We provide trade advice to complement the prevailing
expert consensus on Allot Communications. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Allot Communications income statement, its balance sheet, and the statement of cash flows. Potential Allot Communications investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Allot Communications investors may use each financial statement separately, they are all related. The changes in Allot Communications's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Allot Communications's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Allot Communications
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Allot Communications performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Allot Communications shares is the value that is considered the true value of the share. If
the intrinsic value of Allot is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Allot Communications. Please read more on our
fundamental analysis page.
How effective is Allot Communications in utilizing its assets?
Allot Communications reports assets on its Balance Sheet. It represents the amount of Allot resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Allot Communications aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Systems Software space. To get a better handle on how balance sheet or income statements item affect Allot volatility, please check the breakdown of all its
fundamentals.
Are Allot Communications Earnings Expected to grow?
The
future earnings power of Allot Communications involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Allot Communications factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Allot Communications
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Allot
expected earnings.
An Additional Perspective On Allot Communications
Many companies such as Allot Communications have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Allot is distributed among investors.
Ownership Allocation
Allot Communications holds a total of thirty-six million four hundred ten thousand
outstanding shares. The majority of Allot Communications
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Allot Communications to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Allot Communications. Please pay attention to any change in the institutional holdings of Allot Communications as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Retail Investors20.88% | | Institutions76.56% |
| Retail Investors | 20.88 |
| Insiders | 2.56 |
| Institutions | 76.56 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Allot Communications has an asset utilization ratio of 69.93 percent. This implies that the company is making $0.7 for each dollar of assets. An increasing asset utilization means that Allot Communications is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets137.9 M | Assets Non Current61.4 M | | |
| Current Assets | 137.87 Million | 58.31 |
| Assets Non Current | 61.4 Million | 25.97 |
| Goodwill | 36.67 Million | 15.51 |
| Tax Assets | 508,000 | 0.21 |
Our Allot analysis implies possible reversion in June
The variance is down to 19.03 as of today. Allot Communications exhibits very low volatility with skewness of -0.42 and kurtosis of 1.62. However, we advise investors to further study Allot Communications technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Allot Communications' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Allot Communications' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Allot Communications Implied Volatility
Allot Communications' implied volatility exposes the market's sentiment of Allot Communications stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Allot Communications' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Allot Communications stock will not fluctuate a lot when Allot Communications' options are near their expiration.
Whereas some companies in the software—infrastructure industry are either recovering or due for a correction, Allot Communications may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 17th of May 2022, we see that Allot Communications responds to the market. The firm is
undervalued with
very low odds of distress within the next 24 months. However, our primary 90 days 'Buy-Sell' recommendation on the firm is
Strong Sell.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Allot Communications. Please refer to our
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