Altra Story

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AIMC -- USA Stock  

USD 57.92  0.21  0.36%

It looks like Barnes will be up for a correction faster as its share price went up 1.21% today to Altra Industrial's 3.21%As many rational traders are trying to avoid industrials space, it makes sense to go over Altra Industrial Motion a little further and understand how it stands against Barnes and other similar entities. We are going to analyze some of the competitive aspects of both Altra and Barnes.
Published over a week ago
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Is Barnes more volatile than Altra Industrial Motion (NASDAQ:AIMC)?
By analyzing existing basic indicators between Altra Industrial and Barnes, 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 Barnes with a short position in Altra Industrial. 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. Altra Industrial has an asset utilization ratio of 270.43 percent. This suggests that the company is making $2.7 for each dollar of assets. An increasing asset utilization means that Altra Industrial Motion is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Altra or Barnes is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Altra Indtl dividends

A dividend is the distribution of a portion of Altra Indtl earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Altra Indtl dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Altra one year expected dividend income is about $0.3 per share.
As of February 27, 2021, Payment of Dividends and Other Cash Distributions is expected to decline to about (41 M). In addition to that, Dividend Yield is expected to decline to 0.0211.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-40 M-41 M
Dividend Yield 0.0218  0.0211 
Dividends per Basic Common Share 0.78  0.71 
Investing in dividend-paying stocks, such as Altra Indtl Mtn is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Altra Indtl must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Altra Indtl. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Altra Indtl's Liquidity

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

Correlation Between Altra and Barnes Group

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Altra Indtl together with similar or unrelated positions with a negative correlation. For example, you can also add Barnes to your portfolio. If Barnes is not perfectly correlated to Altra Indtl it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Altra Indtl for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between AIMC and B for more information.

Acquisition by Margot Hoffman of 507 shares of Altra Indtl subject to Rule 16b-3

Legal trades by Altra Indtl 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:
Altra insider trading alert for grant of common stock par value $0.001 by Margot Hoffman, the corporate stakeholder, on 16th of February 2021. This event was filed by Altra Industrial Motion C with SEC on 2021-02-16. 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.

Breaking down Altra Indtl Indicators

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

Lets now check Altra Industrial revenue. Based on the latest financial disclosure, Altra Industrial Motion reported 1.71 B of revenue. This is 51.12% lower than that of the Industrials sector and significantly higher than that of the Specialty Industrial Machinery industry. The revenue for all United States stocks is 81.88% higher than that of Altra Industrial. As for Barnes we see revenue of 1.21 B, which is much higher than that of the Specialty Industrial Machinery

Altra1.71 Billion
Barnes1.21 Billion
1.7 B
1.2 B

Our perspective of the current Altra Industrial slip

Current value at risk indicator falls down to -4.8. Possible price jump? Altra Industrial Motion currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.11. However, we do advice investors to further question Altra Industrial Motion expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Altra Industrial

When is the right time to buy or sell Altra Industrial Motion? Buying stocks such as Altra Industrial isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis. To conclude, as of the 12th of February 2021, our analysis shows that Altra Industrial hyperactively responds to market trends. The company is overvalued and projects below average odds of financial turmoil for the next 2 years. Our final 30 days 'Buy-vs-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 Ellen Johnson do not own shares of Altra Indtl Mtn. Please refer to our Terms of Use for any information regarding our disclosure principles.

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