Silvergate Capital Corporation (NYSE: SI) stock jumped 16.75% on Monday to $16.03 against a previous-day closing price of $13.73. With 12.21 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.1 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $16.65 whereas the lowest price it dropped to was $13.69. The 52-week range on SI shows that it touched its highest point at $162.65 and its lowest point at $10.81 during that stretch. It currently has a 1-year price target of $16.20.
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 21.44%, but this was down by -5.09% over a month. Three-month performance dropped to -70.92% while six-month performance fell -81.47%. The stock lost -85.34% in the past year, while it has lost -7.87% so far this year. A look at the trailing 12-month EPS for SI yields -29.96 with Next year EPS estimates of 1.57. For the next quarter, that number is 0.18. This implies an EPS growth rate of 114.50% for this year and 9.69% 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, 31.66 million SI shares are outstanding with a float of 25.71 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.14 million, which was 9.92% higher than short shares on Sep 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.
Through their ownership of 80.55% of SI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.64% of SI, in contrast to 45.95% held by mutual funds. Shares owned by individuals account for 41.38%. As the largest shareholder in SI with 8.91% of the stake, The Vanguard Group, Inc. holds 2,819,963 shares worth 2,819,963. A second-largest stockholder of SI, BlackRock Fund Advisors, holds 1,768,706 shares, controlling over 5.59% of the firm’s shares. Miller Value Partners LLC is the third largest shareholder in SI, holding 1,748,984 shares or 5.53% stake. With a 7.04% stake in SI, the SPDR S&P Regional Banking ETF is the largest stakeholder. A total of 2,229,842 shares are owned by the mutual fund manager. The Opportunity Trust, which owns about 4.11% of SI stock, is the second-largest Mutual Fund holder. It holds 1,300,000 shares valued at 22.62 million. Vanguard Total Stock Market Index holds 2.85% of the stake in SI, owning 901,737 shares worth 15.69 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SI since 9 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 5 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 $25.00 and a low target of $11.00, the average target price over the next 12 months is $16.80. Based on these targets, SI could surge 55.96% to reach the target high and fall by -31.38% to reach the target low. Reaching the average price target will result in a growth of 4.8% 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 2023 earnings on 01/16/2024. Analysts have provided yearly estimates in a range of $1.04 being high and -$0.59 being low. For SI, this leads to a yearly average estimate of $0.39. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Silvergate Capital Corporation surprised analysts by -$0.18 when it reported $0.48 EPS against a consensus estimate of $0.66. The surprise factor in the prior quarter was -$0.12. Based on analyst estimates, the high estimate for the next quarter is $0.30 and the low estimate is -$0.03. The average estimate for the next quarter is thus $0.10.
Summary of Insider Activity:
Insiders traded SI stock several times over the past three months with 5 Buys and 5 Sells. In these transactions, 6,492 shares were bought while 2,662 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 32,352 while 24,699 shares were sold.