Acutus Story

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As many baby boomers are indifferent towards healthcare space, it makes sense to go over Acutus Medical against current market trends. We are going to address the reasons why we are still confident in anticipation of a recovery. Acutus Medical slowly supersedes the market. The returns on the market and returns on Acutus Medical appear slightly correlated for the last few months. Strong basic indicators of the company may suggest signs of short-term price drift for investors. Acutus Medical is scheduled to announce its earnings tomorrow.
Published over a week ago
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Will Acutus Medical (NASDAQ:AFIB) continue to slip in October?
The firm's average rating is Buy from 5 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Acutus Medical market sentiment investors' perception of the future value of Acutus. Let us look at a few aspects of Acutus technical analysis.

How important is Acutus Medical's Liquidity

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

How Acutus utilizes its cash?

To perform a cash flow analysis of Acutus Medical, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Acutus Medical is receiving and how much cash it distributes out in a given period. The Acutus Medical cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Acutus Medical 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 (55.99 Million)

Purchase by Flynn James E of 944444 shares of Acutus Medical

Legal trades by Acutus Medical insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Acutus insider trading alert for perchase of common stock by Flynn James E, the corporate stakeholder, on 15th of August 2020. This event was filed by Acutus Medical Inc with SEC on 2020-08-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Acutus Medical Semi Variance

Acutus Medical has current Semi Variance of 14.24. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.

Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Variance 
 = 
SUM(RET DEV)2 
N(ZERO) 
 = 
14.24
SUM = Summation notation
RET DEV = Actual return deviation over selected period
N(ZERO) = Number of points with returns less than zero
Let's now compare Acutus Medical Semi Variance to its closest peers:
AFIB
ESMC
ESTA
EW
ECTE
AFIB14.243369978968868
ESMC88.9
ESTA11.3
EW3.59
ECTE96.43

Acutus Medical has 81 percent chance to slip way below $34 in October

The potential upside is down to 8.84 as of today. Acutus Medical shows above-average downside volatility for the selected time horizon. We advise investors to inspect Acutus Medical further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Acutus Medical future alpha.

The Current Takeaway on Acutus Medical Investment

Whereas other companies under the medical devices industry are still a bit expensive, Acutus Medical may offer a potential longer-term growth to investors. To summarize, as of the 16th of September 2020, we believe that Acutus Medical is currently fairly valued with low chance of distress in the next two years. Our actual 30 days buy-sell recommendation on the company is Strong Hold.

About Contributor

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 Achuva Shats do not own shares of Acutus Medical. Please refer to our Terms of Use for any information regarding our disclosure principles.

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