Altimmune (NASDAQ:ALT) high volatility trend continues
 | By Ellen Johnson | Macroaxis Story |
Altimmune is generating 3.1337% of daily returns assuming volatility of 10.703% on return distribution over 60 days investment horizon. While some of us are excited about ishares space, it makes sense to review Altimmune in greater detail to make a better estimate of its risk and reward. We will go over a few points Altimmune private investors should remember regarding its volatility.
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Reviewed by Vlad Skutelnik
This firm has 1.68 M in debt with debt to equity (D/E) ratio of 0.04, which may show that Altimmune is not taking advantage of profits from borrowing. The company has a current ratio of 6.43, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Altimmune holds a performance score of 20 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of -1.0734, which signifies a somewhat significant risk relative to the market. Let's try to break down what Altimmune's beta means in this case. As the market becomes more bullish, returns on owning Altimmune are expected to decrease slowly. On the other hand, during market turmoil, Altimmune is expected to outperform it slightly. Although it is essential to pay attention to Altimmune historical returns, it is also good to be reasonable about what you can do with equity current trending patterns. Our philosophy towards foreseeing future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Altimmune expected return of 3.13 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Altimmune variance, value at risk, as well as the relationship between the Value At Risk and skewness to analyze future returns on Altimmune. Volatility is a rate at which the price of Altimmune or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Altimmune may increase or decrease. In other words, similar to Altimmune's beta indicator, it measures the risk of Altimmune and helps estimate the fluctuations that may happen in a short period of time. So if prices of Altimmune fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Altimmune's Liquidity
Altimmune financial leverage refers to using borrowed capital as a funding source to finance Altimmune ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Altimmune 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 Altimmune'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 Altimmune'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 Altimmune's total debt and its cash.
Altimmune Gross Profit
Altimmune Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Altimmune previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Altimmune Gross Profit growth over the last 10 years. Please check Altimmune's gross profit and other fundamental indicators for more details.
Altimmune Volatility Drivers
Altimmune unsystematic risk is unique to Altimmune and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Altimmune you can also buy Cabaletta Bio. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Altimmune important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Altimmune income statement and balance sheet. Here are more details about Altimmune volatility.Click cells to compare fundamentals
An Additional Perspective On Altimmune
The newest price gain of Altimmune could raise concerns from private investors as the firm closed today at a share price of 22.0 on very low momentum in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 10.7. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Altimmune partners.
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