IBD Stock Analysis
- Just below 250.04 buy point, with 260.47 alternate entry
- Relative strength line right at highs
- Earnings growth accelerating
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:04PM EDT on
Signature Bank is the IBD Stock Of The Day as the commercial bank hovers around a buy point following a strong earnings report and growth in its Bitcoin business. SBNY stock fell slightly Wednesday.
New York-based Signature is a full-service commercial bank with 36 private client offices on the East Coast. The bank offers clients investment, brokerage, wealth management, and insurance services via Signature Securities Group subsidiary.
The company is also active in the cryptocurrency markets. During its first-quarter earnings call in late April, management said the bank will start offering clients bitcoin-backed cash loans for its cryptocurrency clients. The bank reported an increase of 110 crypto customers during the quarter. In total, its nearly 750 crypto customers deposited $4.4 billion during the quarter.
Signature also reported first-quarter earnings and revenue results that topped Wall Street expectations. The bank has seen several quarters of accelerating earnings and revenue growth.
Last year, Signature launched its blockchain-backed digital payments platform, Signet, for crypto customers.
SBNY Stock Technical Analysis
Shares dipped 0.4% to 249.07 on the stock market today. SBNY stock has dipped back below a 250.04 buy point from a cup base, according to a weekly MarketSmith chart. Signature Bank stock initially broke out on April 26, trading just above or below that key level since then.
The stock has found support at the key 21-day line. If the stock moves to 260.47 or above, it will offer an alternate entry from a high handle.
The relative strength line, which tracks performance vs. the S&P 500 index, is right at highs too, a sign of strength.
SBNY stock has a C Accumulation/Distribution Rating, which indicates similar buying and selling by institutional investors over the last 13 weeks.
The bank has a 93 Composite Rating out of 99 and an 81 EPS Rating. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
Signature is ranked No. 27 in IBD’s Banks-Northeast group.
Follow Gillian Rich on Twitter for investing news and more.
YOU MAY ALSO LIKE: