Healthy Upside Potential: Silvergate Capital Corporation (SI)

Silvergate Capital Corporation (NYSE: SI) stock jumped 1.33% on Friday to $95.80 against a previous-day closing price of $94.54. With 1.36 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.32 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $100.94 whereas the lowest price it dropped to was $95.03. The 52-week range on SI shows that it touched its highest point at $239.26 and its lowest point at $50.65 during that stretch. It currently has a 1-year price target of $132.90.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SI was up-trending over the past week, with a rise of 10.04%, but this was up by 58.79% over a month. Three-month performance dropped to -23.42% while six-month performance fell -13.60%. The stock lost -4.71% in the past year, while it has lost -35.36% so far this year. A look at the trailing 12-month EPS for SI yields 3.46 with Next year EPS estimates of 7.98. For the next quarter, that number is 1.35. This implies an EPS growth rate of 114.50% for this year and 61.03% for next year. EPS is expected to grow by 33.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 50.60%.

Float and Shares Shorts:

At present, 31.22 million SI shares are outstanding with a float of 30.99 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.36 million, which was 13.80% higher than short shares on Jun 14, 2022. In addition to Mr. Alan J. Lane as the firm’s Pres, CEO & Director, Ms. Kathleen M. Fraher serves as its Exec. VP & COO.

Institutional Ownership:

Through their ownership of 78.08% of SI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.60% of SI, in contrast to 40.06% held by mutual funds. Shares owned by individuals account for 37.19%. As the largest shareholder in SI with 8.76% of the stake, The Vanguard Group, Inc. holds 2,770,328 shares worth 2,770,328. A second-largest stockholder of SI, BlackRock Fund Advisors, holds 1,593,989 shares, controlling over 5.04% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SI, holding 1,441,622 shares or 4.56% stake. With a 2.79% stake in SI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 883,368 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.40% of SI stock, is the second-largest Mutual Fund holder. It holds 758,941 shares valued at 40.63 million. iShares Russell 2000 ETF holds 2.22% of the stake in SI, owning 701,154 shares worth 37.53 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SI since 10 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SI analysts setting a high price target of $200.00 and a low target of $77.00, the average target price over the next 12 months is $129.40. Based on these targets, SI could surge 108.77% to reach the target high and fall by -19.62% to reach the target low. Reaching the average price target will result in a growth of 35.07% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SI will report FY 2022 earnings on 01/17/2023. Analysts have provided yearly estimates in a range of $5.82 being high and $4.54 being low. For SI, this leads to a yearly average estimate of $5.08. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Silvergate Capital Corporation surprised analysts by $0.29 when it reported $1.13 EPS against a consensus estimate of $0.84. The surprise factor in the prior quarter was $0.33. Based on analyst estimates, the high estimate for the next quarter is $1.69 and the low estimate is $1.20. The average estimate for the next quarter is thus $1.42.

Summary of Insider Activity:

Insiders traded SI stock several times over the past three months with 9 Buys and 1 Sells. In these transactions, 6,101 shares were bought while 709 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 112 over the past year. The total number of shares bought during that period was 66,833 while 367,463 shares were sold.

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