Guaranty Stock Story

GNTY -  USA Stock  

USD 36.77  0.68  1.82%

As many rational traders are trying to avoid financial services space, it makes sense to break down Guaranty Bancshares a little further and understand how it stands against First Bancorp and other similar entities. We are going to inspect some of the competitive aspects of both Guaranty and First.
Published over a month ago
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Should you exit your First Bancorp (NASDAQ:FNLC) and Guaranty Bancshares (NASDAQ:GNTY) positions after a rise?
By analyzing existing basic indicators between Guaranty Bancshares and First, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in First with a short position in Guaranty Bancshares. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Guaranty Bancshares has an asset utilization ratio of 7.07 percent. This suggests that the company is making $0.0707 for each dollar of assets. An increasing asset utilization means that Guaranty Bancshares is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Guaranty or First is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Guaranty Bancshares dividends

A dividend is the distribution of a portion of Guaranty Bancshares 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. Guaranty Bancshares 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. Guaranty one year expected dividend income is about $0.19 per share.
Payment of Dividends and Other Cash Distributions is likely to drop to about (9.2 M) in 2021. Dividend Yield is likely to drop to 0.0253 in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-8.5 M-9.2 M
Dividend Yield 0.026  0.0253 
Dividends per Basic Common Share 0.78  0.77 
Investing in stocks that pay dividends, such as stock of Guaranty Bancshares, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Guaranty Bancshares 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 Guaranty Bancshares. 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 Guaranty Bancshares's Liquidity

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

Correlation Between Guaranty and First Bancorp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Guaranty Bancshares together with similar or unrelated positions with a negative correlation. For example, you can also add First Bancorp to your portfolio. If First Bancorp is not perfectly correlated to Guaranty Bancshares it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Guaranty Bancshares for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between GNTY and FNLC for more information.

Note

Are you currently holding both Guaranty Bancshares and First Bancorp in your portfolio?
Please note if you are using this as a pair-trade strategy between Guaranty Bancshares and First Bancorp, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Guaranty Bancshares exotic insider transaction detected

Legal trades by Guaranty Bancshares 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:
Guaranty insider trading alert for general transaction of common stock by Tyson Abston, Chairman and CEO, on 9th of November 2021. This event was filed by Guaranty Bancshares Inc with SEC on 2021-11-09. 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.

Detailed Perspective On Guaranty Bancshares

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Guaranty Bancshares revenue. Based on the latest financial disclosure, Guaranty Bancshares reported 106.02 M of revenue. This is 99.05% lower than that of the Financial Services sector and significantly higher than that of the Banks—Regional industry. The revenue for all United States stocks is 98.88% higher than that of Guaranty Bancshares. As for First Bancorp we see revenue of 77.18 M, which is much higher than that of the Banks—Regional

Guaranty106.02 Million
Sector0.0
First77.18 Million
106 M
Guaranty
Sector
77.2 M
First

Possible November correction of Guaranty?

Current Information Ratio is up to 0.04. Price may slide again. Guaranty Bancshares has relatively low volatility with skewness of 1.87 and kurtosis of 9.93. However, we advise all investors to independently investigate Guaranty Bancshares 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 Guaranty Bancshares' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Guaranty Bancshares' 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.

The Bottom Line

While some other companies within the banks—regional industry are still a little expensive, even after the recent corrections, Guaranty Bancshares may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Guaranty valuation and our trade advice on Guaranty Bancshares is due to the recent market swings and your selection of investing horizon. 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 Guaranty Bancshares.

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 Ellen Johnson do not own shares of Guaranty Bancshares. Please refer to our Terms of Use for any information regarding our disclosure principles.

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