United Story

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As many millenniums are getting more into financial services space, we are going to concentrate on United Bankshares and CHINA MERCHANTS as potential short-term trade. We are going to examine some of the competitive aspects of both United and CHINA.
Published over a month ago
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Will United Bankshares (NASDAQ:UBSI) shadow CHINA MERCHANTS price jump?
By analyzing existing technical and fundamental indicators between United Bankshares and CHINA, 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 CHINA with a short position in United Bankshares. 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. United Bankshares has an asset utilization ratio of 5.67 percent. This implies that the company is making $0.0567 for each dollar of assets. An increasing asset utilization means that United Bankshares is more efficient with each dollar of assets it utilizes for everyday operations.

How important is United Bankshares's Liquidity

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

How United utilizes its cash?

To perform a cash flow analysis of United Bankshares, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash United Bankshares is receiving and how much cash it distributes out in a given period. The United Bankshares cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. United Bankshares Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 147.69 Million

United Bankshares exotic insider transaction detected

Legal trades by United Bankshares 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:
United insider trading alert for general transaction of stock option by Rexroad Jerry L, Executive Vice President, on 24th of November 2020. This event was filed by United Bankshares Inc with SEC on 2020-11-24. 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.

What is driving United Bankshares Investor Appetite?

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

Lets now take a look at United Bankshares revenue. Based on the latest financial disclosure, United Bankshares reported 712.58 M of revenue. This is 93.64% 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 92.45% higher than that of United Bankshares. As for CHINA MERCHANTS we see revenue of 27.58 B, which is much higher than that of the Banks?Regional

27.6 B
UBSI712.58 Million2.52
CIHKY27.58 Billion97.48

United may start a correction in November

Coefficient Of Variation just dropped to -2261.5, may hint to upcoming price decrease. United Bankshares exhibits very low volatility with skewness of -0.1 and kurtosis of 0.59. However, we advise investors to further study United Bankshares technical indicators to make sure all market info is available and is reliable.

Our Final Takeaway

While some firms under the banks?regional industry are still a bit expensive, United Bankshares may offer a potential longer-term growth to stockholders. The bottom line, as of the 25th of October 2020, we believe United Bankshares is currently fairly valued. It barely shadows the market and projects close to average probability of distress in the next two years. Our overall 30 days buy-sell recommendation on the company is 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 Vlad Skutelnik do not own shares of United Bankshares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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