Simmons Story

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It looks like HDFC Bank will continue to recover much faster as its share price surged up 1.08% today to Simmons First's 3.5585%. As many rational traders are trying to avoid financial services space, it makes sense to go over Simmons First National a little further and understand how it stands against HDFC Bank and other similar entities. We are going to analyze some of the competitive aspects of both Simmons and HDFC Bank.
Published over a month ago
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Will Simmons First (NASDAQ:SFNC) investors shift to HDFC Bank (NYSE:HDB)?
By analyzing existing basic indicators between Simmons First and HDFC Bank, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in HDFC Bank with a short position in Simmons First. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Simmons First has an asset utilization ratio of 10.99 percent. This suggests that the company is making $0.11 for each dollar of assets. An increasing asset utilization means that Simmons First National is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Simmons First's Liquidity

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

How Simmons utilizes its cash?

To perform a cash flow analysis of Simmons First, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Simmons First is receiving and how much cash it distributes out in a given period. The Simmons First cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Simmons First 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 266.35 Million

Bona fide gift to Jay Burchfield of 2616 shares of Simmons First subject to Section 16

Legal trades by Simmons First 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:
Simmons insider trading alert for gift of common stock by Jay Burchfield, the corporate stakeholder, on 29th of October 2020. This event was filed by Simmons First National Co with SEC on 2020-10-29. 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.

A Deeper look at Simmons

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Simmons First revenue. Based on the latest financial disclosure, Simmons First National reported 830.49 M of revenue. This is 92.59% lower than that of the Financial Services sector and significantly higher than that of the Banks?Regional industry. The revenue for all United States stocks is 91.2% higher than that of Simmons First. As for HDFC Bank we see revenue of 7.66 B, which is much higher than that of the Banks?Regional

HDB
7.7 B
SFNC830.49 Million9.78
Sector0.00.0
HDB7.66 Billion90.22

Another 3 percent rise for Simmons First

Coefficient of variation is down to 4054.57. It may suggest a possible volatility slip. As of the 19th of October, Simmons First has the Semi Deviation of 2.18, risk adjusted performance of 0.0304, and Coefficient Of Variation of 4054.57. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Simmons First National, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Simmons First National, which can be compared to its competition. Please validate Simmons First National treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Simmons First is priced more or less accurately, providing market reflects its prevalent price of 17.17 per share. Given that Simmons First National has jensen alpha of 0.0227, we advise you to double-check Simmons First National's current market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Simmons First

When is the right time to buy or sell Simmons First National? Buying stocks such as Simmons First isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Simmons as the current risk-reward utility is not appealing enough. 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 Simmons First.

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

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