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Stock Yards Bank - AI Stock Analysis

Analysis generated April 8, 2024

Stock Yards Bank & Trust is a well-established regional financial institution that provides a variety of banking services, including commercial and personal banking products, mortgage lending, and wealth management services. Its operation is primarily centered in the regional market, where it has built a reputation for customer service excellence and community engagement.

Fundamental Analysis

Stock Yards Bank's recent financials present a mixed picture. Revenue for the last quarter was $80M, a decrease of 1.26% from the previous quarter, and a 5.43% decrease year-over-year. This trend is concerning as it may indicate underlying business challenges. Net income for the last quarter was $24M, which is a decrease of 11.62% quarter-over-quarter and a decrease of 19.70% compared to the same quarter last year. These declining figures highlight profitability concerns that could impact investor sentiment. Despite these decreases, EBITDA stands at $65M, demonstrating a growth of 1.98% since the previous quarter and a robust increase of 28.28% year-over-year, suggesting operational strengths that could offset revenue and net income declines. The current P/E ratio of 12.58 suggests that the stock is reasonably valued compared to earnings, neither overvalued nor undervalued in the current market. These numbers provide a foundational view of the company’s performance and are critical for performing valuations and comparing the company with peers.

Technical Analysis

The stock price of Stock Yards Bank today is $46.72, reflecting an increase of 1.52% from one month ago, pointing to a short-term upward trend. However, the decrease of 8.79% from a year ago is a red flag for potential long-term issues. The stock currently shows a bullish trend with the SMA10 at 46.07, higher than the previous SMA10 of 45.69, indicating a consistent upward price movement. Nonetheless, the Relative Strength Index (RSI) at 32.9 presents a neutral condition, suggesting that the stock is neither overbought nor oversold at the current level. The RSI provides a technical indicator of the stock's momentum and is significant in determining entry and exit points for traders.

Alternative Data Analysis

In examining alternative data points, Stock Yards Bank has demonstrated growth and positive signals from both its operations and consumer interest. The number of open positions has increased to 28, up 12% in recent months. This increase in job postings could imply internal growth and expansion plans, which are typically positive signals for a company's future prospects. Additionally, the website visitor count increasing by 22% can potentially be linked to an increase in customer acquisition. With customer engagement on social media platforms rising – 200 Instagram followers (a 13% increase) and 420 Twitter followers (a 7% increase) over the past couple of months, this showcases growing brand interest and community engagement but in relatively small absolute numbers. However, the lack of significant change in mobile app downloads may suggest an area for strategic improvement in digital customer acquisition and engagement.

Conclusion and Recommendation

Based on the provided data, Stock Yards Bank exhibits certain foundational strengths in operations but faces challenges in profitability and market sentiment. Fundamental indicators such as declining revenue and net income necessitate caution, while a solid EBITDA growth and a reasonable P/E ratio suggest some underlying strengths. Technically, the current trend is bullish, but the drop in stock price over the past year is a concern. The alternative data presents a company in expansion with increasing online engagement, but the lack of growth in app downloads may require attention. As such, potential investors should approach with caution, considering both the present financial concerns and future growth indicators. Balanced against each other, a 'Hold' recommendation seems prudent, suitable for investors who are already positioned but requiring monitoring and reevaluation as new financial data becomes available.