SONA Southern stock Story

SONA -  USA Stock  

USD 15.09  0.20  1.34%

As many millenniums are trying to avoid financial services space, it makes sense to go over Southern National Bancorp a little further and try to understand its current market patterns. As expected, Southern National is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on investing in Southern National and the market returns of the last few months appear uncorrelated. The appearance of strong technical indicators of the company suggests a short-term price swing for investors of Southern. Southern National is scheduled to announce its earnings today. The next earnings report is expected on the 4th of February 2021.
Published over six months ago
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Will Southern National (NASDAQ:SONA) price continue to rise in November?
The company's average rating is Hold from 3 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Southern National market sentiment investors' perception of the future value of Southern. Let us look at a few aspects of Southern technical analysis. About 76.0% of the company shares are owned by institutional investors. Southern National has price-to-book ratio of 0.64. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity last dividend was issued on the 7th of August 2020. The firm had 11:10 split on the 30th of April 2007.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Southern National Bancorp. In general, we focus on analyzing Southern National stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Southern National's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Southern National's intrinsic value. In addition to deriving basic predictive indicators for Southern National, we also check how macroeconomic factors affect Southern National price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Southern National'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 Southern National 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 Southern National. Your research has to be compared to or analyzed against Southern National's peers to derive any actionable benefits. When done correctly, Southern National'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 Southern National Bancorp.

How does SONA Southern Stands against Peers?

Analyzing Southern National competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Southern National across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Southern National Competition Details

How SONA Southern utilizes its cash?

To perform a cash flow analysis of Southern National, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Southern National is receiving and how much cash it distributes out in a given period. The Southern National cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Southern National 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 29.66 Million

Southern National exotic insider transaction detected

Legal trades by Southern National 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:
Southern insider trading alert for general transaction of employee stock option (right to buy) by Leibson Marie Taylor, EVP Chief SBA Lending Officer, on 16th of March 2021. This event was filed by Southern National Bancorp with SEC on 2021-03-16. 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.

Closer look at Southern National Variance

Southern National Bancorp has current Variance of 4.43. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare Southern National Variance to its closest peers:

Southern technical analysis suggests possible relapse

The jensen alpha is down to 0.14 as of today. Southern National Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.14. However, we do advice investors to further question Southern National Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Southern National Investment

Whereas some firms under the banks—regional industry are still a bit expensive, Southern National may offer a potential longer-term growth to investors. All things considered, as of the 24th of October 2020, we believe that Southern National is currently fairly valued with below average probability of distress in the next two years. Our actual 30 days buy vs. sell advice on the company is Cautious Hold.

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 Raphi Shpitalnik do not own shares of Southern National Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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