Acorda Therapeutics has a beta of 0.7906. Let's try to break down what Acorda's beta means in this case. As returns on the market increase, Acorda Therapeutics returns are expected to increase less than the market. However, during the bear market, the loss on holding Acorda Therapeutics will be expected to be smaller as well. The beta indicator helps investors understand whether Acorda Therapeutics moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Acorda deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Acorda Therapeutics. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Acorda Therapeutics
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Acorda Therapeutics' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Acorda Therapeutics. Your research has to be compared to or analyzed against Acorda Therapeutics' peers to derive any actionable benefits. When done correctly, Acorda Therapeutics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Acorda Therapeutics.
Watch out for price decline
Please consider monitoring Acorda Therapeutics on a daily basis if you are holding a position in it. Acorda Therapeutics is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Acorda Therapeutics stock to be traded above the $1 level to remain listed. If Acorda Therapeutics stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Acorda Therapeutics's Liquidity
Acorda Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Acorda Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Acorda Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Acorda Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Acorda Therapeutics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Acorda Therapeutics's total debt and its cash.
Acorda Therapeutics Gross Profit
Acorda Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Acorda Therapeutics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Acorda Therapeutics Gross Profit growth over the last 10 years. Please check Acorda Therapeutics'
gross profit and other
fundamental indicators for more details.
A Deeper look at Acorda
The modest gains experienced by current holders of Acorda Therapeutics could raise concerns from retail investors as the firm it trading at a share price of
4.73 on
50,738,800 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in
June. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.29. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Acorda Therapeutics partners.
Margin Breakdown
| Operating Margin | (60.24) |
| EBITDA Margin | (0.24) |
| Gross Margin | 0.75 |
| Profit Margin | (0.67) |
Are Acorda Therapeutics technical ratios showing a bounce-back?
Latest expected short fall is at -4.24. Acorda Therapeutics shows above-average downside volatility for the selected time horizon. We advise investors to inspect Acorda Therapeutics further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Acorda Therapeutics future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Acorda Therapeutics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Acorda Therapeutics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
While few other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Acorda Therapeutics may offer a potential longer-term growth to retail investors. To conclude, as of the 24th of July 2021, our primary 90 days buy vs. sell advice on the enterprise is
Hold. We believe Acorda Therapeutics is currently
undervalued with
close to average probability of financial unrest for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Acorda Therapeutics. Please refer to our
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