Avid Technology Story

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AVID -- USA Stock  

USD 8.22  0.47  6.06%

It looks as if Avid Technology will continue to recover much faster as its share price surged up 0.12% today. The entity's current daily volatility is 4.18 percent, with a beta of 0.2 and an alpha of 0.16 over DOW. As many millenniums are excited about business services, it is only fair to digest Avid Technology. We will evaluate if Avid Technology shares are reasonably priced going into September.
Published over a month ago
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Is Avid Technology (NASDAQ:AVID) way too risky for millennials?
Avid Technology currently holds roughly 81.18 M in cash with 7.66 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.86. The company currently holds 286.01 M in liabilities. Avid Technology has a current ratio of 1.04, suggesting that it is in a questionable position to pay out its financial obligations when due.
Investing in Avid Technology, 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 Avid Technology 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.

How important is Avid Technology's Liquidity

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

How Avid Technology utilizes its cash?

To perform a cash flow analysis of Avid Technology, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Avid Technology is receiving and how much cash it distributes out in a given period. The Avid Technology cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Avid Technology 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 19.64 Million

Avid Technology Correlation with Peers

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

Breaking down Avid Technology Indicators

Avid Technology appears to be slightly risky, given 1 month investment horizon. Avid Technology secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had 0.12% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Avid Technology, which you can use to evaluate future volatility of the firm. Please makes use of Avid Technology Mean Deviation of 3.42, risk adjusted performance of 0.0809, and Downside Deviation of 4.79 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Avid Technology is expecting lower volatility in September

The standard deviation is down to 4.39 as of today. Avid Technology exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Avid Technology individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Avid Technology future systematic risk.

Our Final Perspective on Avid Technology

Although some firms under the electronic gaming & multimedia industry are still a bit expensive, Avid Technology may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Avid Technology valuation and our trade advice on Avid Technology is due to the recent market swings and your selection of investing horizon. 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 Avid Technology.

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

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