Is now the time to sell Arrowmark Financial (USA Stocks:BANX)?
 | By Raphi Shpitalnik | Macroaxis Story |
The asset utilization ratio is a metric that indicates the revenue generated for every dollar of assets reported by a company. Arrowmark Financial Corp has an asset utilization ratio of 3.77 percent, which means that the company earns $0.0377 for each dollar of assets. An increasing asset utilization ratio suggests that Arrowmark Financial Corp is becoming more efficient in using its assets for day-to-day operations.
Approximately 26.0% of Arrowmark Financial Corp's shares are held by institutional investors, such as insurance companies. The company has a price-to-book (P/B) ratio of 0.8. Historically, some equities with similar price-to-book ratios have outperformed the market over the long term.
Arrowmark Financial Corp issued its last dividend on October 19, 2023.
Major Takeaways
Arrowmark Financial Corp (NASDAQ: BANX), operating in the dynamic asset management industry, has demonstrated a compelling investment profile with a Coefficient of Variation at 1.1K, suggesting a favorable risk-reward balance for savvy investors. The stock's Jensen Alpha of 0.0839 indicates that it has outperformed expectations based on its risk profile, hinting at the company's potential to continue delivering value to its shareholders. With a Mean Deviation of just 0.90, Arrowmark Financial Corp has maintained a relatively stable performance, bolstering investor confidence in the face of market volatility. The company's recent trading at an Open Price of $17.05 and reaching a High Price of $17.37 reflects a steady Price Change of $0.08, showcasing its resilience and potential for growth in the near term. Moreover, the Sortino Ratio standing at 0.0536 may not be the highest, but it still underscores a level of risk-adjusted returns that could attract investors looking for a blend of stability and profitability. Arrowmark Financial Corp's investment allure is further enhanced by its ability to manage downside risks effectively, as evidenced by a Downside Variance of 1.22, positioning it as a potentially lucrative option for investors aiming to capitalize on the ongoing profitability of the asset management sector.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
In the world of finance, what goes up must be carefully analyzed. Investors are turning their gaze toward Arrowmark Financial Corp (NASDAQ: BANX), a player in the capital markets sector, to determine if its recent performance is a harbinger of continued success. With a fiscal year that ends in December, Arrowmark Financial operates within a category known for its complexity and potential for high rewards. The current investment climate is buzzing with speculation about BANX's future profitability. Analysts are closely watching the company, with an overall consensus leaning towards a 'Buy' rating. In fact, three analysts have rated the stock as a 'Strong Buy,' while one maintains a 'Buy' stance, reflecting a sense of optimism about the stock's potential. This sentiment is further bolstered by the possible upside price of **$18.58**, suggesting a room for growth beyond its current valuation market value of **$17.13**. While the naive expected forecast value stands at $17.27, which is closely aligned with the valuation hype value, it's the possible downside price of $15.96 that keeps investors on their toes. This figure represents a potential dip that shareholders must consider when evaluating their positions. Despite the uncertainty that comes with any investment in the financial services sector, Arrowmark Financial Corp's stock presents an intriguing case for those looking to tap into the capital markets space. With an analyst highest estimated target price reaching up to $20.2M, the company could well be on its way to unlocking significant value for its investors, provided it navigates the market's ebb and flow with strategic finesse. The predictive indicators we utilize to assess Arrowmark Financial Corp assist investors in evaluating its daily demand and supply dynamics, trading volume, patterns, and price fluctuations to ascertain the true value of the company. We employ various methods to determine the intrinsic value of Arrowmark, drawing on widely recognized predictive technical indicators.
In the current unique economic climate, Arrowmark Financial may present investors with additional surprises in the coming two to three weeks. We will explore the reasons behind our continued confidence in the prospect of a recovery.The successful prediction of Arrowmark Financial stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Arrowmark Financial Corp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Arrowmark Financial based on Arrowmark Financial hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Arrowmark Financial's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Arrowmark Financial's related companies.
A focus of Arrowmark Financial technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Arrowmark Financial trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...
Use Technical Analysis to project Arrowmark expected Price
Arrowmark Financial technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
Arrowmark Financial Gross Profit
Arrowmark Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arrowmark Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Arrowmark Financial Gross Profit growth over the last 10 years. Please check Arrowmark Financial's gross profit and other fundamental indicators for more details.
Breaking it down a bit more
This firm reported the previous year's revenue of 7.86 M. Net Income was 5.37 M with profit before overhead, payroll, taxes, and interest of 21.53 M. In the world of finance, it's often said that past performance is not indicative of future results, yet investors frequently look to historical data for hints of what may come. Arrowmark Financial Corp (NASDAQ: BANX), with a market capitalization of **$121.77M** and total assets amounting to **$208.5M**, presents an interesting case for those seeking investment opportunities within the financial services sector. The company's profit margin stands at a modest 0.56%, indicating a tight control over earnings relative to its revenue of $7.86M.With a Price to Earnings (P/E) ratio of 14.79X and a Price to Book (P/B) value of 0.80X, BANX appears to be reasonably valued in the market. The firm's earnings per share (EPS) of 2.01X and a five-year return of 7.42% suggest a stable earnings history and a potential for continued profitability. Moreover, the company's cash flow from operations is a robust $15.84M, providing it with a solid foundation for operational liquidity and investment. While the probability of bankruptcy stands at a concerning 65.74%, the current ratio of 3.11X indicates that the company has more than enough liquidity to meet its short-term obligations. With these factors in mind, investors may find Arrowmark Financial Corp to be an intriguing option, especially if they are looking for a company with a track record of profitability and a stable financial footing. .
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