Wintrust Story

WTFC -- USA Stock

USD 76.44 2.78 3.77%

Macroaxis Story

In this post I will go over Wintrust Financial. I will address the reasons why this entity was insulated from the current market uncertainty. What is Wintrust Financial Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of Wintrust Financial to move above current price in 30 days from now is about 27.19%. The Wintrust Financial Corporation probability density function shows the probability of Wintrust Financial Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, Wintrust Financial Corporation has beta of -0.041 . This means as returns on benchmark increase, returns on holding Wintrust Financial are expected to decrease at a much smaller rate. During bear market, however, Wintrust Financial Corporation is likely to outperform the market. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Wintrust Financial is significantly underperforming S&P 500.

Published over a year ago

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Analysis of WTFC Wintrust Financial Corporation

Wintrust Financial has performance score of 1 on a scale of 0 to 100. The firm maintains market beta of -0.041 which attests that as returns on market increase, returns on owning Wintrust Financial are expected to decrease at a much smaller rate. During bear market, Wintrust Financial is likely to outperform the market. Although it is extremely important to respect Wintrust Financial historical price patterns, it is better to be realistic regarding the information on equity current price history. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By examining Wintrust Financial technical indicators you can presently evaluate if the expected return of 0.0479% will be sustainable into the future. Wintrust Financial right now maintains a risk of 1.9657%. Please check out Wintrust Financial Variance, Maximum Drawdown as well as the relationship between Maximum Drawdown and Semi Variance to decide if Wintrust Financial will be following its historical returns.

What is the right price you would pay to acquire a share of Wintrust Finl? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

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What is happening with Wintrust Finl Corp this year

Annual and quarterly reports issued by Wintrust Finl Corp are formal financial statements that are published yearly and quarterly and sent to Wintrust stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Wintrust Finl often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Wintrust utilizes its cash?

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

Wintrust Finl 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 239.39 Million

Wintrust Finl exotic insider transaction detected

Legal trades by Wintrust Finl 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:

Wintrust insider trading alert for general transaction of depositary shares of series e preferred stock by Edward Wehmer, FOUNDER AND CEO, on 1st of March 2021. This event was filed by Wintrust Financial Corp with SEC on 2021-03-01. Statement of changes in beneficial ownership - SEC Form 4. Edward Wehmer currently serves as ceo and president director and member of executive committee of Wintrust Finl Corp [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 Perspective

Wintrust Financial currently holds 1.61B in liabilities with Debt to Equity (D/E) ratio of 8.74 indicating the stock may have difficulties to generate enough cash to satisfy its financial obligations. The current investor indifference towards the small price fluctuations of Wintrust Financial may raise some interest from investors as it closed today at a share price of 73.08 on 213196.000 in trading volume. The company executives did not add any value to Wintrust Financial Corporation investors in April. However, most investors can still diversify their portfolios with Wintrust Financial to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.9657. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Wintrust Financial makes 1.61b total debt. Wintrust Financial is selling for under 74.62. That is 3.29 percent up. Day Low was 73.08. Wintrust Financial Share Based Compensation is somewhat stable at the moment.

Revenue Per Employee	Net Income Per Employee
2013	0.00	0.00
2014	0.00	0.00
2015	0.00	0.00
2018	0.00	0.00
2019 (projected)	0.00	0.00

Revenue Per Employee Net Income Per Employee

To conclude, our concluding buy-sell advice on the company is Cautious Hold. Wintrust Financial is currently overvalued with below average chance of distress for the next two years.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. 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 Ellen Johnson do not own shares of Wintrust Finl Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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