The stock of Oconee Federal Financial stock is seeing heavy institutional trader accumulation. The three-month change in institutional ownership is a whopping +21.6%.
Oconee Federal continues to earn Bauer Financial’s 5-Star Superior Rating. This rating means Oconee Federal is among the strongest financial institutions in the country. You can find out more about Oconee Federal Financial here.
The problem I have with this stock is that I can’t identify the catalyst that is driving it higher. I talk about the importance of identifying catalysts in this lesson.
Oconee Federal Financial Stock
The stock is thinly traded with an average volume of about 2.8K so you have to be careful trading this stock. The Effective Volume study shows that large players are accumulating the stock which supports the increase in institutional ownership. The Twiggs Money Flow is positive which also supports the idea that this stock is being accumulated.
I see this stock as a short term swing trade with the goal of a 5% profit then get out quickly. I like the clearly defined stop loss level of $26.50 in case the trade goes against us.
Oconee Federal Financial Review
OFED has a Return On Asserts of 1.13%. This is among the best returns in the industry. The industry average is 0.74%. OFED outperforms 90% of its industry peers. OFED has a Profit Margin of 29.65%. This is among the best returns in the industry. The industry average is 19.66%. OFED outperforms 90% of its industry peers. OFED has a good Piotroski-F score of 7.00. This indicates a good health and good profitability for OFED. OFED's Return On Equity of 6.42% is inline with the rest of the industry. The industry average Return On Equity is 6.80%.
When comparing the current price to the book value of OFED, we can conclude it is valued correctly. It is trading at 1.88 times its book value. The Price/Earnings Ratio is 29.34, which means the current valuation is very expensive for OFED. OFED's Price/Earning Ratio is slightly more expensive than the industry average, which is at 19.41. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates an expensive valuation of the company. Compared to an average industry price book ratio of 1.26, OFED is valued more expensive than its industry peers. 89% of the companies listed in the same industry are valued cheaper.
The Earnings Per Share has been growing slightly by 9.30% over the past year. The Earnings Per Share has been growing slightly by 7.66% on average over the past 5 years. The Revenue has decreased by -5.22% in the past year. The Revenue has been growing slightly by 8.02% on average over the past 5 years.
With a Debt to Equity ratio of 0.00, OFED is one of the better performing companies in its industry. It outperforms 82% of its industry peers.
OFED has one of the better Altman-Z scores in its industry. It is much better than the industry average of 0.23. OFED has better score than most of its industry peers. The Piotroski-F score of OFED is 7.00. This is a strong score and indicates good health and profitability for OFED. Based on the Altman-Z score of 0.55, OFED is in the distress zone but has a low risk of bankruptcy.
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