Horizon Bancorp (NASDAQ:HBNC), operating in the financial services industry based in United States, maintained its current share price over the past couple of month on the NasdaqGS, with a relatively tight range of $28.3 to $30.88. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Horizon Bancorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Horizon Bancorp
What is Horizon Bancorp worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 20% above my intrinsic value, which means if you buy Horizon Bancorp today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $25.12, there’s only an insignificant downside when the price falls to its real value. So, is there another chance to buy low in the future? Given that Horizon Bancorp’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of Horizon Bancorp look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 83.77% over the next couple of years, the future seems bright for Horizon Bancorp. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? HBNC’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on HBNC, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, 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 Horizon Bancorp. You can find everything you need to know about Horizon Bancorp in the latest infographic research report. If you are no longer interested in Horizon Bancorp, 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.