Financial stock – Purple Ribbon Project http://purpleribbonproject.com/ Thu, 12 May 2022 14:11:52 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://purpleribbonproject.com/wp-content/uploads/2021/10/icon-12.png Financial stock – Purple Ribbon Project http://purpleribbonproject.com/ 32 32 Fairfax Financial Stock: Still Produces Attractive Yields https://purpleribbonproject.com/fairfax-financial-stock-still-produces-attractive-yields/ Wed, 27 Apr 2022 00:38:00 +0000 https://purpleribbonproject.com/fairfax-financial-stock-still-produces-attractive-yields/ This article was written by To follow Unique stock ideas taken from fund letters published by Seeking Alpha. Additional disclosure: The following description of Alphyn Capital Management, LLC’s approach and the targeted characteristics of its strategies and investments is based on current expectations and should not be considered definitive or a guarantee that the approaches, […]]]>

This article was written by

Unique stock ideas taken from fund letters published by Seeking Alpha.

Additional disclosure: The following description of Alphyn Capital Management, LLC’s approach and the targeted characteristics of its strategies and investments is based on current expectations and should not be considered definitive or a guarantee that the approaches, strategies and portfolio investment will, in fact, possess these characteristics.

Reference or comparison to an index does not imply that the portfolio will be constructed in the same way as the index or that it will achieve returns, volatility or other results similar to the index. Unlike the indices, the model portfolio will be actively managed and may include far fewer different securities than those comprising each index. Results of the model portfolio compared to the performance of the Standard & Poor’s 500 Index (the “S&P 500”) for informational purposes only. The S&P 500 is an unmanaged, market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. The investment program does not reflect this index and the volatility may differ significantly from the volatility of the S&P 500.

The performance results of the master portfolio are presented for informational purposes only and reflect the impact that important economic and market factors have had on the manager’s decision-making process. No representation is made that any investor or portfolio will realize or is likely to realize profits or losses similar to those shown.

Results are net of all standard fees calculated at the highest billed rate, expenses and estimated incentive award. Model portfolio returns include reinvestment of dividends and other income, including new issue income. Yield is based on annual returns since inception and does not take into account high water, if any. Returns may vary for investors who are not permitted to participate in new issues.

Hypothetical performance results are unaudited and do not reflect actual results of accounts managed by Alphyn Capital Management, LLC. Hypothetical performance results are provided for illustrative purposes only and are not necessarily indicative of the performance that would have actually been achieved had an investment used the Strategy during the relevant periods, and such simulations are not necessarily indicative of future performance of the strategy. Limitations inherent in hypothetical performance may include: 1) hypothetical results are generally prepared with hindsight; 2) the hypothetical results do not represent the impact that important economic and market factors could have on an investment advisor’s decision-making process if the advisor was actually managing clients’ money; 3) there are many factors relating to the markets in general, many of which cannot be fully taken into account in preparing hypothetical performance results and all of which may adversely affect actual investment results.

There can be no assurance that any of the securities referred to herein will remain in an account’s portfolio at the time you receive this report or that the securities sold have not been redeemed. The securities discussed do not represent the entire portfolio of an account and, in the aggregate, may represent only a small percentage of an account’s portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed have been or will prove profitable or that any investment recommendations or decisions we make in the future will be profitable or match the investment performance of the titles discussed here.

Graphs, tables and other visual aids are provided for informational purposes only. None of these graphs, charts or visual aids can be used by themselves to make investment decisions. No representation is made that these will assist anyone in making investment decisions and no chart, table or other visual aid can capture all of the factors and variables necessary in making such decisions.

This report is provided for informational purposes only and should not be construed as investment advice. This is not a recommendation or an offer to sell or a solicitation of an offer to buy any particular security, strategy or investment product. Our research for this report is based on current public information which we believe to be reliable, but we do not represent that the research or report is accurate or complete, and should not be relied upon as such. Our views and opinions expressed in this report are current as of the date of this report and are subject to change. Any reproduction or other distribution of this material in whole or in part without the prior written consent of Alphyn Capital Management, LLC is prohibited.

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Tuesday’s Insider Report: Director invests over $300,000 in this financial stock that’s up 55% in the past year https://purpleribbonproject.com/tuesdays-insider-report-director-invests-over-300000-in-this-financial-stock-thats-up-55-in-the-past-year/ Tue, 26 Apr 2022 09:19:23 +0000 https://purpleribbonproject.com/tuesdays-insider-report-director-invests-over-300000-in-this-financial-stock-thats-up-55-in-the-past-year/ Listed below are companies that have recently been the subject of insider trading in the public market through their direct and indirect holdings, including accounts over which they have control or direction. The list presents insider trading activities; it does not convey total ownership information because an insider may hold many accounts. Keep in mind […]]]>

Listed below are companies that have recently been the subject of insider trading in the public market through their direct and indirect holdings, including accounts over which they have control or direction.

The list presents insider trading activities; it does not convey total ownership information because an insider may hold many accounts.

Keep in mind that when looking at insider trading activity, buying activity may reflect a security’s perceived value. Selling activity may or may not be related to the valuation of a stock; perhaps an insider needs to raise funds for personal reasons. An insider’s total holdings should be considered because a sale may, in context, be insignificant if that person has a significant remaining position in the company. I tend to place a premium on insider trading when I see multiple insiders trading in a company’s stock or shares.

Listed is a stock that has had insider-reported buy activity in the public market.

Crown Capital Partners Inc. (CRWN-T)

On April 14, John Brussa, who sits on the board, invested $320,000 in Crown stock. He acquired 40,000 shares at a cost per share of $8, increasing the position of this particular account (RRSP) to 60,000 shares.

The stock price has finally returned to pre-COVID levels, rebounding 55% in the past year.

According to Refinitiv, the company is covered by an analyst, Trevor Reynolds of Acumen Capital, who has a target price of $8, implying that the stock is almost fully priced.

**

Below are three stocks that have had recent selling activity in the public market reported by insiders.

First Majestic Silver Corp. (FR-T)

Between April 14 and April 18, Karen Liu, Vice President – ​​Treasury, exercised her options, receiving 10,000 shares at a cost per share of $8.18, and sold 10,000 shares at a price per share of $18, thereby eliminating his position from that specific account. Net proceeds totaled over $98,000, not including associated transaction fees.

SilverCrest Metals Inc. (SILT)

On April 18, Board Chairman Graham Thody sold 60,000 shares at a price of $12.23 per share, reducing the holdings of this specific account to 158,571 shares. Proceeds from the sale totaled over $733,000, not including commission fees.

Westshore Terminals Investment Corp. (WTE-T)

On April 13, Vice Chairman and General Manager Glenn Dudar sold 4,500 shares at an average price per share of about $35.57, leaving 13,500 shares in that particular account. Proceeds from the sale exceeded $160,000, excluding trading fees.

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SVB Financial stock climbs as first quarter earnings beat on strong credit quality (NASDAQ:SIVB) https://purpleribbonproject.com/svb-financial-stock-climbs-as-first-quarter-earnings-beat-on-strong-credit-quality-nasdaqsivb/ Thu, 21 Apr 2022 20:48:00 +0000 https://purpleribbonproject.com/svb-financial-stock-climbs-as-first-quarter-earnings-beat-on-strong-credit-quality-nasdaqsivb/ Various photographs/iStock Editorial via Getty Images SVB Financial (NASDAQ: SIVB) stocks almost climb 5% in the trade after office hours Next Thursday stronger than expected Q1 resultsas “credit quality was impeccable and client activity remained robust,” said Greg Becker, President and CEO. First quarter EPS of $7.92 topped analysts’ average estimate of $5.58 and compared […]]]>

Various photographs/iStock Editorial via Getty Images

SVB Financial (NASDAQ: SIVB) stocks almost climb 5% in the trade after office hours Next Thursday stronger than expected Q1 resultsas “credit quality was impeccable and client activity remained robust,” said Greg Becker, President and CEO.

First quarter EPS of $7.92 topped analysts’ average estimate of $5.58 and compared to $6.22 in the fourth quarter of 2021, although down from $10.03 in the first quarter of Last year.

First-quarter net interest income of $1.08 billion increased from $939 million in the fourth quarter of 2021 and $660 million a year ago. The net interest margin was 2.13% in the first quarter, compared to 1.91% in the previous quarter, but down from 2.29% in the first quarter of 2021.

Noninterest revenue of $517 million in the first quarter, compared to $561 million in the fourth quarter of 2021 and $744 million in the first quarter of 2021.

Average loans of $67.07 billion in the first quarter increased from $62.57 billion in the fourth quarter of 2021 and $46.28 billion in the first quarter a year ago. Average deposits were $190.72 billion in Q1 compared to $183.1 billion in Q4 2021 and $110.61 billion in Q1 2021.

Average customer investment funds of $206.14 billion decreased slightly from $207.6 billion in the prior quarter, but up from $151.6 billion in the first quarter of 2021.

Provision for credit losses as a percentage of total loans of 0.61% in Q1 compared to 0.64% in Q4 2021 and 0.82% in Q1 2021.

The operating efficiency ratio in the first quarter was 54.60% compared to 60.13% in the fourth quarter of last year and 45.31% in the quarter of the previous year.

In mid-March, Jefferies expected SVB Financial to see rapid growth in core net interest income.

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Checking Ally Financial shares after last week’s earnings https://purpleribbonproject.com/checking-ally-financial-shares-after-last-weeks-earnings/ Thu, 21 Apr 2022 15:10:52 +0000 https://purpleribbonproject.com/checking-ally-financial-shares-after-last-weeks-earnings/ Is ALLY’s dividend yield worth the risk? Ally Financial Inc. (NYSE:ALLY) declared a quarterly cash dividend of $0.30 per common share of the financial company on April 13, payable May 16 to shareholders of record as of May 2. ALLY offers a dividend yield of 2.68% with a forward dividend of $1.20. The company also […]]]>

Is ALLY’s dividend yield worth the risk?

Ally Financial Inc. (NYSE:ALLY) declared a quarterly cash dividend of $0.30 per common share of the financial company on April 13, payable May 16 to shareholders of record as of May 2. ALLY offers a dividend yield of 2.68% with a forward dividend of $1.20.

The company also shared a beaten first-quarter profit and revenue just a day later, though analysts weren’t responding kindly as ALLY also shared lower earnings. Since that report late last week, five analysts have stepped in with price target cuts. The most recent came from BofA Global Research, which lowered its price target to $52 from $62. The 12-month consensus price target of $59.26 still represents a hefty 33.7% premium to current levels.

ALY has been declining for most of the year, losing 8.5% over this period. However, the stock recently moved back above the 30-day moving average, which pushed it lower for most of the month. Additionally, Ally shares trade at a low forward price-to-earnings ratio of 5.54 but a relatively high price-to-sell ratio of 1.83.

From a fundamental standpoint, the Ally stock offers very little consistency and stability. Ally Financial holds $5.06 billion in cash and $17.27 billion in total debt on its balance sheet. ALLY is also expected to deliver limited growth for fiscal 2023, with expected earnings growth of 0.9% and expected revenue growth of 4.7%, making the stock ideal for long-term investors. despite a decent dividend yield.

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Are PNC Financial shares in your portfolio? https://purpleribbonproject.com/are-pnc-financial-shares-in-your-portfolio/ Wed, 20 Apr 2022 10:03:00 +0000 https://purpleribbonproject.com/are-pnc-financial-shares-in-your-portfolio/ Financial services institution PNC Financial (NYSE:) The stock is back to oversold levels. The company beat analyst estimates with revenue in line during its fiscal 2022 first quarter. Its commercial loans grew at the fastest organic rate since defensive drawdowns began during the pandemic. Interest rates rose due to negative effects in some financial markets. […]]]>

Financial services institution PNC Financial (NYSE:) The stock is back to oversold levels. The company beat analyst estimates with revenue in line during its fiscal 2022 first quarter.

Its commercial loans grew at the fastest organic rate since defensive drawdowns began during the pandemic. Interest rates rose due to negative effects in some financial markets.

The in nearly four decades has prompted the to forecast seven rate hikes this year. Banks are the main beneficiaries of rising interest rates as demand for loans increases.

The Company is well positioned to benefit from rising interest rates through net interest income growth and net interest margin (NIM) expansion.

The company is poised to reap the rewards of its previous acquisition of BBVA (BME:) as it sees 50% sales increases at its branches. Cautious investors looking for exposure to a performing bank can watch for opportunistic pullbacks in PNC Financial shares.

Publication of results for the first quarter of fiscal year 2022

On April 14, 2022, PNC Financial released its fiscal first quarter 2022 results for the quarter ending March 2022. The company reported earnings per share (EPS) of $3.29 compared to analysts’ consensus estimate of 2 $.78, a beat of $0.51.

Revenue rose 11.2% year-over-year (YoY) to $4.69 billion, beating analyst estimates of $4.72 billion. Net loan write-offs were $137 million or 0.19% of annualized average loans.

Net interest margin improved sequentially to 2.28% from 2.27% in the prior Q4 2021. Average loans increased 1% year-on-year to $290.7 billion. Average commercial loans increased by $1.8 billion.

Average consumer loans of $95.1 billion remained flat. Net loan write-offs increased by $13 million to $137 million. The Basel III Common Equity Tier 1 capital ratio was 9.9% as of March 31, 2022 and 10.3% as of December 31, 2022. The company increased its quarterly dividend by 20% to $1.50 per April 1, 2022.

Takeaways from the conference call

PNC Financial CEO Bill Demchak gave an upbeat account of the bank starting the year off to a strong start as it increased lending and securities and controlled spending while maintaining credit quality by maintaining reserves and strong capital levels.

Fees fell more than expected as the Russian-Ukrainian conflict hurt some capital markets. He looks forward to the increased benefits of rising interest rates as loan demand grows.

Sales per branch increased 60% in March 2022 compared to December 2021, thanks to improvements in mortgages, cards and investment products. Cash commercial lending was up $6 billion in the quarter and $7 billion excluding the impact of the PPP loan write-off and its increase in April.

He dwelt on share buybacks in the rising rate environment,

“We also remain active on the security side with net purchases of nearly $6 billion in the quarter. From a balance sheet perspective, stocks were offset by unrealized losses due to rising interest rates, which Rob will discuss in a few minutes.

“This does not impact our regulatory capital or earnings, but during the quarter we moved approximately $20 billion of our available-for-sale securities to help maturity limit future valuation changes. due to movements in interest rates.

“Importantly, we have seen a strong rebound in the performance of our securities. Overall, we believe we are well positioned to weather rising interest rates to generate net income growth. of interest and an expansion of the NIM throughout the year.”

Financial Stock Chart” src=”https://d1-invdn-com.investing.com/content/piccb86e2aebd9ed0520e10ee812de8cc85.png” alt=”PNC Financial Stock Chart”/>

PNC Financial Stock Chart

PNC Opportunistic Withdrawal Levels

Using rifle charts on the weekly and daily time frames provides an accurate view of the price action playing field for PNC stocks. The weekly carbine chart has formed an inverse puppy distribution through the $176.61 Fibonacci (fib) level and the lower weekly Bollinger® (BB) bands lie near the $169.78 fib.

The weekly 5-period moving average (MA) resistance drops to $186.06 with a 50-period MA at $196.13 and a 15-period MA at $198.26. The 200-period weekly moving average support stands at $149.26.

The weekly stochastic has formed a mini inverse staircase pup falling through the 20 band. The weekly buy of the market structure low (MSL) triggers on a break above $195.00.

The daily Rifles chart formed an inverse puppy breakdown, with the 5-period MA falling to $180.37, followed by the 15-period MA at $184.73 and the daily BB lowers at $169.50.

The daily 50-period MA resistance lies at $193.13 and the 200-period MA resistance at $197.29. The daily buy of MSL is triggered on a break above the $184.66 price level. The daily stochastic failed the 20-band reel and reversed to fall back below the 20-band on a mini stochastic reverse pup.

Cautious investors can watch for opportunistic pullbacks at the $171.12, $167.63, $158.64, $153.72, $151.62 and $146.06 levels. The upward trajectories range from the $193.03 fib level to the $226.25 fib level.

Original post

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Citizens Financial’s stock gains after Q1 earnings overshoot highlight net interest (NYSE:CFG) https://purpleribbonproject.com/citizens-financials-stock-gains-after-q1-earnings-overshoot-highlight-net-interest-nysecfg/ Tue, 19 Apr 2022 07:00:00 +0000 https://purpleribbonproject.com/citizens-financials-stock-gains-after-q1-earnings-overshoot-highlight-net-interest-nysecfg/ georgeclerk/E+ via Getty Images Citizen Financial (NYSE: CFG) stocks jump 8.2% out of doors Tuesday after happy new year 2022 for the regional bank outlook and better than expected Q1 results. See net interest income of $5.7 billion to $5.9 billion in 2022, compared to $4.51 billion in 2021, reflecting higher interest rates. Expects average […]]]>

georgeclerk/E+ via Getty Images

Citizen Financial (NYSE: CFG) stocks jump 8.2% out of doors Tuesday after happy new year 2022 for the regional bank outlook and better than expected Q1 results.

See net interest income of $5.7 billion to $5.9 billion in 2022, compared to $4.51 billion in 2021, reflecting higher interest rates.

Expects average loans to grow 20% to 22% next year, from $123.6 billion in 2021.

Anticipates non-interest revenue of $2.2-2.3 billion in 2022 versus $2.13 billion the previous year.

Meanwhile, first-quarter net interest income of $1.14 billion fell from $1.12 billion in the fourth quarter of 2021 and $1.11 billion in the first quarter of 2021.

Average loans and leases in the first quarter were $129.2 million, up from $125.2 million in the fourth quarter of 2021 and $122.8 million in the first quarter of 2021. Average deposits of 155 .1 million also increased from $153.0 million in the fourth quarter of 2021 and $146.6 million in the first quarter of 2021.

Return on tangible equity of 11.4% in Q1 compared to 13.6% in Q4 2021 and 17.2% in Q1 2021.

Still, Q1 Adjusted EPS of $1.07 topped consensus of $0.91, but fell from $1.26 in Q4 2021 and $1.41 in Q1 2021.

Underlying profit before provision of $587 million in the first quarter also fell from $710 million in the fourth quarter of 2021 and from $661 million in the first quarter of 2021.

The tangible book value of $30.97 per share decreased from $34.61 in Q4 2021 and $32.79 in Q1 2021.

Conference call at 9:00 a.m. ET.

On April 11, Citi downgraded Citizens Financial to Neutral.

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Is Hartford Financial’s stock price fair? https://purpleribbonproject.com/is-hartford-financials-stock-price-fair/ Mon, 11 Apr 2022 10:30:08 +0000 https://purpleribbonproject.com/is-hartford-financials-stock-price-fair/ BRAZIL – 2020/06/08: In this photo illustration the Hartford Financial Services Group logo is seen … [+] displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Hartford Financial (NYSE: HIG) stock has gained about 5% year-to-date compared to the S&P500 index’s 5% decline over the same […]]]>

Hartford Financial (NYSE: HIG) stock has gained about 5% year-to-date compared to the S&P500 index’s 5% decline over the same period. Additionally, at its current price of $72 per share, it has 15% upside potential from its fair value of $83 – Trefis’ estimate for Hartford Financial Rating. The P&C insurance giant (P&C) recently released its fourth quarter results, beating consensus estimates for revenue and profit. It reported total revenue of $5.8 billion, 9% higher than in the fourth quarter of 2020. This was due to an increase in net realized investment gains from $102 million to $212 million , followed by 7% year-on-year growth in total premiums. Premiums mainly benefited from a 12% year-over-year increase in the commercial P&C segment. Overall, adjusted net income increased 36% year-over-year to $724 million, driving quarterly EPS of $2.10. The improvement in profitability figures is due to a reduction in total profit and expenses as a % of revenue from 87.8% to 84.5%.

Total company revenue increased 9% year-on-year to $22.4 billion in 2021. This was primarily driven by 5% growth in premiums and other considerations, coupled with an increase in 25% of net investment income. Premiums and other considerations benefited from a 7% rise in the commercial P&C segment, followed by 3% growth in group benefits and a 20% jump in the Hartford fund divisions . Notably, Hartford fund growth was driven by higher assets under management (AuM) – up 13% year-on-year to $157.9 billion. Overall, revenue growth coupled with lower total benefits and expenses – down 90% to 87%, resulted in a 37% increase in adjusted net income to $2.3 billion. dollars.

Insurance companies invest premiums in fixed income securities and other means to generate additional income, which is very important for their profitability. While investment returns have fallen due to the Covid-19 crisis, we expect improving interest rates to boost returns. In addition, premium and commission income is expected to increase as the economy recovers. Globally, Hartford Financial Revenue are expected to remain around $22.5 billion in fiscal 2022. Additionally, HIG’s adjusted net income margin is expected to hover around 2021 levels, resulting in adjusted net income of 2.4 billion and an annual EPS of $7.07. This, coupled with a P/E multiple just below 12x, will lead to a valuation of $83.

Here you will find our previous coverage of Hartford Financial stocks, where you can follow our view over time.

What if you were looking for a more balanced portfolio instead? Our quality portfolio and multi-strategy portfolio have consistently beaten the market since late 2016.

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Axos Financial shares slide to 52-week low after report on atypical loans (NYSE:AX) https://purpleribbonproject.com/axos-financial-shares-slide-to-52-week-low-after-report-on-atypical-loans-nyseax/ Thu, 07 Apr 2022 17:19:00 +0000 https://purpleribbonproject.com/axos-financial-shares-slide-to-52-week-low-after-report-on-atypical-loans-nyseax/ Thomas De Wever/iStock Editorial via Getty Images Axos Financial (NYSE:AXIS) the stock fell to a new 52-week low after BNC News reported that the online bank has a history of making atypical loans and that last month it was sued by a former employee who alleged that the company intentionally understaffed its compliance department. The […]]]>

Thomas De Wever/iStock Editorial via Getty Images

Axos Financial (NYSE:AXIS) the stock fell to a new 52-week low after BNC News reported that the online bank has a history of making atypical loans and that last month it was sued by a former employee who alleged that the company intentionally understaffed its compliance department. The Axos share is down 0.7% in the early afternoon of Thursday, and slipped as low as $40.90 earlier in the session.

A spokesperson for Axos (AX) told NBC that the bank disputes Jennifer Brear Brinker’s allegations “and her perception of the underlying factual circumstances.”

Later this month, the company is expected to face a former internal auditor in a wrongful termination case in federal court in California, NBC said. Charles Matthew Erhart alleged that Axos (AX) failed to notify regulators of subprime loans made to questionable borrowers and failed to disclose to regulators that it had received grand jury and other subpoenas , among other allegations. The bank’s spokesperson told NBC that all allegations have been investigated. “None of the investigations or audits found any basis for Erhart’s allegations,” he said.

According to the report, the bank specialized in lending to foreign nationals and offered cash recovery loans, which allow borrowers who paid cash for a property to immediately withdraw money from the investment.

One of the company’s recent loans, made in mid-February, refinanced a $100 million mortgage on Trump Tower due in September, NBC said, citing a New York City Department of Finance document. York. The loan was granted days after the auditor resigned from the Trump Organization, according to the report.

Last October, B. Riley downgraded Axos (AX) to Neutral from Buy, citing the stock’s premium valuation and limited upside potential to estimates.

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Norwood Financial stock: 4% yield with a payout ratio below 40% (NASDAQ:NWFL) https://purpleribbonproject.com/norwood-financial-stock-4-yield-with-a-payout-ratio-below-40-nasdaqnwfl/ Wed, 06 Apr 2022 13:35:00 +0000 https://purpleribbonproject.com/norwood-financial-stock-4-yield-with-a-payout-ratio-below-40-nasdaqnwfl/ Gwengoat/E+ via Getty Images Introduction It has been about 16 months since I last consulted Norwood Financial (NASDAQ: NWFL) but although I was charmed by the bank’s performance in January 2021, the bank’s share price barely budged despite posting strong results in 2021 and the strengthening of the balance sheet. This may be an opportunity, […]]]>

Gwengoat/E+ via Getty Images

Introduction

It has been about 16 months since I last consulted Norwood Financial (NASDAQ: NWFL) but although I was charmed by the bank’s performance in January 2021, the bank’s share price barely budged despite posting strong results in 2021 and the strengthening of the balance sheet. This may be an opportunity, but I wanted to take a closer look at the bank’s assets first. Norwood Financial is the name of the holding company of Wayne Bank.

NWFL stock
Data by YCharts

Strong result in 2021 thanks to low loan loss provisions

Norwood Financial is active in both Pennsylvania and New York, and in my previous article I noticed that the loan portfolio was quite heavy in real estate, so one could consider a long position in this bank as a bet on the real estate situation in these two states. The value of real estate does not have to increase, as long as borrowers are able to make their payments, the performance of Norwood’s loan portfolio should be good.

In 2021, the bank enjoyed higher interest income combined with lower interest expense and the combination of the two drove net interest income up by around 30% to over $65 million. dollars.

Norwood Statement of Financial Performance

Norwood Financial Investor Relations

This is a good result, as higher net interest income will help mitigate the impact of higher net non-interest expense during the year, which rose from less than 27 million to over $30 million. Provision for losses before loans and income before taxes were approximately $35 million. Unlike other banks that have been able to recover a substantial portion of the loan loss provisions they have recorded, Norwood has kept its loan loss provisions fairly high at $4.2 million, which is a bit more 20% lower than the level recorded in 2020. This level of loan loss provision rather high is why I wanted to take a closer look at the loan book and the status of loans and I will discuss it in a separate section of This article.

After taking into account the provision for loan losses, net income was approximately $24.9 million, resulting in EPS of $3.05, indicating that the bank’s shares are currently trading at less than 10 times the profits, knowing that these profits have not been inflated by taking over part of the historical provisions.

Norwood recently increased its dividend to $0.28 per quarter and the annualized dividend of $1.12 represents a dividend yield of approximately 4%. The payout ratio is just under 40%, so the dividend is well covered.

The loan portfolio is still very heavy in real estate

As loan loss provisions remained rather high, I wanted to take a closer look at Norwood’s loan portfolio. There may be no cause for alarm as the provisions in 2020 were relatively low and it would make sense for Norwood to try to soften the blow by spreading the provisions over several years, but I still wanted to dig a little deeper that.

The balance sheet contains a total of $2.07 billion in assets and as you can see in the image below, approximately $207 million is held in cash and cash equivalents with an additional $407 million in securities the majority of which should be as good as cash. .

Norwood Financial Assets

Norwood Financial Investor Relations

The total size of the loan portfolio was $1.34 billion, which is actually a decrease of about 4% from the previous year. And that’s an interesting first thing: the size of the balance sheet has grown by over $200 million, but the size of the loan book has shrunk, as Norwood has increased its cash equivalent balance and nearly doubled its investment in debt securities.

As explained in my article from last year, Norwood Financial’s loan portfolio is very property-focused as it accounts for approximately 72% of the total loan portfolio. The majority is related to commercial real estate, but there is also a good part of residential real estate.

Breakdown of Norwood Financial's loan portfolio

Norwood Financial Investor Relations

The image above already explains why loan loss provisions have remained relatively high: even after adding the additional provisions, the total loan loss provision is only around 1.2% of the loan portfolio. loans, compared to less than 1% about a year ago.

The next logical step is to check what percentage of loans are currently in arrears. And this situation seems quite correct. The total amount of delinquent loans not accumulating was $1.2 million and with a total of $8.3 million in impaired loans purchased, it looks like Norwood Financial should be fine. Notably because impaired and unaccrued loans are mostly backed by real estate, losses should therefore remain relatively limited.

Norwood Financial Credit Quality Status

Norwood Financial Investor Relations

Investment thesis

I don’t currently have a long position in Norwood Financial, but I’m a bit surprised that the bank’s share price has barely budged since my previous post in January last year. The stock is currently trading at less than 10x 2021 earnings (which were not inflated by the addition of previously recorded loan loss provisions) and as the stock is trading at a P/TBV of around 1.35, stocks aren’t too expensive either. The dividend yield is acceptable (4%), but by keeping the payout ratio low, Norwood Financial is actually increasing its tangible book value by more than $1.5/share per year, so the current premium on the tangible book value decreases.

I don’t think I will be going long anytime soon as I need to keep an eye on my cash position, but Norwood Financial is still on my watch list for sure.

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Max Financial stock price: Max Financial stock price drops 0.44% as Sensex slips https://purpleribbonproject.com/max-financial-stock-price-max-financial-stock-price-drops-0-44-as-sensex-slips/ Tue, 05 Apr 2022 07:00:00 +0000 https://purpleribbonproject.com/max-financial-stock-price-max-financial-stock-price-drops-0-44-as-sensex-slips/ The shares of Max Financial Services Ltd. fell 0.44% to Rs 785.1 at 2:04 p.m. (IST) on Tuesday. Earlier in the day, the stock saw a gap in early trading. According to available BSE data, the total amount traded over the counter stood at 10,231 shares with a turnover of Rs 0.8 crore as of […]]]>
The shares of Max Financial Services Ltd. fell 0.44% to Rs 785.1 at 2:04 p.m. (IST) on Tuesday. Earlier in the day, the stock saw a gap in early trading.

According to available BSE data, the total amount traded over the counter stood at 10,231 shares with a turnover of Rs 0.8 crore as of 2:04 PM (IST). The stock traded at a price/earnings (P/E) multiple of 134.93, while the price-to-book ratio stood at 8.87.

The return on equity (ROE) was 12.72%, according to data from the exchange. The stock hit an intraday high of Rs 794.2 and a low of Rs 772.65 during the session and quoted a 52-week high of Rs 1147.9 and a 52-week low of Rs 700, 1.

The stock’s beta, which measures its volatility relative to the broader market, was 1.27.


Technical indicators

The 200-DMA (daily moving average) of the stock stood at Rs 973.14 on 05 April, while the 50-DMA was at Rs 825.58. If a stock is trading above 50-DMA and 200-DMA, it usually means that the immediate trend is up. On the other hand, if the stock is trading below 50-DMA and 200-DMA, it is considered to be in a downtrend. If it is trading between 50-DMA and 200-DMA, it suggests that the stock can go either way.

The relative strength index (RSI) of stood at 49.65. The RSI fluctuates between zero and 100. Traditionally, a stock is considered overbought when the RSI value is above 70 and oversold when it is below 30.

Promoter holder

As of December 31, 2021, promoters held 14.72% of the company’s capital, while FIIs held 47.94% and domestic institutional investors 29.31%.

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