Is Middlefield (NASDAQ:MBCN) outlook still optimistic?


USD 28.10  0.55  2.00%   

While some baby boomers are getting worried about financial services space, it is reasonable to outline Middlefield Banc against economic and market trends. As we have suggested previously, Middlefield Banc is beginning its slide as institutional investors shift to be more bearish due to the increased sector volatility. The returns on investing in Middlefield Banc and the market returns of the last few months appear not sensitive to each other. Persistent fundamental indicators of the company may also entail signals of long-standing gains for Middlefield institutional investors. Middlefield Banc is scheduled to announce its earnings tomorrow.
Published over two months ago
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The company's average rating is Strong Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Middlefield Banc market sentiment investors' perception of the future value of Middlefield. Let us look at a few aspects of Middlefield technical analysis. About 28.0% of the company shares are owned by institutional investors. Middlefield Banc has price-to-book ratio of 1.04. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity next dividend is scheduled to be issued on the 2nd of June 2022. The firm had 2-1 split on the 12th of November 2019.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Middlefield Banc. In general, we focus on analyzing Middlefield Banc stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Middlefield Banc's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Middlefield Banc's intrinsic value. In addition to deriving basic predictive indicators for Middlefield Banc, we also check how macroeconomic factors affect Middlefield Banc price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Middlefield Banc's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Middlefield Banc in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Middlefield Banc. Your research has to be compared to or analyzed against Middlefield Banc's peers to derive any actionable benefits. When done correctly, Middlefield Banc's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Middlefield Banc.

How important is Middlefield Banc's Liquidity

Middlefield Banc financial leverage refers to using borrowed capital as a funding source to finance Middlefield Banc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Middlefield Banc 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. Please check the breakdown between Middlefield Banc's total debt and its cash.

How does Middlefield utilize its cash?

To perform a cash flow analysis of Middlefield Banc, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Middlefield Banc is receiving and how much cash it distributes out in a given period. The Middlefield Banc cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Middlefield Banc exotic insider transaction detected

Legal trades by Middlefield Banc insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Middlefield insider trading alert for general transaction of common stock by Voinovich Michael C, the corporate stakeholder, on 12th of September 2022. This event was filed by Middlefield Banc Corp with SEC on 2022-09-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Middlefield Banc Standard Deviation

Middlefield Banc has current Standard Deviation of 1.32. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation 
SQRT = Square root notation
V =   Variance of Middlefield Banc returns
Let's now compare Middlefield Banc Standard Deviation to its closest peers:

Middlefield Banc has 72 percent chance to finish below $26 next week

Middlefield Banc latest standard deviation surges over 1.32. Middlefield Banc has relatively low volatility with skewness of 0.53 and kurtosis of 1.57. However, we advise all investors to independently investigate Middlefield Banc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Middlefield Banc's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Middlefield Banc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Middlefield Banc Implied Volatility

Middlefield Banc's implied volatility exposes the market's sentiment of Middlefield Banc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Middlefield Banc's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Middlefield Banc stock will not fluctuate a lot when Middlefield Banc's options are near their expiration.

The Bottom Line

Whereas some other companies in the banks—regional industry are either recovering or due for a correction, Middlefield may not be as strong as the others in terms of longer-term growth potentials. While some institutional investors may not share our view, we believe it may be a good time to increase your existing holdings in Middlefield as the risk-reward trade off is appealing enough to hold a position. 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 Middlefield Banc.

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 Gabriel Shpitalnik do not own shares of Middlefield Banc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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