SBNY - Quant ratings flashed red on SVB Financial Signature Bank; Wall Street stayed green

2023-03-13 15:17:53 ET

Up until March 9, the average Wall Street analyst rating on SVB Financial ( NASDAQ: SIVB ) was Buy, however the Seeking Alpha Quant system flashed Sell as early as July 28.

For the first two weeks of February 2023, it had a Hold rating before falling into the red again on Feb. 16.

The Quant rating is calculated using more than 100 metrics for the each stock, falling into five categories — Value, Growth, Profitability, Momentum and EPS Revisions. Not all factors have the same weighting. Some have a higher importance than others. The rating also takes into account a stock's size and risk, which aren't included in the five main factor grades.

The average SA Author's rating on SVB Financial ( SIVB ) flashed red in November 2022.

The SA Quant rating also turned negative on Signature Bank ( NASDAQ: SBNY ) in July 2022, with a brief switch to Hold in September. Meanwhile, the Wall Street analyst average rating had been consistently at Buy in the past year, though the proportion of Hold ratings increased starting in December.

As for SA Authors, Logan Kane and Binary Tree Analytics both Sell ratings on SBNY .

The SA Quant rating's Strong Buy recommendations have outperformed the S&P 500 every year in the past 12 years .

See the Strong Buy recommendations for regional banks here . Note that the Quant rating's three worst scores went to Silvergate Capital ( NYSE: SI ), SVB Financial ( SIVB ), and Signature Bank ( SBNY ). For a narrower selection, take a look at Alpha Picks.

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