Is Atrion (NASDAQ:ATRI) stock way too aggressive for baby boomers?

It seems as Atrion may not have a good chance to recover from the current drop as its shares fell again. The company's current daily volatility is 1.68 percent, with a beta of 0.08 and an alpha of -0.1 over DOW. As many millenniums are trying to avoid the current volatility, we are going to concentrate on Atrion a little further to understand its historical price patterns. We will cover the possibilities of making Atrion into a steady grower in December.
Published over a year ago
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Reviewed by Rifka Kats

Atrion currently holds roughly 30.67 M in cash with 37.76 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 16.77. Macroaxis provides advice on Atrion to complement and cross-verify current analyst consensus on Atrion. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in ATRION, 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 ATRION 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.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ATRION's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as ATRION. Your research has to be compared to or analyzed against ATRION's peers to derive any actionable benefits. When done correctly, ATRION's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in ATRION.

How important is ATRION's Liquidity

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

ATRION Correlation with Peers

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

A Deeper Perspective

Atrion secures Sharpe Ratio (or Efficiency) of -0.0552, which signifies that the company had -0.0552% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Atrion exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Atrion risk adjusted performance of (0.06), and Mean Deviation of 1.27 to double-check the risk estimate we provide.
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Atrion has 88 percent chance to stay above $614 in 2 months

Current coefficient of variation is at -1938.38. As of the 8th of November, Atrion shows the risk adjusted performance of (0.06), and Mean Deviation of 1.27. Atrion 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 break down and interpolate data for nineteen technical drivers for Atrion, which can be compared to its rivals. Please confirm Atrion standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Atrion is priced correctly, providing market reflects its regular price of 602.1 per share. Given that Atrion has jensen alpha of (0.1), we suggest you to validate Atrion's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Atrion

While some firms in the medical instruments & supplies industry are either recovering or due for a correction, Atrion may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 8th of November 2020, our analysis shows that Atrion barely shadows the market. The company is overvalued and projects below average chance of financial distress for the next 2 years. Our ongoing 30 days buy-or-sell advice on the company is Cautious Hold.

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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 Ellen Johnson do not own shares of ATRION. Please refer to our Terms of Use for any information regarding our disclosure principles.

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