Teamshares (TMS)
Market Price (10/31/2026): $4.5 | Market Cap: $333.0 MilSector: Financials | Industry: Diversified Financial Services
Teamshares (TMS)
Market Price (10/31/2026): $4.5Market Cap: $333.0 MilSector: FinancialsIndustry: Diversified Financial Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Megatrend and thematic driversMegatrends include Future of Work & Ownership. Themes include Employee Ownership Models, and Small Business Succession Planning. | Weak multi-year price returns2Y Excs Rtn is -108%, 3Y Excs Rtn is -160% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 114% Key risksTMS key risks include [1] operational challenges in scaling and integrating its large volume of diverse acquisitions, Show more. |
| Megatrend and thematic driversMegatrends include Future of Work & Ownership. Themes include Employee Ownership Models, and Small Business Succession Planning. |
| Weak multi-year price returns2Y Excs Rtn is -108%, 3Y Excs Rtn is -160% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 114% |
| Key risksTMS key risks include [1] operational challenges in scaling and integrating its large volume of diverse acquisitions, Show more. |
Qualitative Assessment
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Teamshares (TMS) stock has lost about 45% since 6/30/2026 because of the following key factors:
1. Going Concern Warning and Significant Debt Maturities.
Teamshares faced a "going-concern warning" due to approximately $187.8 million of debt maturing within 12 months as of June 30, 2026, including an i80 facility with about $153.4 million outstanding that matures in fiscal Q4 2026. This warning from auditors likely triggered substantial investor concern regarding the company's financial stability and its ability to meet its short-term obligations, particularly after its Nasdaq debut in June 2026.
2. High Cost of Capital from $225 Million Preferred Equity Investment.
While Teamshares secured a $225 million preferred equity investment from T. Rowe Price on September 23, 2026, intended to fund acquisitions, this capital came with a notably high dividend rate of 16.0%, which could step down to 14.5% if certain operational thresholds are met. This high cost of capital may have been perceived negatively by investors, suggesting a more challenging or expensive funding environment for the company's growth strategy and potentially impacting future profitability.
Show more
Teamshares (TMS) stock has lost about 45% since 6/30/2026 because of the following key factors:
1. Going Concern Warning and Significant Debt Maturities.
Teamshares faced a "going-concern warning" due to approximately $187.8 million of debt maturing within 12 months as of June 30, 2026, including an i80 facility with about $153.4 million outstanding that matures in fiscal Q4 2026. This warning from auditors likely triggered substantial investor concern regarding the company's financial stability and its ability to meet its short-term obligations, particularly after its Nasdaq debut in June 2026.
2. High Cost of Capital from $225 Million Preferred Equity Investment.
While Teamshares secured a $225 million preferred equity investment from T. Rowe Price on September 23, 2026, intended to fund acquisitions, this capital came with a notably high dividend rate of 16.0%, which could step down to 14.5% if certain operational thresholds are met. This high cost of capital may have been perceived negatively by investors, suggesting a more challenging or expensive funding environment for the company's growth strategy and potentially impacting future profitability.
3. Inability of Q2 2026 Results to Offset Liquidity Concerns.
Teamshares reported its fiscal Q2 2026 results on August 14, 2026, after the period began. Although the market reacted with a modest +4.34% price change following the earnings release, the reported financial performance, including a net income of $9 million for fiscal Q2 2026, was seemingly insufficient to outweigh the significant liquidity and balance sheet concerns highlighted by auditors, contributing to sustained downward pressure on the stock.
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Stock Movement Drivers
Fundamental Drivers
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Market Drivers
6/30/2026 to 10/30/2026| Return | Correlation | |
|---|---|---|
| TMS | -46.1% | |
| Market (SPY) | 1.2% | 17.8% |
| Sector (XLF) | 5.4% | -3.9% |
Fundamental Drivers
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Market Drivers
3/31/2026 to 10/30/2026| Return | Correlation | |
|---|---|---|
| TMS | -74.7% | |
| Market (SPY) | 16.5% | 13.2% |
| Sector (XLF) | 14.9% | -3.2% |
Fundamental Drivers
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Market Drivers
9/30/2025 to 10/30/2026| Return | Correlation | |
|---|---|---|
| TMS | -74.7% | |
| Market (SPY) | 14.4% | 13.2% |
| Sector (XLF) | 6.2% | -3.2% |
Fundamental Drivers
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Market Drivers
9/30/2023 to 10/30/2026| Return | Correlation | |
|---|---|---|
| TMS | -74.7% | |
| Market (SPY) | 82.9% | 13.2% |
| Sector (XLF) | 77.8% | -3.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| TMS Return | 0% | 0% | 0% | 0% | 0% | -75% | -75% |
| Peers Return | 52% | -21% | 7% | 7% | -0% | -5% | 30% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| TMS Win Rate | 0% | 0% | 0% | 0% | 0% | 20% | |
| Peers Win Rate | 46% | 31% | 38% | 42% | 40% | 45% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| TMS Max Drawdown | 0% | 0% | 0% | 0% | 0% | -77% | |
| Peers Max Drawdown | -17% | -34% | -31% | -32% | -29% | -47% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: EQH, FRHC, TMS, RILY.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 10/30/2026 (YTD)
How Low Can It Go
| Event | TMS | S&P 500 |
|---|---|---|
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -49.5% | -17.9% |
| % Gain to Breakeven | 97.9% | 21.8% |
| Time to Breakeven | 498 days | 123 days |
In The Past
Teamshares's stock fell 0.0% during the 2013 Taper Tantrum. Such a loss loss requires a 0.0% gain to breakeven.
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Asset Allocation
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| Event | TMS | S&P 500 |
|---|---|---|
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -49.5% | -17.9% |
| % Gain to Breakeven | 97.9% | 21.8% |
| Time to Breakeven | 498 days | 123 days |
In The Past
Teamshares's stock fell 0.0% during the 2013 Taper Tantrum. Such a loss loss requires a 0.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Teamshares (TMS)
Teamshares (TMS) is a financial technology company dedicated to facilitating the transition of small businesses into employee-owned entities. Its core business involves acquiring established, profitable small businesses from retiring owners and implementing a structured process to convert them into companies where employees gradually become equity holders. This model aims to preserve local jobs, maintain business continuity, and generate wealth for the employee-owners.
The company provides a comprehensive suite of services, starting with the acquisition of businesses that fit its criteria. Following acquisition, Teamshares structures and finances the employee ownership transition, often leveraging its proprietary software platform to streamline operations, payroll, benefits, and financial management for these newly employee-owned companies. They act as a partner, offering ongoing operational and strategic support to ensure the long-term success and growth of the businesses under employee ownership.
Teamshares primarily serves two main groups: retiring small business owners seeking a smooth succession plan that values their legacy and employees, and the employees of these acquired businesses who are given the opportunity to become owners. Their market focus is on resilient, traditional small businesses across various sectors that are looking for a sustainable path forward in a transition of ownership.
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- Small Business Acquisition: Acquiring profitable small businesses from retiring owners to transition them into employee-owned entities.
- Employee Ownership Software Platform: Providing a proprietary software platform designed to manage financials, operations, and employee equity for their network of employee-owned businesses.
- Operational & Financial Support: Offering ongoing operational guidance, financial management assistance, and strategic resources to the leadership and employees of their companies.
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Teamshares (TMS) operates as a holding company that acquires small businesses from retiring owners and converts them into employee-owned companies. Once acquired, Teamshares provides these businesses with essential support, including software, financial products, and advice, to facilitate their growth and stability within the Teamshares network.
Given this unique business model, Teamshares does not sell products or services to external major customers in the traditional business-to-business (B2B) or business-to-consumer (B2C) sense. Therefore, it does not have "major customers" to list in terms of companies that purchase its offerings or categories of individuals it directly serves.
Instead, Teamshares' core activity involves acquiring and managing a portfolio of small businesses. These acquired businesses constitute its assets and are the sources of its revenue, rather than being external customers.
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Michael Brown, Co-founder & CEO
Michael Brown co-founded Teamshares in 2018 or 2019 with Alex Eu and Kevin Shiiba. Before becoming an entrepreneur, he worked in investment banking, advising corporations on mergers and acquisitions. He then transitioned to small business ownership by acquiring an electrical contracting business in Western Canada. Brown is noted for having a "200-year plan" for Teamshares, reflecting a long-term vision. He and the executive team have personally invested in the company.
Brian Gaebe, Chief Financial Officer
Brian Gaebe has extensive experience in finance and accounting. He has been serving as the Chief Accounting Officer and Director of Finance at Teamshares since March 2021. Prior to joining Teamshares, Gaebe was the Chief Accounting Officer and SVP of Corporate Finance at Discovery Midstream Holdings II from April 2019 to March 2021. He also held various positions at EXCO Resources, Inc., including Chief Accounting Officer and Corporate Controller from May 2016 to April 2019, and began his career at KPMG as a Manager.
Alex Eu, Co-founder & President
Alex Eu is a co-founder of Teamshares, alongside Michael Brown and Kevin Shiiba. He was also one of the early investors in Michael Brown's prior business ventures.
Kevin Shiiba, Co-founder & CTO
Kevin Shiiba is a co-founder of Teamshares, having established the company with Michael Brown and Alex Eu. He served as a formal technology advisor for the small businesses they were involved with.
Madhuri Kommareddi, Chief Operating Officer
Madhuri Kommareddi serves as the Chief Operating Officer at Teamshares.
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- Operational Challenges in Scaling and Integrating Diverse Acquisitions: Teamshares' strategy involves acquiring a high volume of small businesses across numerous industries, with a stated goal of 10,000 companies. The inherent complexity of integrating these diverse entities, establishing new leadership, and consistently implementing their employee ownership model across a broad and varied portfolio presents significant operational challenges. Reports indicate difficulties with business integration and leadership transitions post-acquisition, and concerns about inconsistent management approaches and a potential lack of specialized operational expertise.
- Financial Viability and Sustained Profitability of the Business Model: The company's tech-enabled model contributes to high operating costs, and it has historically contended with high interest rates and stagnant returns. The long-term ability to generate consistent profits and demonstrate sustained growth in employee equity value across its extensive and varied portfolio, while managing these substantial overheads, represents a critical financial risk.
- Dependence on a Continuous Supply of Suitable Acquisition Targets: Teamshares' growth is predicated on acquiring small businesses from retiring owners. Although there is a large market of such businesses, the company has specific acquisition criteria. Its unique model, which includes the integration of a replacement president, may lead to passing on potential opportunities or making lower offers compared to other buyers. A failure to consistently source and acquire a sufficient volume of high-quality, suitable businesses at attractive valuations could impede its growth and scalability.
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Teamshares (TMS) primarily focuses on acquiring small to medium-sized businesses (SMBs) from retiring owners and transitioning them into employee-owned entities. The company also provides financial products such as neobanking, credit cards, and insurance to these acquired businesses.
The addressable market for Teamshares' main service of facilitating employee ownership transitions for small businesses is substantial within the United States. An estimated 4.5 million American SMBs are projected to seek succession in the next decade. Additionally, approximately three million small and medium-sized enterprise (SME) owners in the U.S. are approaching retirement age.
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Expected Drivers of Future Revenue Growth for Teamshares (TMS)
Over the next 2-3 years, Teamshares (TMS) is expected to drive future revenue growth through several key strategies:
- Aggressive Acquisition of Small Businesses: Teamshares' core business model involves programmatically acquiring small businesses from retiring owners. The company targets businesses with $0.5 million to $5 million in EBITDA and has a long-term vision of building a network of 10,000 employee-owned small businesses across America. Continued execution of this acquisition-based model will be a primary driver of consolidated revenue growth.
- Enhanced Performance and Organic Growth of Portfolio Companies: Teamshares aims to improve the operational and financial performance of its acquired businesses by implementing new leadership, providing financial education, and fostering employee ownership. By aligning employee incentives, the company seeks to generate organic growth within its existing portfolio, contributing to overall revenue expansion.
- Expansion of Financial Products and Services: Teamshares is actively developing and rolling out a suite of financial and software services tailored for its network of employee-owned businesses. This includes recently launched digital banking services and business insurance, with plans for further development of a neobank, charge cards, and additional insurance solutions. These offerings represent new revenue streams and opportunities to increase revenue per acquired company.
- Leveraging its Tech-Enabled Platform for Scalability: The company's proprietary software and tech-enabled acquisition model allow it to systematize the buying process, equity management, and operations for a high volume of deals. This technological foundation facilitates efficient scaling of acquisitions and effective management of its growing portfolio, enabling more rapid revenue growth.
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Share Issuance
- The business combination with Live Oak Acquisition Corp V values the combined company at a pro forma enterprise value of $746 million and a pre-money equity value of $525 million.
- Existing venture investors, including Khosla Ventures and USV, will roll all of their equity into the public company.
- The transaction is 100% primary, with net proceeds expected to be used to acquire new operating subsidiaries.
Inbound Investments
- A committed $126 million PIPE (Private Investment in Public Equity) financing has been secured, led by accounts advised by T. Rowe Price Investment Management.
- Combined with Live Oak V's cash in trust (assuming no redemptions), the business combination could deliver up to $333 million of primary proceeds.
Outbound Investments
- Teamshares programmatically acquires small and medium-sized enterprises (SMEs) from retiring owners, targeting businesses generating between $0.5 million and $5 million of EBITDA.
- The company operates subsidiaries that generate over $400 million in consolidated revenue across more than 40 industries and 30 U.S. states.
- Teamshares aims to eventually own 20% of the businesses it acquires, with employees owning the remaining 80%.
Peer Outperformance in Diversified Financial Services
null| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Reinsurance | 6 | 35.1% | 68.9% | 123.0% | SPNT 175% · RGA 148% · RNR 148% |
| Investment Banking & Brokerage | 13 | -5.3% | 94.9% | 91.9% | IBKR 346% · SNEX 158% · GS 144% |
| Diversified Banks | 12 | 30.4% | 154.4% | 91.6% | CM 143% · RY 132% · JPM 125% |
| Life & Health Insurance | 20 | 16.2% | 53.5% | 82.5% | JXN 532% · UNM 314% · MFC 190% |
| Multi-line Insurance | 9 | 8.1% | 68.3% | 64.8% | GNW 114% · L 102% · AIZ 97% |
| Property & Casualty Insurance | 42 | 19.1% | 73.0% | 64.1% | PGR 172% · TRV 171% · ACGL 167% |
| Multi-Sector Holdings | 3 | 8.3% | 57.8% | 55.1% | BRK-B 89% · VOYA 55% · JEF 32% |
| Regional Banks | 261 | 32.6% | 98.8% | 53.2% | CBC 254% · FCNCA 194% · NIC 148% |
| Financial Exchanges & Data | 15 | 18.5% | 44.0% | 27.9% | CBOE 172% · VIRT 158% · CME 70% |
| Insurance Brokers | 15 | 3.7% | 11.4% | 19.5% | LIFE 405% · ARX 89% · AJG 73% |
| Asset Management & Custody Banks | 85 | -7.9% | 23.8% | 6.7% | WT 249% · VCTR 241% · AAMI 200% |
| Consumer Finance | 30 | 7.9% | 70.4% | 4.2% | ENVA 437% · FCFS 118% · AXP 95% |
| Diversified Financial Services ← | 4 | -2.0% | 21.7% | 3.9% | FRHC 180% · EQH 83% |
| Commercial & Residential Mortgage Finance | 14 | -51.6% | 25.3% | -1.7% | FNMA 449% · FMCC 399% · ACT 157% |
| Specialized Finance | 3 | 2.8% | 37.8% | -21.1% | HASI -21% · CACC -22% |
| Transaction & Payment Processing Services | 17 | 12.5% | 11.3% | -28.8% | V 103% · MA 96% · CPAY 62% |
| Mortgage REITs | 34 | -18.7% | -5.2% | -35.9% | RITM 36% · DX 19% · AGNC 10% |
| Diversified Capital Markets | 20 | -53.1% | 5.4% | -63.3% | LPLA 77% · TW 40% · RIOT -53% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 29.34 |
| Mkt Cap | 5.7 |
| Rev LTM | 2,399 |
| Op Inc LTM | 537 |
| FCF LTM | -19 |
| FCF 3Y Avg | 310 |
| CFO LTM | -14 |
| CFO 3Y Avg | 458 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 20.4% |
| Rev Chg 3Y Avg | 5.6% |
| Rev Chg Q | 4.6% |
| QoQ Delta Rev Chg LTM | 0.9% |
| Op Inc Chg LTM | 136.3% |
| Op Inc Chg 3Y Avg | 20.0% |
| Op Mgn LTM | 29.9% |
| Op Mgn 3Y Avg | 17.0% |
| QoQ Delta Op Mgn LTM | 1.0% |
| CFO/Rev LTM | -1.3% |
| CFO/Rev 3Y Avg | 10.9% |
| FCF/Rev LTM | -1.7% |
| FCF/Rev 3Y Avg | 10.1% |
Price Behavior
| Market Price | $4.43 | |
| Market Cap ($ Bil) | 0.2 | |
| First Trading Date | 04/14/2011 | |
| Distance from 52W High | -74.7% | |
| 50 Days | 200 Days | |
| DMA Price | $6.55 | $12.65 |
| DMA Trend | down | down |
| Distance from DMA | -32.3% | -65.0% |
| 3M | 1YR | |
| Volatility | 104.1% | 69.3% |
| Downside Capture | 188.56 | 158.50 |
| Upside Capture | 43.74 | -26.49 |
| Correlation (S&P 500) | 12.4% | 12.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.82 | 3.92 | 3.11 | 1.66 | 0.74 | 0.18 |
| Up Beta | 4.88 | 7.69 | 5.67 | 1.38 | 0.75 | 0.12 |
| Down Beta | 8.35 | 6.64 | 4.40 | 2.86 | 0.85 | 0.15 |
| Up Capture | 20% | 336% | 161% | 20% | 9% | 1% |
| Bmk +ve Days | 6 | 16 | 27 | 66 | 132 | 424 |
| Stock +ve Days | 13 | 22 | 29 | 30 | 30 | 30 |
| Down Capture | -214% | 78% | 221% | 239% | 124% | 71% |
| Bmk -ve Days | 16 | 26 | 37 | 60 | 120 | 328 |
| Stock -ve Days | 9 | 20 | 35 | 40 | 40 | 40 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TMS | |
|---|---|---|---|---|
| TMS | -64.7% | 105.1% | -2.25 | - |
| Sector ETF (XLF) | 9.8% | 14.4% | 0.41 | -3.2% |
| Equity (SPY) | 10.9% | 12.8% | 0.52 | 13.2% |
| Gold (GLD) | -2.0% | 28.6% | -0.08 | -1.8% |
| Commodities (DBC) | 48.2% | 20.6% | 1.79 | -2.0% |
| Real Estate (VNQ) | 10.2% | 13.7% | 0.45 | -3.0% |
| Bitcoin (BTCUSD) | -30.3% | 43.5% | -0.71 | 1.3% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TMS | |
|---|---|---|---|---|
| TMS | -18.7% | 105.1% | -2.25 | - |
| Sector ETF (XLF) | 8.6% | 18.3% | 0.33 | -3.2% |
| Equity (SPY) | 12.2% | 17.1% | 0.53 | 13.2% |
| Gold (GLD) | 16.2% | 19.0% | 0.68 | -1.8% |
| Commodities (DBC) | 9.2% | 19.5% | 0.35 | -2.0% |
| Real Estate (VNQ) | 0.9% | 18.9% | -0.06 | -3.0% |
| Bitcoin (BTCUSD) | 4.8% | 51.6% | 0.28 | 1.3% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with TMS | |
|---|---|---|---|---|
| TMS | -9.9% | 105.1% | -2.25 | - |
| Sector ETF (XLF) | 13.2% | 22.1% | 0.54 | -3.2% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 13.2% |
| Gold (GLD) | 11.4% | 16.5% | 0.56 | -1.8% |
| Commodities (DBC) | 8.2% | 18.1% | 0.37 | -2.0% |
| Real Estate (VNQ) | 5.3% | 20.7% | 0.21 | -3.0% |
| Bitcoin (BTCUSD) | 61.7% | 66.2% | 1.01 | 1.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 10/19/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/14/2026 | 4.3% | -16.9% | -14.2% |
| SUMMARY STATS | |||
| # Positive | 1 | 0 | 0 |
| # Negative | 0 | 1 | 1 |
| Median Positive | 4.3% | ||
| Median Negative | -16.9% | -14.2% | |
| Max Positive | 4.3% | ||
| Max Negative | -16.9% | -14.2% | |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/14/2026 | 4.3% | -16.9% | -14.2% |
| SUMMARY STATS | |||
| # Positive | 1 | 0 | 0 |
| # Negative | 0 | 1 | 1 |
| Median Positive | 4.3% | ||
| Median Negative | -16.9% | -14.2% | |
| Max Positive | 4.3% | ||
| Max Negative | -16.9% | -14.2% | |
Industry Resources
| Financials Resources |
| Federal Reserve Economic Data |
| Federal Reserve |
| FDIC Data |
| American Banker |
| The Banker |
| Banking Technology |
| Diversified Financial Services Resources |
| Finextra |
| Financial Services Review |
| Investopedia |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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