AstroNova Story

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ALOT -- USA Stock  

USD 10.97  0.12  1.11%

It appears AstroNova may not recover as fast as we have hopped for as its price went down 7.92% today. AstroNova's current daily volatility is 3.02 percent, with a beta of -0.19 and an alpha of 0.89 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to review AstroNova based on its technical indicators. What exactly are AstroNova shareholders getting in January?
Published over a month ago
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Is AstroNova (NASDAQ:ALOT) stock way too aggressive for baby boomers?
AstroNova currently holds roughly 11.23 M in cash with 11.38 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.57. Our trade advice tool can cross-verify current analyst consensus on AstroNova and to analyze the company potential to grow in the current economic cycle.
Investing in AstroNova, 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 AstroNova 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 AstroNova's stock 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 AstroNova 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 AstroNova. Your research has to be compared to or analyzed against AstroNova's peers to derive any actionable benefits. When done correctly, AstroNova'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 AstroNova.

How important is AstroNova's Liquidity

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

How AstroNova utilizes its cash?

To perform a cash flow analysis of AstroNova, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AstroNova is receiving and how much cash it distributes out in a given period. The AstroNova cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AstroNova Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. AstroNova reported Net Cash Flow from Operations of 3.71 Million in 2020

AstroNova Correlation with Peers

Investors in AstroNova can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AstroNova. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AstroNova and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AstroNova 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 AstroNova for more details

A Deeper look at AstroNova

AstroNova appears to be somewhat reliable, given 1 month investment horizon. AstroNova secures Sharpe Ratio (or Efficiency) of 0.32, which signifies that the company had 0.32% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing AstroNova technical indicators you can presently evaluate if the expected return of 0.98% is justified by implied risk. Please makes use of AstroNova Risk Adjusted Performance of 0.3399, mean deviation of 2.37, and Downside Deviation of 2.57 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

The case for AstroNova drop maybe to hold

AstroNova newest total risk alpha boosts over 0.49. AstroNova currently demonstrates below-verage downside deviation. It has Information Ratio of 0.23 and Jensen Alpha of 0.89. However, we do advice investors to further question AstroNova expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On AstroNova

Whereas some other companies within the computer hardware industry are still a little expensive, even after the recent corrections, AstroNova may offer a potential longer-term growth to private investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take over new shares of AstroNova nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been 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 AstroNova.

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 Raphi Shpitalnik do not own shares of AstroNova. Please refer to our Terms of Use for any information regarding our disclosure principles.

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