Volatility may be your only friend when it comes to investing in First Savings

With a Coefficient of Variation at 349.15 and a Jensen Alpha of 0.3115, First Savings Financial stock presents a potentially lucrative investment opportunity. The stock's recent Day Typical Price of $20.25, coupled with a Price Percent Change of 3.09%, indicates a positive momentum that could be capitalized on by savvy investors.

Main Points

Our investment recommendation module supplements the current analysts and expert consensus on First Savings, analyzing the firm's growth potential using all available fundamental, technical, and market-related data. Approximately 19.0% of the company's shares are held by insiders. First Savings Financial has a price-to-book (P/B) ratio of 0.65, and some equities with similar P/B ratios outperform the market in the long run. The company's last dividend was issued on June 14, 2024, and it underwent a 3:1 split on September 16, 2021.
Published over three months ago
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Reviewed by Raphi Shpitalnik

Time is money, especially when it comes to capitalizing on investment opportunities. First Savings Financial, a key player in the Banks - Regional industry, is currently under the spotlight. With an analyst overall consensus of a 'Buy' rating and a target price estimated value of $19.5, it's clear that the stock holds potential. However, the market's current valuation of the stock stands at $20, slightly above the analyst's target. This discrepancy, coupled with a daily balance of power of 0.4762, suggests a possible downside price of $18.29. Therefore, investors need to carefully assess the right time to invest in First Savings Financial to maximize returns. We use predictive indicators to assess First Savings Financial, aiding investors in analyzing its daily demand, supply, volume, patterns, and price fluctuations to determine its real value. Various methods are applied to calculate First's intrinsic value based on widely recognized predictive technical indicators. Today's focus is on First Savings, as we explore why investors may still consider investing in this business.
The successful prediction of First Savings 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 First Savings Financial, 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 First Savings based on First Savings hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to First Savings's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to First Savings's related companies.

Use Technical Analysis to project First expected Price

First Savings 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.
A focus of First Savings technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of First Savings 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...

First Savings Gross Profit

First Savings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing First Savings 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 First Savings Gross Profit growth over the last 10 years. Please check First Savings' gross profit and other fundamental indicators for more details.

What is driving First Savings Investor Appetite?

The company reported the previous year's revenue of 86.92 M. Net Income was 8.17 M with profit before overhead, payroll, taxes, and interest of 110.19 M.
 2021 2022 2023 2024 (projected)
Total Revenue111.9M86.9M100.0M50.8M
Interest Expense10.3M41.7M47.9M50.3M

Total Revenue Breakdown

First Savings' Total Revenue is increasing over the last several years with slightly volatile swings. Total Revenue is predicted to flatten to about 50.8 M. Total Revenue usually refers to the total amount of income generated by the sale of goods or services related to the company's primary operations. At this time, First Savings' Total Revenue is most likely to increase significantly in the upcoming years.
2017
2018
2019
2020
2021
2022
2023
2024
201749.09 Million
201883.94 Million
2019180.51 Million
2020177.61 Million
2021111.88 Million
202286.92 Million
202399.95 Million
202450.75 Million
As Warren Buffet once said, the stock market is a device for transferring money from the impatient to the patient. In the case of First Savings Financial, patience seems to be a virtue. With a market capitalization of $132.17M and a promising return on assets of 0.39%, the stock offers potential for long-term investors. The current valuation stands at $567.79M, indicating a significant upside potential. However, the company's high debt-to-equity ratio of 8.20% suggests a degree of risk. Therefore, while the timing seems right to capitalize on First Savings Financial stock, investors should exercise caution and patience, keeping Buffet's words in mind.

Are First Savings technical ratios showing a collapse?

First Savings Financial's technical ratios, particularly the Sortino ratio's dip to 0.27, suggest a potential decrease in volatility. This could indicate a dwindling potential for high returns, potentially impacting the stock's performance. Investors should monitor these indicators closely to anticipate significant shifts in the stock's trajectory. First Savings Financial has relatively low volatility, with skewness of 0.53 and kurtosis of 0.34. Understanding market volatility trends can help investors time the market. Using volatility indicators properly allows traders to measure First Savings' stock risk against market volatility during bullish and bearish trends.
The heightened volatility in bear markets can directly affect First Savings' stock price, causing investor stress as share values drop. This often prompts investors to rebalance their portfolios by purchasing different financial instruments as prices fall.In conclusion, while First Savings Financial's current market valuation stands at $20, its real value is slightly higher at $20.97, indicating a potential upside. However, the analyst's lowest estimated target price is $17.75, suggesting a possible downside. Despite this, the analyst overall consensus is a 'Buy' with two buys on record. Therefore, investors should carefully consider these factors before deciding to exit First Savings. It's crucial to weigh the potential upside price of $20.79 against the possible downside price of $18.29. The decision to exit should be based on a comprehensive analysis of these data points and the investor's individual risk tolerance and investment goals..

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Editorial Staff

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 Aina Ster do not own shares of First Savings Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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