AutoWeb Story

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AUTO -- USA Stock  

USD 2.59  0.16  5.82%

As many of us are excited about communication services space, it is fair to outline AutoWeb within current market trends. While the market posted solid gains today, things may not be as exiting for AutoWeb in the long run. Plenty of the changes of the company stock price movements has been a rough indication of what is happening in the market overall. The proof of persistent basic indicators of the company suggests a short-term price swing for institutional investors of AutoWeb. The upcoming quarterly report is expected on the 5th of November 2020. The stock is still going through an active upward rally.
Published over three months ago
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Will AutoWeb (NASDAQ:AUTO) price continue to rise in November?
The company's average rating is Strong Buy 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 AutoWeb market sentiment investors' perception of the future value of AutoWeb. Let us look at a few aspects of AutoWeb technical analysis. The company has Profit Margin (PM) of (10.7) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (9.77) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.1.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of AutoWeb. In general, we focus on analyzing AutoWeb stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build AutoWeb'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 AutoWeb's intrinsic value. In addition to deriving basic predictive indicators for AutoWeb, we also check how macroeconomic factors affect AutoWeb 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 AutoWeb'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 AutoWeb 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 AutoWeb. Your research has to be compared to or analyzed against AutoWeb's peers to derive any actionable benefits. When done correctly, AutoWeb'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 AutoWeb.

How does AutoWeb Stands against Peers?

Analyzing AutoWeb 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 AutoWeb 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 AutoWeb Competition Details

How AutoWeb utilizes its cash?

To perform a cash flow analysis of AutoWeb, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AutoWeb is receiving and how much cash it distributes out in a given period. The AutoWeb cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AutoWeb 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 (8.7 Million)

AutoWeb exotic insider transaction detected

Legal trades by AutoWeb 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:
AutoWeb insider trading alert for general transaction of employee stock option (right to buy) by Sadowski Michael, EVP Chief Financial Officer, on 4th of December 2020. This event was filed by Autoweb Inc with SEC on 2020-12-04. Initial filing of beneficial ownership - SEC Form 3 [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 AutoWeb Downside Variance

AutoWeb has current Downside Variance of 78.39. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
78.39
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare AutoWeb Downside Variance to its closest peers:
AUTO
FB
IQ
LN
DOYU
AUTO78.38775907061145
FB4.17
IQ7.95
LN0.72
DOYU13.77

Another 3 percent rise for AutoWeb

Total risk alpha is down to 0.64. It may entail a possible volatility slide. As of the 12th of October 2020, AutoWeb shows the Downside Deviation of 8.85, risk adjusted performance of 0.2221, and Mean Deviation of 8.23. AutoWeb 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 are able to interpolate and break down nineteen technical drivers for AutoWeb, which can be compared to its rivals. Please confirm AutoWeb variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if AutoWeb is priced correctly, providing market reflects its regular price of 4.5 per share. Given that AutoWeb has jensen alpha of 2.05, we suggest you to validate AutoWeb's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas some firms within the internet content & information industry are still a little expensive, even after the recent corrections, AutoWeb may offer a potential longer-term growth to institutional investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of AutoWeb at this time. The AutoWeb 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 AutoWeb.

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 Achuva Shats do not own shares of AutoWeb. Please refer to our Terms of Use for any information regarding our disclosure principles.

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