Today SVB Financial Group (SIVB) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified SVB Financial Group ( SIVB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified SVB Financial Group as such a stock due to the following factors:

  • SIVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.9 million.
  • SIVB has traded 18,417 shares today.
  • SIVB is trading at a new lifetime high.

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More details on SIVB:

SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. SIVB has a PE ratio of 28. Currently there are 11 analysts that rate SVB Financial Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for SVB Financial Group has been 332,300 shares per day over the past 30 days. SVB Financial Group has a market cap of $7.3 billion and is part of the financial sector and banking industry. The stock has a beta of 1.12 and a short float of 2.1% with 3.84 days to cover. Shares are up 24.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SVB Financial Group as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Net operating cash flow has slightly increased to $47.62 million or 4.50% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -37.15%.
  • Compared to its closing price of one year ago, SIVB's share price has jumped by 28.46%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • SVB FINANCIAL GROUP's earnings per share declined by 12.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SVB FINANCIAL GROUP increased its bottom line by earning $5.35 versus $4.69 in the prior year. This year, the market expects an improvement in earnings ($6.22 versus $5.35).
  • The gross profit margin for SVB FINANCIAL GROUP is currently very high, coming in at 96.11%. Regardless of SIVB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 21.03% trails the industry average.
  • SIVB, with its decline in revenue, underperformed when compared the industry average of 0.1%. Since the same quarter one year prior, revenues fell by 18.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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