MetroCity Bankshares, a prominent player in the Banks-Regional industry, traded on NASDAQ, has been under the microscope of investors lately. The stock's Price Action Indicator stands at 0.32, suggesting a potential upside. The stock's Valuation Real Value is currently at $18.82, slightly lower than the Valuation Market Value of $19.96. This discrepancy might signal an opportunity for investors to buy at a discount. However, the Valuation Hype Value stands at $20.31, indicating that the stock might be overhyped. The stock's Possible Upside Price is $23.56, while the Possible Downside Price is $18.56. The Analyst Target Price Estimated Value is $19, with the Analyst Lowest Estimated Target Price and Analyst Highest Estimated Target Price both standing at $19. The Naive Expected Forecast Value is $21.06, suggesting a potential for growth. The stock's Accumulation Distribution is at
185.85, and the Daily Balance Of Power is at
0.9697, indicating a strong buying pressure. However, the Analyst Overall Consensus is a 'Hold', with the Analyst Number of Holds standing at 1. The Rate Of Daily Change is
1.02, indicating a stable performance. With the Fiscal Year End in December, investors might want to reconsider their position in MetroCity Bankshares. The predictive indicators we utilize to assess MetroCity aid investors in analyzing its daily demand and supply, volume, patterns, and price fluctuations to ascertain the true value of MetroCity Bankshares. We employ various methods to determine the intrinsic value of MetroCity, based on widely accepted predictive technical indicators. As this unique economic environment persists, MetroCity Bankshares may present investors with additional surprises before the next earnings call. We will explore a few reasons why it remains possible for the company to generate above-average margins and positive cash flow.
The successful prediction of MetroCity Bankshares
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 MetroCity Bankshares, 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 MetroCity Bankshares based on MetroCity Bankshares hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to MetroCity Bankshares's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to MetroCity Bankshares's related companies.
Use Technical Analysis to project MetroCity expected Price
MetroCity Bankshares 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 MetroCity Bankshares technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of MetroCity Bankshares 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...MetroCity Bankshares Gross Profit
MetroCity Bankshares Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing MetroCity Bankshares 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 MetroCity Bankshares Gross Profit growth over the last 10 years. Please check MetroCity Bankshares'
gross profit and other
fundamental indicators for more details.
Breaking down MetroCity Bankshares Further
The company reported the previous year's revenue of 4.14
M. Net Income was 62.6
M with profit before overhead, payroll, taxes, and interest of 140.33
M.
Revenues Breakdown
MetroCity Bankshares Revenues yearly trend continues to be comparatively stable with very little volatility. Revenues will likely drop to about 136.2
M in 2023. 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. MetroCity Bankshares Revenues is comparatively stable at the moment as compared to the past year. MetroCity Bankshares reported Revenues of 141.58 Million in 2022
| 2010 | 81.24 Million |
| 2018 | 94.61 Million |
| 2019 | 100.87 Million |
| 2020 | 89.86 Million |
| 2021 | 131.04 Million |
| 2022 | 141.58 Million |
| 2023 | 136.2 Million |
MetroCity Bankshares has been on the radar of many investors recently, with a market capitalization of
$493.82M and a day typical price of $19.86. The company's low price to earnings ratio of 8.01X, coupled with a price to book value of 1.59X, indicates potential value for investors. With a net income of
$62.6M, the company has managed to maintain a profit margin of 0.44% and an operating margin of 0.64%. Despite this, MetroCity Bankshares has a significant downside variance of 4.55 and a maximum drawdown of 11.02, which may give investors pause. The company's risk-adjusted performance stands at 0.0971, and the market risk-adjusted performance is 6.4, indicating the company's ability to deliver returns while managing risk. The company's total assets amount to a robust $3.43B, supported by retained earnings of $285.83M. However, it's worth noting that the company has a probability of bankruptcy standing at 38.06%, which could be a concern for potential investors. The
financial health of the company is further indicated by a debt to equity ratio of 7.87%. In conclusion, while MetroCity Bankshares shows some promising financial indicators, the significant downside variance and potential bankruptcy risk should be considered by investors. As with any investment, a balanced view of risk and reward is crucial.
Some MetroCity technical indicators suggest correction
MetroCity Bankshares has recently displayed some worrisome technical indicators, suggesting a potential correction could be imminent. The bank's latest semi-deviation, a measure of downside risk, has escalated to 1.95. This elevated level signifies increased volatility and implies that the stock's returns could deviate considerably from their average value. Investors should proceed with caution, as this could indicate a period of instability for MetroCity Bankshares. Currently, MetroCity Bankshares exhibits a below-average downside deviation. It has an Information Ratio of 0.11 and a Jensen Alpha of 0.31. However, we recommend investors to further scrutinize MetroCity Bankshares' expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding different
market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators allows traders to gauge MetroCity Bankshares' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that accompanies bear markets can directly affect
MetroCity Bankshares' stock price, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.
The Bottom Line
Whereas some firms within the banks—regional industry are still a little expensive, even after the recent corrections, MetroCity Bankshares may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor exit any shares of MetroCity Bankshares at this time. The MetroCity Bankshares risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to MetroCity Bankshares.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of MetroCity Bankshares. Please refer to our
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