Astronics Story

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ATRO -- USA Stock  

USD 7.99  0.12  1.52%

It looks like Ehang Holdings will continue to recover much faster as its share price surged up 3.77% today to Astronics's 4.5139%. As many of us are excited about industrials space, we will review both, Astronics and Ehang Holdings as a potential short-term opportunity. We are going to inspect some of the competitive aspects of both Astronics and Ehang.
Published over a month ago
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Will Astronics (NASDAQ:ATRO) shadow Ehang Holdings price rise?
By analyzing existing basic indicators between Astronics and Ehang, 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 Ehang with a short position in Astronics. 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. Astronics has an asset utilization ratio of 118.53 percent. This suggests that the company is making $1.19 for each dollar of assets. An increasing asset utilization means that Astronics is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Astronics or Ehang is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Astronics's Liquidity

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

Correlation Between Astronics and Ehang Holdings

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Astronics together with similar or unrelated positions with a negative correlation. For example, you can also add Ehang Holdings to your portfolio. If Ehang Holdings is not perfectly correlated to Astronics it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Astronics for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between ATRO and EH for more information.

Note

Are you currently holding both Astronics and Ehang Holdings in your portfolio? Please note if you are using this as a pair-trade strategy between Astronics and Ehang Holdings, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Calaway Tonit M of 5600 shares of Astronics subject to Rule 16b-3

Legal trades by Astronics 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:
Astronics insider trading alert for exercise of restricted stock unit by Calaway Tonit M, the corporate stakeholder, on 31st of August 2020. This event was filed by Astronics Corp with SEC on 2020-08-31. 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.

A Deeper look at Astronics

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 go over Astronics revenue. Based on the latest financial disclosure, Astronics reported 722.11 M of revenue. This is 79.36% lower than that of the Industrials sector and 93.96% lower than that of the Aerospace & Defense industry. The revenue for all United States stocks is 92.35% higher than that of Astronics. As for Ehang Holdings we see revenue of 106.57 M, which is 99.11% lower than that of the Aerospace & Defense

Astronics722.11 Million
Sector3.5 Billion
Ehang106.57 Million
722.1 M
Astronics
3.5 B
Sector
Ehang

Our perspective of the latest Astronics thrive

Potential upside is down to 11.9. It may entail a possible volatility slide. Astronics is displaying above-average volatility over the selected time horizon. Investors should scrutinize Astronics independently to ensure intended market timing strategies are aligned with expectations about Astronics volatility.

Our Final Take On Astronics

Whereas many other companies within the aerospace & defense industry are still a little expensive, even after the recent corrections, Astronics may offer a potential longer-term growth to institutional investors. To conclude, as of the 31st of July 2020, our current 30 days buy-sell recommendation on the company is Strong Sell. We believe Astronics is overvalued with below average probability of distress for the next two years.

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

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