| 2021 | 2022 | 2023 | 2024 (projected) | Net Income | 261.3M | 269.1M | 309.5M | 256.6M | Gross Profit | 744.4M | 826.2M | 950.1M | 782.6M |
Ownership Breakdown
| Retail Investors15.51% | Institutions83.9% |
| Retail Investors | 15.51 | |
| Insiders | 0.59 | |
| Institutions | 83.9 |
What are the odds of United Community plunging in February?
 | By Vlad Skutelnik | Macroaxis Story |
United Community Banks (NASDAQ: UCBI), a key player in the domestic regional banking industry, is currently under scrutiny as potential indicators point towards a possible downtrend in February. With a market capitalization of $3.4 billion and a workforce of 3.2K full-time employees, the bank has been a steady performer with a return on assets of 1.01% and an operating margin of 37.6%. However, the current quarter's EPS estimate stands at $0.45, a figure that may not meet the expectations of some investors. Despite the Wall Street target price being set at $29.61, the analyst overall consensus remains a 'Hold', indicating a cautious approach towards the stock in the near term. Currently, United Community Banks' Cash and Equivalents Turnover is experiencing a decline compared to previous years. The bank's current Revenue to Assets ratio is projected to increase to 0.05, while its Revenue Per Employee is expected to decrease to less than $247.4K. As the banking sector garners increasing interest from investors, it's prudent to scrutinize United Community Banks. Despite the challenges, we maintain our optimism for a swift recovery. In this article, I will also discuss some fundamental factors that investors of United Community should consider in February.
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Reviewed by Michael Smolkin
United Community Banks, Inc. is currently valued at $28.92 per share, indicating a fair valuation with modest growth projections. On a performance scale of 0 to 100, United Community ranks at 6. The company's beta is 2.43, suggesting a somewhat significant risk relative to the market. This means that as the market rises, the company is likely to outperform it. Conversely, if the market experiences negative returns, United Community is likely to underperform.
While it's crucial to acknowledge United Community Banks' current price trends, it's equally important to be pragmatic about the equity's historical returns. Investors should consider United Community's Jensen Alpha, as well as the relationship between the potential upside and skewness. This information can aid in making swift decisions about whether United Community Banks' existing price patterns will revert.
Key Points
Investors should tread carefully with United Community Banks stock this February, as a potential downtrend could be on the horizon. The bank's Total Risk Alpha of -0.41 indicates a higher risk of potential loss, which could negatively impact the stock's performance. Additionally, the bank's EPS Estimate for the current quarter is only $0.45, a modest figure that may not be enough to attract new investors or maintain current ones. Lastly, the bank's Quarterly Earnings Growth is at a loss of 47%, which could further contribute to a potential downtrend. These factors combined suggest a cautious approach to investing in United Community Banks stock in the coming month. The performance of United Community Banks in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence United Community's stock prices. When investing in United Community, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, United Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as United Community carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.Watch out for price decline
Please consider monitoring United Community on a daily basis if you are holding a position in it. United Community is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as United Community stock to be traded above the $1 level to remain listed. If United Community stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
And What about dividends?
A dividend is the distribution of a portion of United Community earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. United Community dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. United one year expected dividend income is about USD0.61 per share.
Investing in dividend-paying stocks, such as United Community Banks is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in United Community must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for United Community. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is United Community's Liquidity
United Community financial leverage refers to using borrowed capital as a funding source to finance United Community Banks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. United Community financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to United Community's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of United Community's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between United Community's total debt and its cash.
Breaking down United Community Further
United Community maintains a total of 118.98 Million outstanding shares. The majority of United Community Banks outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in United Community to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in United Community Banks. Please pay attention to any change in the institutional holdings of United Community Banks as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
"Price is what you pay, value is what you get." It seems that the adage might be ringing true for United Community Banks, as signs point to a potential downtrend in February.With a PEG ratio of 17.42X, the bank's stock seems overvalued when compared to its EPS estimate of 2.1 for the current year. Further pointing to potential risk is the Value at Risk of -2.7, hinting at possible losses for investors. The bank's operating margin is also notably low at 0.38%, potentially indicating inefficiency. The bank has managed to keep its total debt relatively low at 1.03B, which may provide some cushion against financial headwinds. However, the Probability of Bankruptcy at 37.25% is a glaring warning sign. All these factors combined, investors might need to brace for a possible downtrend in United Community Banks stock in the coming month. .
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