Is SVB Financial Group Stock a Buy?
Since mid-February, stock for SVB Financial Group (NASDAQ: SIVB) -- the holding company for Silicon Valley Bank -- has gone from trading around roughly $270 per share in mid-February to now hovering around $160 per share, eroding nearly 41% of shareholder value. It's not exactly a surprise considering that most of the broader stock market has taken a hit from efforts to stop the spread of the coronavirus pandemic.
The banking sector has been hit particularly hard. The Nasdaq Bank Index, which is comprised of small and larger regional banks, has declined by roughly 37% over the same timeframe, and the KBW Bank index, a group of the largest banks in the country, has seen a 38.7% decline.
Unlike most traditional banks, SVB Financial is a niche player that focuses heavily on working with companies in the startup and tech sectors. The company, which holds $71 billion in assets, has four main divisions: a global commercial bank, a venture capital investment arm, a private banking practice, and an investment bank operation focused on life science and healthcare.
Source Fool.com
