Should you continue to rely on Alpine Immune (USA Stocks:ALPN) management?

The healthcare sector is often a hotbed of investment activity, and Alpine Immune Sciences (NASDAQ: ALPN) is no exception. With a market valuation of $16.07 billion, this biotechnology firm has been on the radar of many investors. Despite an estimated loss of $1.5 per share expected next year, insiders seem bullish about the company's future growth. The stock has seen a 52-week high of $16.25, significantly above its 50-day moving average of $11.47. The company's real value is estimated at $17.5 billion, suggesting potential for growth. Analysts are also optimistic, with seven strong buy recommendations and an overall consensus of 'Buy'. The estimated target price ranges from $16 to $22, with a Wall Street target price of $18.29. However, investors should be aware of the high short ratio of 4.82, with 2.2 million shares shorted. This could indicate a potential risk of price volatility. Despite this, the bullish sentiment from insiders and analysts alike suggests a positive outlook for Alpine Immune Sciences. Currently, Alpine Immune Sciences' working capital is considerably stable compared to the previous year. As of November 4, 2023, the Total Assets Per Share is projected to increase to 3.44, while the Net Income Per Employee is expected to decrease to -$766.8K. This brief article will review Alpine Immune Sciences as a potential investment option for your portfolios. We will also provide insights into the future direction of Alpine Immune Sciences.
Published over six months ago
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Reviewed by Rifka Kats

Alpine Immune Sciences (NASDAQ: ALPN) is a promising player in the Biotechnology industry, with a potential upside of 5.99% and a 52-week high of $16.25. The company's stock has shown a positive price change of $1.35, with an open price of $14.72, indicating a bullish trend. However, investors should be aware of the company's high coefficient of variation at 1.6K and a standard deviation of 6.02, suggesting a high level of risk and volatility. Additionally, the company is expected to report a loss of $0.4 per share in the next quarter. Despite these risks, the Jensen Alpha of 0.512 and Treynor Ratio of 0.1334 indicate a potential for high returns relative to the risk taken.

Key Takeaways

More than 87.0% of Alpine Immune Sciences shares are held by institutions such as insurance companies. The institutional ownership of Alpine Immune Sciences refers to the portion of Alpine Immune Sciences equity owned by entities like mutual funds, pension funds, insurance companies, investment firms, foundations, or other large organizations that manage money on behalf of others. For our latest analysis of Alpine, including its current ownership diagnostics, please refer to the provided link.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Alpine Immune Sciences. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Alpine Immune

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Alpine Immune'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.

How important is Alpine Immune's Liquidity

Alpine Immune financial leverage refers to using borrowed capital as a funding source to finance Alpine Immune Sciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alpine Immune 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. Financial leverage can amplify the potential profits to Alpine Immune's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Alpine Immune's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Alpine Immune's total debt and its cash.

Going after Alpine Financials

Alpine Immune Sciences is displaying above-average volatility over the selected time horizon. Investors should scrutinize Alpine Immune Sciences independently to ensure intended market timing strategies are aligned with expectations about Alpine Immune volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alpine Immune's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alpine Immune's 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.

Returns Breakdown

Return on Investment(129.97)
Return on Assets(0.24)
Return on Equity(0.43)
Return Capital(0.37)
Return on Sales(1.97)
"Never invest in a business you cannot understand," is a well-known financial proverb that rings true when considering the future growth of Alpine Immune Sciences (NASDAQ: ALPN).
With a market capitalization of 790.67M and a healthy cash and equivalents balance of 167.86M, the company appears to be in a strong financial position. Insiders own 6.41% of the company, indicating a certain level of confidence in the company's prospects. However, the company's EPS estimates for the next quarter and current year are projected at losses of 0.4 and 1.2 respectively, suggesting that profitability may not be imminent. Despite this, Wall Street's target price for ALPN is 18.29, indicating potential upside. The company's Z Score of 32.5 also suggests a low probability of bankruptcy. Therefore, while the company's financials indicate some risk, insiders and Wall Street analysts appear bullish on Alpine Immune Sciences' future growth. .

Alpine Immune implied volatility may change after the roll up

The stock volatility of Alpine Immune Sciences may be set for a shift following the roll-up, as indicated by the recent drop in skewness to 4.47. This shift suggests a decrease in the asymmetry of the stock's return distribution, which could potentially modify the risk-reward profile for investors. Both traders and investors should closely monitor this metric, as it could hint at an impending change in the stock's implied volatility, thereby influencing investment strategies and decisions. Alpine Immune Sciences has exhibited above-average volatility over the chosen time period. Investors should thoroughly analyze Alpine Immune Sciences independently to ensure that their intended market timing strategies align with their expectations about Alpine Immune's volatility. Understanding different market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to gauge Alpine Immune's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Alpine Immune's stock price, adding stress to investors as they watch the value of their shares plummet.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, the financial outlook for Alpine Immune Sciences (ALPN) is promising. With a market value of 16.07 and a real value of 17.5, the company is showing strong potential for growth. The positive analyst consensus, with 7 strong buys and an overall recommendation to buy, further supports this view. The estimated target price ranges from 16 to 22, with an average estimated value of 18.285, suggesting a potential upside for investors. However, as with any investment, it's crucial to consider the company's fiscal year-end results in December and the valuation hype value of 15.98. All in all, ALPN is an investment opportunity that is worth considering for those looking to diversify their portfolio in the biotechnology sector. .

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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 Alpine Immune Sciences. Please refer to our Terms of Use for any information regarding our disclosure principles.

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