Alkermes Stock Story


USD 26.02  0.55  2.16%   

It seems Alkermes Plc may not have a good chance to recover from the latest fall as its shares fell again. The entity current daily volatility is 2.35 percent, with a beta of 0.75 and an alpha of 0.14 over DOW. As many baby boomers are still indifferent towards current volatility, Alkermes Plc. We will cover the possibilities of making Alkermes Plc into a steady grower in August.
Published over two weeks ago
View all stories for Alkermes Plc | View All Stories

Will Alkermes Plc (NASDAQ:ALKS) latest volatility spike scare retail investors?

Alkermes Plc currently holds roughly 528.87 M in cash with 168.54 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.24. The company currently holds 415.33 M in liabilities with Debt to Equity (D/E) ratio of 0.39, which is about average as compared to similar companies. Alkermes Plc has a current ratio of 2.15, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Alkermes Plc until it has trouble settling it off, either with new capital or with free cash flow. So, Alkermes Plc's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Alkermes Plc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Alkermes to invest in growth at high rates of return. When we think about Alkermes Plc's use of debt, we should always consider it together with cash and equity.
Investing in Alkermes Plc, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Alkermes Plc along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Alkermes Plc's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Alkermes Plc in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Alkermes Plc. Your research has to be compared to or analyzed against Alkermes Plc's peers to derive any actionable benefits. When done correctly, Alkermes Plc's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Alkermes Plc.

How important is Alkermes Plc's Liquidity

Alkermes Plc financial leverage refers to using borrowed capital as a funding source to finance Alkermes Plc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alkermes Plc 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 Alkermes Plc'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 Alkermes Plc, but it might be worth checking our own buy vs. sell analysis

Alkermes Plc Correlation with Peers

Investors in Alkermes can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Alkermes Plc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Alkermes Plc and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Alkermes is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Alkermes for more details

A Deeper Perspective On Alkermes Plc

Alkermes Plc secures Sharpe Ratio (or Efficiency) of -0.0318, which signifies that the company had -0.0318% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Alkermes Plc exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Alkermes Plc Risk Adjusted Performance of 0.0275, downside deviation of 2.33, and Mean Deviation of 2.02 to double-check the risk estimate we provide.

Chances of Alkermes Plc to rebound

The kurtosis is down to 4.62 as of today.
As of the 27th of July, Alkermes Plc shows the Mean Deviation of 2.02, risk adjusted performance of 0.0275, and Downside Deviation of 2.33. Alkermes Plc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect data for nineteen technical drivers for Alkermes Plc, which can be compared to its rivals. Please confirm Alkermes Plc information ratio, as well as the relationship between the potential upside and kurtosis to decide if Alkermes Plc is priced correctly, providing market reflects its regular price of 27.97 per share. Given that Alkermes Plc has jensen alpha of 0.1359, we suggest you to validate Alkermes Plc's prevailing market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Alkermes Plc Investment

While other entities in the biotechnology industry are either recovering or due for a correction, Alkermes Plc may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to sell some or all of your Alkermes Plc holdings as it seems the potential growth was already fully factored into the current price. 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 Alkermes Plc.

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 Alkermes Plc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to