Does Lakeland Financial (USA Stocks:LKFN) has enough cash to last in February?

Lakeland Financial has $50 million in liabilities and a Debt to Equity (D/E) ratio of 8.59. This suggests the company might struggle to generate enough cash to meet its financial obligations. It's important to evaluate the company's debt in conjunction with its cash reserves and equity to get a complete picture of its financial health.

Main Points

Considering a leveraged approach to trading Lakeland Financial (NASDAQ: LKFN), investors might be eyeing February for a potential rebound. With the company's net income from continuing operations at 93.8M, there's a solid foundation that could support a recovery, especially if market conditions align favorably. However, the downside variance of 2.87 suggests that volatility is a factor to keep in mind, which could amplify both gains and losses when using leverage. As always, it's crucial to weigh the risks and rewards carefully, particularly in the regional banking sector where fluctuations can be pronounced.
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Reviewed by Gabriel Shpitalnik

Every cloud has a silver lining, and for Lakeland Financial, the focus is on its leverage position as investors ponder a potential rebound. With net debt standing at a negative 101.8M, the company is in a favorable position, indicating more cash than debt. This financial cushion could provide stability amidst market fluctuations, especially in the regional banking sector. Despite the challenges, Lakeland's robust long-term investments of 1.2B suggest a strategic approach to growth and resilience. As February unfolds, investors will be keenly watching how these financial dynamics play out in the stock's performance. Lakeland Financial is set to release its earnings today. Currently, the company's stock-based compensation relative to revenue remains steady compared to last year. By January 24, 2025, the capital expenditure to depreciation ratio is expected to rise to 1.57, while the price-to-sales ratio may decrease to 4.38. With many baby boomers showing little interest in the banking sector, Lakeland Financial presents an intriguing option for millennials seeking unique investment opportunities.
Walthausen Small financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Walthausen Small, including all of Walthausen Small's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Walthausen Small assets, the company is considered highly leveraged. Understanding the composition and structure of overall Walthausen Small debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Instrument Allocation

The asset allocation of funds such as Walthausen Small usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Walthausen Small Cap
Details

Another angle On Walthausen Small

The recent indifference towards the small price fluctuations of Lakeland Financial may encourage investors to take a closer look at the firm as it is trading at a share price of 67.33 on 101,474 in trading volume. The company directors and management did not add any value to Lakeland Financial investors in December. However, most investors can still diversify their portfolios with Lakeland Financial to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.19.
The current volatility is consistent with the ongoing market swings in December 2024 as well as with Lakeland Financial unsystematic, company-specific events.

Liabilities Breakdown

5.3 B
Total Current Liabilities
1.8 B
Non Current Liabilities Total
Total Current Liabilities5.34 Billion
Liabilities And Stockholders Equity7.88 Billion
Non Current Liabilities Total1.75 Billion
Non Current Liabilities Other123.98 Million
They say, "What goes down must come up," and Lakeland Financial (NASDAQ: LKFN) investors are hoping this rings true as February approaches. With a debt-to-equity ratio of 8.59%, the company maintains a conservative leverage position, which could provide stability amid market fluctuations. Despite a profit margin of just 0.41%, Lakeland Financial's net income of 93.77 million suggests a solid foundation for potential recovery. As the regional bank sector navigates economic uncertainties, LKFN's forward dividend yield of 2.97% offers a tempting incentive for investors seeking both income and growth..

Lakeland Financial has 92 percent chance to finish above $66 in February

Lakeland Financial's market risk-adjusted performance might seem modest at -0.01, but there's a bright spot for investors considering the stock. With a 92% chance of exceeding $66 by February, the company seems to be on a promising path. This indicates that despite the slight negative tilt in risk-adjusted returns, the stock's potential for upward movement remains strong, offering a compelling opportunity for those looking to capitalize on its projected growth. Lakeland Financial exhibits relatively low volatility, with a skewness of 1.96 and kurtosis of 8.45. Understanding these volatility trends can help investors time their market moves.
During bear markets, increased volatility can impact Lakeland Financial's stock price, prompting investors to adjust their portfolios by acquiring different assets as prices drop.Despite the recent dip in Lakeland Financial's stock price, there are compelling reasons to consider it for your portfolio. The stock's valuation real value stands at 68.35, suggesting that the current market price might not fully reflect its potential. Analysts have set a target price estimated value of 71.25, indicating room for growth. With an overall consensus rating of 'Buy,' it seems that the market sentiment remains optimistic about Lakeland Financial's future performance. While no investment is without risk, the potential upside, combined with a solid analyst outlook, makes Lakeland Financial a stock worth watching closely..

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Editorial Staff

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