First Stock Story

FMBI -  USA Stock  

USD 21.51  0.31  1.46%

It seems as First Midwest will continue to recover much faster as its share price surged up 1.62% today. First Midwest Bncp current daily volatility is 1.65 percent, with a beta of 0.85 and an alpha of 0.22 over DOW. As many millenniums are trying to avoid banking, it makes sense to concentrate on First Midwest Bncp a little further and try to understand its current market patterns. We will evaluate why recent First Midwest price moves suggest a bounce in February.
Published over three months ago
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Is First Midwest (NASDAQ:FMBI) stock way too aggressive for baby boomers?
First Midwest Bncp currently holds roughly 2.02 B in cash with 262.7 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 17.66.
Our investment recommendation module complements current analysts and expert consensus on First Midwest. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Investing in First Midwest, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding First Midwest along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of First Midwest'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 First Midwest 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 First Midwest. Your research has to be compared to or analyzed against First Midwest's peers to derive any actionable benefits. When done correctly, First Midwest'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 First Midwest Bancorp.

How important is First Midwest's Liquidity

First Midwest financial leverage refers to using borrowed capital as a funding source to finance First Midwest Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. First Midwest 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 First Midwest's total debt and its cash.

How does First utilize its cash?

To perform a cash flow analysis of First Midwest, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash First Midwest is receiving and how much cash it distributes out in a given period. The First Midwest cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
First Midwest Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 155.3 Million

First Midwest Correlation with Peers

Investors in First can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in First Midwest Bancorp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of First Midwest and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities First is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of First for more details

Disposition of 1631 shares by Kevin Geoghegan of First Midwest subject to Rule 16b-3

Legal trades by First Midwest 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:
First insider trading alert for disposition of common stock by Kevin Geoghegan, EVP Chief Credit Officer, on 18th of February 2022. This event was filed by First Midwest Bancorp Inc with SEC on 2022-02-18. Statement of changes in beneficial ownership - SEC Form 4. Kevin Geoghegan currently serves as executive vice president and chief credit officer of First Midwest Bncp [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.

Breaking down First Midwest Further

First Midwest appears to be very steady, given 3 months investment horizon. First Midwest Bncp secures Sharpe Ratio (or Efficiency) of 0.13, which denotes the company had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for First Midwest Bncp, which you can use to evaluate the future volatility of the firm. Please utilize First Midwest's Coefficient Of Variation of 593.6, downside deviation of 1.74, and Mean Deviation of 1.27 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

First may start a recoup in February

The downside deviation is down to 1.74 as of today. First Midwest Bncp has relatively low volatility with skewness of -0.39 and kurtosis of 0.25. However, we advise all investors to independently investigate First Midwest Bncp 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 First Midwest'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 First Midwest'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.

First Midwest Implied Volatility

First Midwest's implied volatility exposes the market's sentiment of First Midwest Bncp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if First Midwest'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 First Midwest stock will not fluctuate a lot when First Midwest's options are near their expiration.

Our Bottom Line On First Midwest Bncp

While other companies within the banks—regional industry are still a little expensive, even after the recent corrections, First Midwest may offer a potential longer-term growth to stockholders. While some mid-run oriented stockholders may not share our view, we believe it may be a good time to acquire new shares of First.

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 Vlad Skutelnik do not own shares of First Midwest Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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