Fidelity D & D Bancorp's 15-minute chart has triggered both RSI Overbought and Bollinger Bands Narrowing indicators on August 26, 2025 at 15:30. This suggests that the stock price has experienced a rapid ascent, potentially exceeding fundamental support levels. Furthermore, the magnitude of price fluctuations has decreased, indicating a narrowing range of stock price movement.
On August 26, 2025, at 15:30, Fidelity D & D Bancorp's 15-minute chart triggered both the Relative Strength Index (RSI) Overbought and Bollinger Bands Narrowing indicators. These indicators suggest that the stock price has experienced a rapid ascent, potentially exceeding fundamental support levels. Moreover, the narrowing of the Bollinger Bands indicates a decrease in the magnitude of price fluctuations, signaling a narrowing range of stock price movement.
Despite the strong fundamentals, Fidelity D & D Bancorp has faced challenges in rewarding investors. The bank's stock performance has been underwhelming, with a 5.45% decline in share price since 2020, lagging behind major indices like the SPDR S&P 500 ETF (SPY) and the iShares Russell 3000 ETF (IWV) [1]. However, the bank has shown resilience in its financial performance. Revenue grew from $53.7 million in 2020 to $85 million in the trailing twelve months (TTM), a compound annual growth rate (CAGR) of 9.62%. Similarly, earnings before tax (EBT) and GAAP net income have seen significant improvements, with EBT rising from $18.36 million to $27.48 million, and GAAP net income increasing from $13.04 million to $23.71 million [1].
The bank's asset quality has also improved, with non-performing assets to assets declining from 0.39% in 2020 to 0.13% in the TTM. Free cash flow (FCF) has grown from -$1.09 million in 2020 to $32.05 million in the TTM, reflecting the growing profitability of the firm. The bank's total assets grew from $1.7 billion in 2020 to $2.7 billion in the TTM, compounding at a rate of 9.69% a year [1].
While the indicators suggest caution, investors should be aware that the stock price performance does not necessarily reflect the underlying fundamentals. The bank's valuation remains attractive, with a potential upside of 96.28% from the current price, and a target share price of $84.73 [1].
Investors should monitor the stock closely, looking for signs of a floor in the trading price and momentum building. Until then, the stock only merits a "Hold" rating.
References:
[1] https://seekingalpha.com/article/4815799-fidelity-d-and-d-bancorp-fundamentals-firm-but-investor-sentiment-holds-the-reins
[2] https://www.ainvest.com/news/fidelity-bancorp-fundamentals-strong-investor-sentiment-holds-key-success-2508/
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