Will Akari Therapeutics (NASDAQ:AKTX) be in financial trouble before October?


USD 0.64  0.01  1.59%   

Akari Therapeutics Plc is scheduled to announce its earnings today. As many passive investors are finally getting excited about healthcare space, Akari Therapeutics Plc could be a good starting point. Here we also measure the ability of Akari Therapeutics to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
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The firm shows a Beta (market volatility) of 0.2673, which signifies not very significant fluctuations relative to the market. Let's try to break down what Akari's beta means in this case. As returns on the market increase, Akari Therapeutics returns are expected to increase less than the market. However, during the bear market, the loss on holding Akari Therapeutics will be expected to be smaller as well. Even though it is essential to pay attention to Akari Therapeutics Plc historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in 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. Akari Therapeutics Plc exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Akari Therapeutics Plc has an expected return of -0.54%. Please be advised to confirm Akari Therapeutics Plc information ratio and the relationship between the value at risk and market facilitation index to decide if Akari Therapeutics Plc performance from the past will be repeated at some point in the near future.
Akari Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Akari Therapeutics, including all of Akari Therapeutics's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Akari Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Akari Therapeutics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Watch out for price decline

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

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

How does Akari utilize its cash?

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

Detailed Perspective On Akari Therapeutics

Net Loss for the year was (16.76 M) with profit before overhead, payroll, taxes, and interest of 0.

Our take on today Akari Therapeutics slide

Akari Therapeutics current maximum drawdown rises over 43.04. Akari Therapeutics Plc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Akari Therapeutics Plc independently to ensure intended market timing strategies are aligned with expectations about Akari Therapeutics volatility. Akari Therapeutics Plc is a potential penny stock. Although Akari Therapeutics 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 Akari Therapeutics Plc. 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 Akari 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.

Our Takeaway on Akari Therapeutics Investment

While some companies in the biotechnology industry are either recovering or due for a correction, Akari Therapeutics may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 22nd of September 2022, our research shows that Akari Therapeutics is a rather dangerous investment opportunity with a very high odds of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our actual 90 days advice on the company is Strong Sell.

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 Vlad Skutelnik do not own shares of Akari Therapeutics Plc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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