Will Sonida (USA Stocks:SNDA) shadow AudioEye price jump?

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Aina Ster .  Story
AEYE Stock  USD 5.77  0.04  0.70%   
Aina Ster
By Aina Ster
Macroaxis Story
As many rational traders are trying to avoid software space, it makes sense to digest AudioEye a little further and understand how it stands against Sonida Senior and other similar entities. We are going to discuss some of the competitive aspects of both AudioEye and Sonida.
Published over three weeks ago
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Reviewed by Raphi Shpitalnik

By analyzing existing basic indicators between AudioEye and Sonida, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Sonida with a short position in AudioEye. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AudioEye has an asset utilization ratio of 83.59 percent. This indicates that the company is making $0.84 for each dollar of assets. An increasing asset utilization means that AudioEye is more efficient with each dollar of assets it utilizes for everyday operations.

How important is AudioEye's Liquidity

AudioEye financial leverage refers to using borrowed capital as a funding source to finance AudioEye ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AudioEye 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. Please check the breakdown between AudioEye's total debt and its cash.

How does AudioEye utilize its cash?

To perform a cash flow analysis of AudioEye, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AudioEye is receiving and how much cash it distributes out in a given period. The AudioEye cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
AudioEye Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (5 Million)

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze AudioEye revenue. Based on the latest financial disclosure, AudioEye reported 24.5 M of revenue. This is 99.4% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The revenue for all United States stocks is 99.74% higher than that of the firm. As for Sonida Senior we see revenue of 234.72 M, which is much higher than that of the Information Technology

SNDA
234.7 M
AEYE24.5 Million9.45
Sector0.00.0
SNDA234.72 Million90.55

Will AudioEye reverse after the next dip?

The standard deviation is down to 4.9 as of today. AudioEye shows above-average downside volatility for the selected time horizon. We advise investors to inspect AudioEye further and ensure that all market timing and asset allocation strategies are consistent with the estimation of AudioEye future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AudioEye's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact AudioEye's 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.

Our Final Perspective on AudioEye

Although many of the other players under the software—application industry are still a bit expensive, AudioEye may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current AudioEye valuation and our trade advice on AudioEye is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AudioEye.

Editorial Staff

Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments. 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 Aina Ster do not own shares of AudioEye. Please refer to our Terms of Use for any information regarding our disclosure principles.

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