We consider B of A very steady.
Bank Of America secures Sharpe Ratio (or Efficiency) of 0.039, which signifies that the company had 0.039% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Bank Of America, which you can use to evaluate the future volatility of the firm. Please confirm Bank Of America Risk Adjusted Performance of 0.008,
downside deviation of 1.71, and Mean Deviation of 1.16 to double-check if the risk estimate we provide is consistent with the expected return of 0.0563%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Vanguard income statement, its balance sheet, and the statement of cash flows. Potential Vanguard investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Vanguard investors may use each financial statement separately, they are all related. The changes in Vanguard's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Vanguard's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Vanguard
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Vanguard performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Vanguard shares is the value that is considered the true value of the share. If
the intrinsic value of Vanguard is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Vanguard. Please read more on our
fundamental analysis page.
And What about dividends?
A dividend is the distribution of a portion of Vanguard earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Vanguard dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Vanguard one year expected dividend income is about USD1.13 per share.
Investing in stocks that pay
dividends, such as mutual fund of Vanguard Sp 500, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Vanguard must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Vanguard. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Instrument Allocation
The asset allocation of funds such as Vanguard usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Vanguard Sp 500
DetailsAnother angle On Vanguard
There are few distinct groups of B of A stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of B of A is distributed among investors.
Ownership Allocation
B of A holds a total of eight billion five hundred seventy million
outstanding shares. The majority of Bank Of America
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Bank Of America to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in B of A. Please pay attention to any change in the institutional holdings of Bank Of America as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors26.71% | | Institutions73.17% |
| Retail Investors | 26.71 |
| Insiders | 0.12 |
| Institutions | 73.17 |
Will B of A continue to rise?
Potential upside is down to 2.14. It may suggest a possible volatility slip. Bank Of America has relatively low volatility with skewness of -0.45 and kurtosis of 0.3. However, we advise all investors to independently investigate Bank Of America to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure B of A's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact B of A's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on B of A Investment
Whereas many other companies under the banks—diversified industry are still a bit expensive, B of A may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to exit some or all of your B of A holdings as it seems the potential growth was already fully factored into the current price. 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 B of A.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Vanguard Sp 500. Please refer to our
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