Money makes the world go round, and Capstar Financial Holdings (NASDAQ: CSTR) is spinning quite a tale for retail investors. With a market value of $18.48, the financial services company is making waves in the domestic banking sector. Analysts have set a high target price of $16, with a possible upside of $20.52, making it an attractive proposition for those looking to diversify their portfolio. However, it's not all smooth sailing. The possible downside price is $16.3, and the lowest estimated target price is $15.5. The overall consensus among analysts is to hold, with three holds on record. The estimated EPS for the next fiscal year ending in December is $1.31. Despite the potential risks, the real value of $18.29 and the naive expected forecast value of $18.41 suggest that Capstar could be a solid investment. As always, retail investors should do their due diligence before jumping on the bandwagon. Today, we will discuss Capstar Financial Holdings. We aim to analyze why the recent price movements of Capstar Financial suggest a potential rebound in February. Currently, Capstar Financial is trading at $18.48. The company has a historical hype elasticity of 0.12, while the average price elasticity to hype of its competitors is approximately 0.37.
The immediate return on the next news is expected to be minimal, while the current daily expected return stands at 0.38%. The volatility of the relative hype elasticity to Capstar Financial is around 215.03%. Similarly, the volatility of related hype concerning Capstar Financial is about 215.03%, with the expected price after the next announcement by competitors being $18.85.
Given an investment horizon of 90 days, the next anticipated press release is expected in approximately 8 days.
The successful prediction of Capstar 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 Capstar Financial Holdings, 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 Capstar Financial based on Capstar Financial hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Capstar Financial's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Capstar Financial's related companies.
Use Technical Analysis to project Capstar expected Price
Capstar 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, delisted stock market cycles, or different charting patterns.
A focus of Capstar Financial technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Capstar 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...Detailed Perspective On Capstar Financial
The latest spike in Capstar Financial short term price appreciation could raise concerns from retail investors as the firm is trading at a share price of
18.48 on very low momentum in volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in
December. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.11. The current volatility is consistent with the ongoing market swings in
December 2023 as well as with Capstar Financial unsystematic, company-specific events.
Revenues Breakdown
Capstar Financial Revenues yearly trend continues to be relatively stable with very little volatility. Revenues is likely to drop to about 113
M. Revenues usually refers to the amount of Revenue recognised from goods sold; services rendered; insurance premiums; or other activities that constitute an earning process. Interest income for financial institutions is reported net of interest expense and provision for credit losses. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. At this time, Capstar Financial's Revenues is relatively stable as compared to the past year.
| 2017 | 39.9 Million |
| 2018 | 64.31 Million |
| 2019 | 91.26 Million |
| 2020 | 108.09 Million |
| 2021 | 134.92 Million |
| 2022 | 118.14 Million |
| 2023 | 135.86 Million |
| 2024 | 113.01 Million |
As Warren Buffet once wisely noted, price is what you pay, value is what you get. Capstar Financial Holdings (NASDAQ: CSTR) seems to be emerging as a top pick for retail investors, offering a compelling blend of value and potential. With a Price to Earnings ratio of 10.73X, the stock appears undervalued compared to the broader market. The company's strong
financial health is evident in its EBITDA of $69.39M and cash flow from operations of $75.09M. Furthermore, the firm's low beta of 0.8 suggests less volatility compared to the market, making it a potentially safer bet in turbulent times. The company's potential upside of 5.38, coupled with a target price of $18.63, indicates room for growth. However, investors should also consider the company's total risk alpha of -0.16 and a probability of bankruptcy at 11.78%, which suggest some level of risk. In conclusion, while Capstar Financial Holdings presents an attractive investment opportunity, it's crucial for investors to balance the potential rewards with the inherent risks.
Our perspective of the latest Capstar Financial spike
Given the recent surge in Capstar Financial Holdings' stock, it's crucial to proceed with caution. The latest Information Ratio, a significant risk-adjusted performance measure, has increased to 0.1. This indicates a relatively low return for
the level of risk taken. Coupled with the potential for a price drop, this suggests that the recent spike may not be sustainable. Investors should remain vigilant and carefully consider their positions in this potentially volatile environment. As of January 21st, Capstar Financial's Risk Adjusted Performance is 0.1187, with a downside deviation of 1.69, and Mean Deviation of 1.49. Capstar Financial's
technical analysis provides a methodology to utilize historical prices and volume patterns to predict the company's future prices. In other words, this information can be used to determine if the company will mirror its model of historical prices and volume momentum, or if the prices will eventually revert.
We were able to interpolate and analyze data for nineteen technical drivers for Capstar Financial Holdings, which can be compared to its
competitors. Please verify Capstar Financial's coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Capstar Financial is priced correctly, given its regular price of 18.48 per share. Considering that Capstar Financial has a Jensen Alpha of 0.0873, we recommend you to validate Capstar Financial Holdings' current market performance to ensure the company can sustain itself in the future. In conclusion, the recent price spike in Capstar Financial Holdings (CSTR) stock is a reassuring sign for investors. The stock's valuation real value is currently at
$18.29, which is higher than the analyst's lowest estimated target price of $15.5. Furthermore, the potential upside price is at
$20.52, indicating a promising future for the stock. Despite the analyst overall consensus being a 'Hold' with three holds, the EPS estimate for the next fiscal year ending in December is a solid $1.31. Therefore, investors should consider the potential for growth in Capstar Financial Holdings, as the
current market conditions and future estimates suggest a positive trajectory. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Capstar Financial Holdings. Please refer to our
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