Applied Story

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AMTI -- USA Stock  

USD 40.06  1.78  4.25%

The upcoming quarterly report is expected on the 18th of June 2021. The stock goes through an active upward rally. As many baby boomers are still indifferent towards healthcare space, it makes sense to concentrate on Applied Molecular Transport as a unique choice for millenniums. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over two weeks ago
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Continue to hold Applied (NASDAQ:AMTI) based on its current debt obligations?
The firm currently holds 82 K in liabilities with Debt to Equity (D/E) ratio of 0.0, which may suggest the company is not taking enough advantage from borrowing. Applied Molecular has a current ratio of 2.73, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Applied Molecular financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Applied Molecular, including all of Applied Molecular's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Applied Molecular assets, the company is considered highly leveraged. Understanding the composition and structure of overall Applied Molecular debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Applied Total Debt

Applied Molecular liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Applied Molecular has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Applied Molecular balance sheet include debt obligations and money owed to different Applied Molecular vendors, workers, and loan providers. Below is the chart of Applied main long-term debt accounts currently reported on its balance sheet.
You can use Applied Molecular Transport financial leverage analysis tool to get a better grip on understanding its financial position

How important is Applied Molecular's Liquidity

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

Purchase by Lamond David of 25000 shares of Applied Molecular

Legal trades by Applied Molecular 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:
Applied insider trading alert for perchase of common stock by Lamond David, the corporate stakeholder, on 7th of April 2021. This event was filed by Applied Molecular Transpo with SEC on 2021-04-07. 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.

Detailed Perspective On Applied Molecular

Net Loss for the year was (38.35 M) with loss before overhead, payroll, taxes, and interest of (14.23 M).

Asset Breakdown

Assets Non Current
105 M
Current Assets
Total Assets112.76 Million
Current Assets105.04 Million
Assets Non Current7.71 Million

Our perspective of the current Applied Molecular rise

Current maximum drawdown is at 35.2.
As of the 4th of April, Applied Molecular shows the Downside Deviation of 7.16, risk adjusted performance of 0.1354, and Mean Deviation of 5.52. Applied Molecular technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Applied Molecular Transport, which can be compared to its rivals. Please confirm Applied Molecular coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Applied Molecular is priced correctly, providing market reflects its regular price of 63.57 per share. Given that Applied Molecular has jensen alpha of 1.25, we suggest you to validate Applied Molecular Transport's prevailing market performance to make sure the company can sustain itself at a future point.

While other companies under the biotechnology industry are still a bit expensive, Applied Molecular may offer a potential longer-term growth to stockholders. To conclude, as of the 4th of April 2021, we see that Applied Molecular slowly supersedes the market. The company is fairly valued with below average probability of distress within the next 24 months. Our primary 30 days buy-sell recommendation on the company is Cautious Hold.

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 Applied Molecular Transport. Please refer to our Terms of Use for any information regarding our disclosure principles.

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