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Should You Buy First Busey Corporation (BUSE) At $30.81?

First Busey Corporation (NASDAQ:BUSE), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NasdaqGS in the over the last few months, increasing to $32.32 at one point, and dropping to the lows of $28.92. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether BUSE’s current trading price of $30.81 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at BUSE’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for First Busey

What’s the opportunity in BUSE?

The stock is currently trading at $30.81 on the share market, which means it is overvalued by 49% compared to my intrinsic value of $20.68. This means that the opportunity to buy BUSE at a good price has disappeared! In addition to this, it seems like BUSE’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because BUSE’s stock is less volatile than the wider market given its low beta.

What kind of growth will BUSE generate?

NasdaqGS:BUSE Future Profit Dec 12th 17
NasdaqGS:BUSE Future Profit Dec 12th 17

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. BUSE’s earnings over the next few years are expected to increase by 66.55%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has well and truly priced in BUSE’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe BUSE should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on BUSE for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for BUSE, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on First Busey. You can find everything you need to know about BUSE in the latest infographic research report. If you are no longer interested in First Busey, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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