Erie Indemnity Stock Performance

ERIE
 Stock
  

USD 268.83  3.90  1.43%   

On a scale of 0 to 100, Erie Indemnity holds a performance score of 16. The firm shows a Beta (market volatility) of 0.472, which means possible diversification benefits within a given portfolio. Let's try to break down what Erie Indemnity's beta means in this case. As returns on the market increase, Erie Indemnity returns are expected to increase less than the market. However, during the bear market, the loss on holding Erie Indemnity will be expected to be smaller as well. Although it is vital to follow Erie Indemnity historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Erie Indemnity technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please utilizes Erie Indemnity information ratio, value at risk, kurtosis, as well as the relationship between the sortino ratio and semi variance to make a quick decision on whether Erie Indemnity price patterns will revert.
  
Erie Indemnity Performance
16 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Erie Indemnity are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish forward indicators, Erie Indemnity exhibited solid returns over the last few months and may actually be approaching a breakup point. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0163
Payout Ratio
0.81
Last Split Factor
3:1
Forward Annual Dividend Rate
4.44
Dividend Date
2022-10-20
Ex Dividend Date
2022-10-04

Erie Indemnity Price Channel

Quick Ratio1.09
Fifty Two Week Low158.46
Fifty Two Week High274.83
Payout Ratio77.81%
Trailing Annual Dividend Yield1.49%

Erie Indemnity Relative Risk vs. Return Landscape

If you would invest  21,255  in Erie Indemnity on August 28, 2022 and sell it today you would earn a total of  5,628  from holding Erie Indemnity or generate 26.48% return on investment over 90 days. Erie Indemnity is currently generating 0.3832% in daily expected returns and assumes 1.7696% risk (volatility on return distribution) over the 90 days horizon. In different words, 15% of stocks are less volatile than Erie Indemnity, and 93% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Erie Indemnity is expected to generate 1.29 times more return on investment than the market. However, the company is 1.29 times more volatile than its market benchmark. It trades about 0.22 of its potential returns per unit of risk. The DOW is currently generating roughly 0.08 per unit of risk.

Erie Indemnity Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Erie Indemnity's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Erie Indemnity, and traders can use it to determine the average amount a Erie Indemnity's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.2166

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Estimated Market Risk
 1.77
  actual daily
 
 15 %
of total potential
 
1515
Expected Return
 0.38
  actual daily
 
 7 %
of total potential
 
77
Risk-Adjusted Return
 0.22
  actual daily
 
 16 %
of total potential
 
1616
Based on monthly moving average Erie Indemnity is performing at about 16% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Erie Indemnity by adding it to a well-diversified portfolio.

About Erie Indemnity Performance

To evaluate Erie Indemnity Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Erie Indemnity generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Erie Indemnity Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Erie Indemnity market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Erie Indemnity's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Average Assets 15.06  16.25 
Return on Average Equity 28.33  24.86 
Return on Invested Capital 0.25  0.24 
Return on Sales 0.14  0.15 

Things to note about Erie Indemnity

Checking the ongoing alerts about Erie Indemnity for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Erie Indemnity help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Erie Indemnity Alerts

Equity Alerts and Improvement Suggestions

About 46.0% of the company shares are held by company insiders
On 20th of October 2022 Erie Indemnity paid $ 1.11 per share dividend to its current shareholders
Latest headline from news.google.com: Dont Ignore The Fact That This Insider Just Sold Some Shares In Erie Indemnity Company - Simply Wall St
Continue to Investing Opportunities. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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Is Erie Indemnity's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Erie Indemnity. If investors know Erie Indemnity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Erie Indemnity listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.06) 
Market Capitalization
14.1 B
Quarterly Revenue Growth YOY
0.078
Return On Assets
0.1
Return On Equity
0.22
The market value of Erie Indemnity is measured differently than its book value, which is the value of Erie Indemnity that is recorded on the company's balance sheet. Investors also form their own opinion of Erie Indemnity's value that differs from its market value or its book value, called intrinsic value, which is Erie Indemnity's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Erie Indemnity's market value can be influenced by many factors that don't directly affect Erie Indemnity's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Erie Indemnity's value and its price as these two are different measures arrived at by different means. Investors typically determine Erie Indemnity value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Erie Indemnity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.