow, it also poses risks. If the company fails to meet its legal debt repayment obligations, shareholders could potentially lose their entire investment. Moreover, it's not uncommon for companies like Regions Financial to issue additional shares at discounted prices, which results in dilution for existing shareholders. However, in certain circumstances, debt can be a highly effective tool for Regions Financial to invest in growth opportunities that yield high returns. When evaluating Regions Financial's use of debt, it's crucial to consider it in conjunction with cash and equity.

Detailed assessment

Investors considering Regions Financial stock may find opportunity in its volatility. The stock's Mean Deviation of 1.16 indicates a high level of volatility, which could provide potential for substantial short-term gains. However, it's worth noting that the stock's Jensen Alpha, a measure of risk-adjusted performance, is at a disappointing -0.17. This suggests that the stock's returns, when adjusted for its inherent risk, are underperforming. Furthermore, the stock's Day Typical Price is at $14.4, which, combined with its volatility, may present a potential buying opportunity for investors willing to weather the storm. However, as always, investors should thoroughly research and consider their risk tolerance before making any investment decisions.
Volatility is a rate at which the price of Regions Financial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Regions Financial may increase or decrease. In other words, similar to Regions's beta indicator, it measures the risk of Regions Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Regions Financial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Regions Financial's Liquidity

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

Regions Financial Gross Profit

Regions 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 Regions 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 Regions Financial Gross Profit growth over the last 10 years. Please check Regions Financial's gross profit and other fundamental indicators for more details.

Regions Financial Volatility Drivers

Regions Financial unsystematic risk is unique to Regions Financial and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Regions Financial you can also buy Finward Bancorp. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Regions Financial important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Regions Financial income statement and balance sheet. Here are more details about Regions volatility.
-0.350.33-0.890.940.440.550.70.980.20.060.060.07-0.050.830.020.030.60.440.020.00.110.87
-0.350.610.07-0.26-0.67-0.42-0.22-0.22-0.31-0.22-0.220.82-0.18-0.06-0.040.17-0.570.190.170.170.7-0.04
0.330.61-0.480.45-0.180.110.380.450.22-0.05-0.050.69-0.260.47-0.090.14-0.040.440.140.120.440.48
-0.890.07-0.48-0.93-0.26-0.5-0.81-0.91-0.1-0.04-0.04-0.320.12-0.92-0.04-0.07-0.36-0.54-0.06-0.04-0.28-0.99
0.94-0.260.45-0.930.510.640.890.940.30.140.140.13-0.030.890.050.010.580.40.0-0.020.040.88
0.44-0.67-0.18-0.260.510.680.650.390.310.460.46-0.50.360.290.1-0.240.82-0.41-0.25-0.25-0.630.14
0.55-0.420.11-0.50.640.680.680.520.510.730.730.010.520.620.46-0.120.87-0.02-0.12-0.14-0.250.43
0.7-0.220.38-0.810.890.650.680.720.330.280.280.050.010.770.0-0.080.550.1-0.08-0.1-0.120.71
0.98-0.220.45-0.910.940.390.520.720.180.060.060.18-0.10.84-0.010.00.550.44-0.01-0.030.190.9
0.2-0.310.22-0.10.30.310.510.330.180.490.49-0.12-0.020.210.01-0.090.470.03-0.1-0.1-0.330.04
0.06-0.22-0.05-0.040.140.460.730.280.060.491.00.150.720.30.69-0.230.62-0.11-0.24-0.24-0.23-0.03
0.06-0.22-0.05-0.040.140.460.730.280.060.491.00.150.720.30.69-0.230.62-0.11-0.24-0.24-0.23-0.03
0.070.820.69-0.320.13-0.50.010.050.18-0.120.150.150.080.430.320.15-0.210.50.150.140.770.35
-0.05-0.18-0.260.12-0.030.360.520.01-0.1-0.020.720.720.080.170.910.060.46-0.050.060.06-0.24-0.17
0.83-0.060.47-0.920.890.290.620.770.840.210.30.30.430.170.340.130.450.590.120.10.240.9
0.02-0.04-0.09-0.040.050.10.460.0-0.010.010.690.690.320.910.340.090.290.330.090.09-0.040.04
0.030.170.14-0.070.01-0.24-0.12-0.080.0-0.09-0.23-0.230.150.060.130.09-0.20.321.01.00.150.09
0.6-0.57-0.04-0.360.580.820.870.550.550.470.620.62-0.210.460.450.29-0.2-0.21-0.21-0.22-0.330.27
0.440.190.44-0.540.4-0.41-0.020.10.440.03-0.11-0.110.5-0.050.590.330.32-0.210.320.30.40.62
0.020.170.14-0.060.0-0.25-0.12-0.08-0.01-0.1-0.24-0.240.150.060.120.091.0-0.210.321.00.150.09
0.00.170.12-0.04-0.02-0.25-0.14-0.1-0.03-0.1-0.24-0.240.140.060.10.091.0-0.220.31.00.150.06
0.110.70.44-0.280.04-0.63-0.25-0.120.19-0.33-0.23-0.230.77-0.240.24-0.040.15-0.330.40.150.150.35
0.87-0.040.48-0.990.880.140.430.710.90.04-0.03-0.030.35-0.170.90.040.090.270.620.090.060.35
Click cells to compare fundamentals

What is driving Regions Financial Investor Appetite?

The big decline in price over the last few months for Regions Financial created some momentum for stockholders as it was traded today as low as 13.82 and as high as 14.95 per share. The company executives failed to add value to investors and position the company supply of money to exploit market volatility in September. However, diversifying your holdings with Regions Financial or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.77. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors. Regions Financial, a prominent player in the domestic primary financial services and banking sector, is seeing significant stock volatility as we move into November. With a market capitalization of $15.46 billion and a beta of 1.22, the stock is slightly more volatile than the market.
The company's operating margin stands at 0.47%, indicating efficient operations, while its price to earnings ratio is 15.04X, reflecting a fairly valued stock. Regions Financial's debt to equity ratio is 6.48%, indicating a relatively low level of debt compared to equity. The company's book value per share is 15.96X, and the price to book ratio is 1.52X, suggesting that the market values the company at a premium to its book value. However, the probability of bankruptcy stands at 15.13%, a risk factor that investors should consider. On the positive side, the company boasts a gross profit of $6.94 billion and a net income of $2.25 billion. In conclusion, Regions Financial's stock presents an intriguing opportunity for investors in November. However, the volatility and potential bankruptcy risk necessitate careful consideration and thorough analysis before investment. .

Does Regions Financial have cash to continue?

The current coefficient of variation for Regions Financial stock is at -563.84, a figure that may raise concerns among investors. This negative coefficient of variation indicates a high level of volatility and risk associated with the stock. However, it's important to clarify that this does not necessarily mean that Regions Financial is running low on cash or is on the brink of financial distress. Investors are advised to delve deeper into the company's financials, including its cash flow statements, to determine its liquidity position and its ability to maintain operations. Regions Financial displays very low volatility with a skewness of -0.6 and a kurtosis of 0.84. However, we recommend investors to further examine Regions Financial's technical indicators to ensure that all market information is available and reliable. Understanding different market volatility trends can often assist investors in timing the market.
Proper use of volatility indicators allows traders to measure Regions Financial's stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly affect Regions Financial's stock price, adding stress to investors as they watch the value of their shares decrease. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Regions Financial stock currently holds an Analyst Overall Consensus of 'Hold', with 10 analysts maintaining a 'Hold' position, 6 issuing a 'Strong Buy', and 2 recommending a 'Buy'. The stock has a wide range of estimated target prices, with the highest being $26 and the lowest at $17, indicating a potential upside price of $18.11 from the current valuation market value of $14.44. However, the valuation real value stands at $18.69, suggesting that the stock may be undervalued. Investors should carefully consider these factors and their own risk tolerance before making a decision on investing in Regions Financial in November. .

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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 Vlad Skutelnik do not own shares of Regions Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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