American Story

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ARA -- USA Stock  

USD 11.47  0.01  0.09%

While some traders are getting carried away by overanalyzing healthcare space, it is reasonable to go over American Renal Associates against current market trends. We are going to address the reasons why we are still confident in anticipation of a recovery. The returns on the market and returns on American Renal appear slightly correlated for the last few months. The appearance of strong forward indicators of the company suggests a short-term price swing for investors of American. The upcoming quarterly report is expected on the 3rd of November 2020. The stock is undergoing an active upward rally.
Published over three months ago
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Should I shadow American Renal Associates (NYSE:ARA) investors?
American Renal Assoc's average rating is Hold from 3 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on American Renal market sentiment investors' perception of the future value of American. Let us look at a few aspects of American technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of American Renal Associates. In general, we focus on analyzing American Renal stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build American Renal's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of American Renal's intrinsic value. In addition to deriving basic predictive indicators for American Renal, we also check how macroeconomic factors affect American Renal price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of American Renal's stock 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. Please use the tools below to analyze the current value of American Renal in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as American Renal. Your research has to be compared to or analyzed against American Renal's peers to derive any actionable benefits. When done correctly, American Renal's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in American Renal Assoc.

How does American Stands against Peers?

Analyzing American Renal competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to American Renal across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out American Renal Competition Details

How American utilizes its cash?

To perform a cash flow analysis of American Renal, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash American Renal is receiving and how much cash it distributes out in a given period. The American Renal cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. American Renal Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 34.94 Million

Payment of 2588 shares by Don Williamson of American Renal subject to Rule 16b-3

Legal trades by American Renal 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:
American insider trading alert for payment of common stock by Don Williamson, EVP Chief Operating Officer, on 21st of September 2020. This event was filed by American Renal Associates with SEC on 2020-09-21. Statement of changes in beneficial ownership - SEC Form 4. Don Williamson currently serves as chief operating officer, executive vice president of American Renal Assoc [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.

Closer look at American Renal Semi Variance

American Renal Associates has current Semi Variance of 6.32. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.

Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Variance 
 = 
SUM(RET DEV)2 
N(ZERO) 
 = 
6.32
SUM = Summation notation
RET DEV = Actual return deviation over selected period
N(ZERO) = Number of points with returns less than zero
Let's now compare American Renal Semi Variance to its closest peers:
ARA
GH
A
CO
DXCM
ARA6.320134994695232
GH4.4
A1.48
CO4.59
DXCM7.23

Our perspective of the current American Renal rise

Current Risk Adjusted Performance is up to 0.05. Price may slip again. American Renal Associates currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. However, we do advice investors to further question American Renal Associates expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Whereas many of the other players under the diagnostics & research industry are still a bit expensive, American Renal may offer a potential longer-term growth to investors. To conclude, as of the 4th of October 2020, we see that American Renal follows the market closely. The company is overvalued with below average probability of distress within the next 24 months. Our primary 30 days buy-or-sell advice 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 Gabriel Shpitalnik do not own shares of American Renal Associates. Please refer to our Terms of Use for any information regarding our disclosure principles.

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