Audiocodes Stock Story


USD 23.44  0.62  2.72%   

The predictive indicators we use to evaluate Audiocodes help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Audiocodes. We apply different methods to arrive at the intrinsic value of Audiocodes based on widely used predictive technical indicators. In this post we will go over Audiocodes. What exactly are Audiocodes shareholders getting in June?
Published over three months ago
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Will Audiocodes (NASDAQ:AUDC) price continue slipping?

The firm shows a Beta (market volatility) of 1.1484, which signifies a somewhat significant risk relative to the market. Let's try to break down what Audiocodes's beta means in this case. Audiocodes returns are very sensitive to returns on the market. As the market goes up or down, Audiocodes is expected to follow. Even though it is essential to pay attention to Audiocodes historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Audiocodes exposes twenty-one different technical indicators, which can help you to evaluate its performance. Audiocodes has an expected return of -0.32%. Please be advised to confirm Audiocodes downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if Audiocodes performance from the past will be repeated at some point in the near future.
The successful prediction of Audiocodes stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Audiocodes, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Audiocodes based on Audiocodes hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Audiocodes's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Audiocodes's related companies.

Use Technical Analysis to project Audiocodes expected Price

Audiocodes technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Audiocodes technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Audiocodes trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Audiocodes utilize its cash?

To perform a cash flow analysis of Audiocodes, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Audiocodes is receiving and how much cash it distributes out in a given period. The Audiocodes cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Audiocodes Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 47.34 Million

Is Audiocodes valued fairly by the market?

The company reported the previous year's revenue of 241.49 M. Net Income was 34.88 M with profit before overhead, payroll, taxes, and interest of 149.82 M.

Deferred Revenue Breakdown

Audiocodes Deferred Revenue is increasing over the years with slightly volatile fluctuation. Deferred Revenue is expected to dwindle to about 43.6 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Audiocodes Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 55.13 Million
201519.36 Million
201621.1 Million
201722.15 Million
201831.19 Million
201943.37 Million
202049.42 Million
202155.13 Million
202243.6 Million

Our Audiocodes analysis suggests possible reversion in June

The market risk adjusted performance is down to -0.22 as of today. Audiocodes exhibits very low volatility with skewness of -0.04 and kurtosis of 1.17. However, we advise investors to further study Audiocodes technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Audiocodes' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Audiocodes' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Audiocodes Implied Volatility

Audiocodes' implied volatility exposes the market's sentiment of Audiocodes stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Audiocodes' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Audiocodes stock will not fluctuate a lot when Audiocodes' options are near their expiration.

Our Final Take On Audiocodes

Whereas some other firms in the communication equipment industry are either recovering or due for a correction, Audiocodes may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor trade any shares of Audiocodes at this time. The Audiocodes risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Audiocodes.

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

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