Aptevo Story

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APVO -- USA Stock  

USD 7.85  0.35  4.67%

It seems Aptevo Therapeutics will continue to recover much faster as its share price surged up 7.85% today. Aptevo Therapeutics's current daily volatility is 8.82 percent, with a beta of 1.16 and an alpha of 0.15 over DOW. As many investors are getting excited about pharmaceutical products, it is fair to outline Aptevo Therapeutics. I will address the reasons why this entity does not get much respect from institutional investors under the current market uncertainty.
Published over a month ago
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Is Aptevo Therapeutics (NASDAQ:APVO) a new disruptor?
Aptevo Therapeutics currently holds roughly 12.26 M in cash with (39.71 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.79. Aptevo Therapeutics holds a performance score of 8 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 1.1626, which signifies a somewhat significant risk relative to the market. Let's try to break down what Aptevo's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Aptevo Therapeutics will likely underperform. Although it is vital to follow Aptevo Therapeutics historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy towards foreseeing future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Aptevo Therapeutics expected return of 1.03 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Aptevo Therapeutics value at risk, as well as the relationship between the skewness and day median price to analyze future returns on Aptevo Therapeutics.
Investing in Aptevo Therapeutics, 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 Aptevo Therapeutics 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.

How important is Aptevo Therapeutics's Liquidity

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

How Aptevo utilizes its cash?

To perform a cash flow analysis of Aptevo Therapeutics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Aptevo Therapeutics is receiving and how much cash it distributes out in a given period. The Aptevo Therapeutics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Aptevo Therapeutics Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (45.73 Million)

Aptevo Therapeutics Correlation with Peers

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

Acquisition by Gross Jane A of 2140 shares of Aptevo Therapeutics subject to Rule 16b-3

Legal trades by Aptevo Therapeutics 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:
Aptevo insider trading alert for grant of stock option (right to buy) by Gross Jane A, SVP & Chief Scientific Officer, on 31st of July 2020. This event was filed by Aptevo Therapeutics Inc with SEC on 2020-07-31. 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 angle On Aptevo Therapeutics

Aptevo Therapeutics is slightly risky given 1 month investment horizon. Aptevo Therapeutics secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had 0.12% of return per unit of risk over the last month. Our standpoint towards foreseeing the risk of a stock is to use both market data as well as company specific technical data. We were able to interpolate and analyze data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.03% are justified by taking the suggested risk. Use Aptevo Therapeutics Risk Adjusted Performance of 0.0906, downside deviation of 5.34, and Mean Deviation of 5.2 to evaluate company specific risk that cannot be diversified away.
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Another 3 percent rise for Aptevo Therapeutics

The downside variance is down to 28.48 as of today. As of the 15th of August 2020, Aptevo Therapeutics shows the Downside Deviation of 5.34, mean deviation of 5.2, and Risk Adjusted Performance of 0.0906. Aptevo Therapeutics 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 Aptevo Therapeutics, which can be compared to its rivals. Please confirm Aptevo Therapeutics variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Aptevo Therapeutics is priced correctly, providing market reflects its regular price of 7.97 per share. Given that Aptevo Therapeutics has jensen alpha of 0.1488, we suggest you to validate Aptevo Therapeutics's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Aptevo Therapeutics

Whereas many of the other players under the biotechnology industry are still a bit expensive, Aptevo Therapeutics may offer a potential longer-term growth to institutional investors. Taking everything into account, as of the 15th of August 2020, we believe that at this point, Aptevo Therapeutics is slightly risky with below average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our primary 30 days advice on the company is Sell.

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 Aptevo Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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