AMSWA Stock Story


USD 19.11  0.21  1.11%   

Today we may see the proof that Doubleverify Holdings would recover slower from the latest fall as its shares fell 0.83% to Amer Software's 0.72%. As many rational traders are trying to avoid technology space, it makes sense to go over Amer Software a little further and understand how it stands against Doubleverify Holdings and other similar entities. We are going to analyze some of the competitive aspects of both AMSWA and Doubleverify.
Published over two months ago
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Is Doubleverify more volatile than Amer Software (NASDAQ:AMSWA)?

By analyzing existing basic indicators between Amer Software and Doubleverify, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Doubleverify with a short position in Amer Software. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Amer Software has an asset utilization ratio of 88.84 percent. This suggests that the company is making $0.89 for each dollar of assets. An increasing asset utilization means that Amer Software is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Amer Software's Liquidity

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

How does AMSWA utilize its cash?

To perform a cash flow analysis of Amer Software, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Amer Software is receiving and how much cash it distributes out in a given period. The Amer Software cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Amer Software Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 29.02 Million

Exercise or conversion by James Miller of 3000 shares of Amer Software subject to Rule 16b-3

Legal trades by Amer Software insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AMSWA insider trading alert for exercise of stock option by James Miller, the corporate stakeholder, on 22nd of June 2022. This event was filed by American Software Inc with SEC on 2022-06-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Outlook On Amer Software

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Amer Software revenue. Based on the latest financial disclosure, Amer Software reported 121.47 M of revenue. This is 97.02% lower than that of the Technology sector and significantly higher than that of the Software—Application industry. The revenue for all United States stocks is 98.71% higher than that of the firm. As for Doubleverify Holdings we see revenue of 332.74 M, which is much higher than that of the Software—Application

AMSWA121.47 Million
Doubleverify332.74 Million
121.5 M
332.7 M

Amer Software has a good chance to finish above $18.33 in 2 months

Current potential upside is at 4.28. Amer Software exhibits very low volatility with skewness of 0.67 and kurtosis of 0.77. However, we advise investors to further study Amer Software 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 Amer Software's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Amer Software'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.

Amer Software Implied Volatility

Amer Software's implied volatility exposes the market's sentiment of Amer Software stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Amer Software's 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 Amer Software stock will not fluctuate a lot when Amer Software's options are near their expiration.

Our Bottom Line On Amer Software

Whereas some other firms in the software—application industry are either recovering or due for a correction, AMSWA may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 8th of June 2022, we believe that at this point, Amer Software is undervalued with below average chance of distress within the next 2 years. However, our concluding buy vs. sell advice on the company is Strong Sell.

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 Vlad Skutelnik do not own shares of Amer Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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