Is it a right time to manage Applied Genetic high volatility


USD 0.27  0.01  3.85%   

Given the investment horizon of 90 days Applied Genetic is expected to under-perform the market. In addition to that, the company is 7.57 times more volatile than its market benchmark. It trades about -0.08 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.06 per unit of volatility. Although many risk-takers are getting more into healthcare space, some of us are not very happy with Applied Genetic's current volatility. What exactly are Applied Genetic shareholders getting in October? The current Applied risk factors may impact the value of the stock as we estimate Applied Genetic as currently undervalued. The real value is approaching 4.26 per share.
Published over a week ago
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This firm conducts business under Healthcare sector and is part of Biotechnology industry.
The firm shows a Beta (market volatility) of 0.6176, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Applied's beta means in this case. As returns on the market increase, Applied Genetic returns are expected to increase less than the market. However, during the bear market, the loss on holding Applied Genetic will be expected to be smaller as well. Even though it is essential to pay attention to Applied Genetic Tech historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Applied Genetic Tech exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Applied Genetic Tech has an expected return of -0.67%. Please be advised to confirm Applied Genetic Tech downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Applied Genetic Tech performance from the past will be repeated at some point in the near future.
Volatility is a rate at which the price of Applied Genetic or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Applied Genetic may increase or decrease. In other words, similar to Applied's beta indicator, it measures the risk of Applied Genetic and helps estimate the fluctuations that may happen in a short period of time. So if prices of Applied Genetic fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Applied Genetic on a daily basis if you are holding a position in it. Applied Genetic 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 Applied Genetic stock to be traded above the $1 level to remain listed. If Applied Genetic 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 Applied Genetic's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Applied Genetic, but it might be worth checking our own buy vs. sell analysis

Acquisition by Doyleygay Hope of 147900 shares of Applied Genetic subject to Rule 16b-3

Legal trades by Applied Genetic 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:
Applied insider trading alert for grant of stock option (right to buy) by Doyleygay Hope, General Counsel, on 24th of August 2022. This event was filed by Applied Genetic Technolog with SEC on 2022-08-24. 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.

Detailed Perspective On Applied Genetic

The big decline in price over the last few months for Applied Genetic Tech could raise concerns from investors as the firm is trading at a share price of 0.3 on 951,345 in volume. The company executives failed to add value to investors and position the firm supply of money to exploit market volatility in August. However, diversifying your holdings with Applied Genetic Tech or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.31. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Applied Genetic partners.

Will Applied Genetic continue to go out of control?

Applied Genetic current maximum drawdown builds up over 73.47. Applied Genetic Tech is displaying above-average volatility over the selected time horizon. Investors should scrutinize Applied Genetic Tech independently to ensure intended market timing strategies are aligned with expectations about Applied Genetic volatility. Applied Genetic Tech is a potential penny stock. Although Applied Genetic may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Applied Genetic Tech. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Applied instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Current Takeaway on Applied Genetic Investment

Whereas few other entities in the biotechnology industry are either recovering or due for a correction, Applied Genetic may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Applied valuation and our trade advice on Applied Genetic 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 Applied Genetic.

Editorial Staff

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 Applied Genetic Tech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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