Aspen Story

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AZPN -- USA Stock  

USD 134.99  2.03  1.53%

As many rational traders are trying to avoid technology space, it makes sense to outline Aspen Technology a little further and understand how it stands against Kingsoft Cloud and other similar entities. We are going to inspect some of the competitive aspects of both Aspen and Kingsoft.
Published over a month ago
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Should I exit all of Kingsoft and Aspen?
By analyzing existing basic indicators between Aspen Technology and Kingsoft, 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 Kingsoft with a short position in Aspen Technology. 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. Aspen Technology has an asset utilization ratio of 107.63 percent. This suggests that the company is making $1.08 for each dollar of assets. An increasing asset utilization means that Aspen Technology 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 Aspen or Dynatrace is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Aspen Technology's Liquidity

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

Correlation Between Aspen and Dynatrace

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 Aspen Technology together with similar or unrelated positions with a negative correlation. For example, you can also add Dynatrace to your portfolio. If Dynatrace is not perfectly correlated to Aspen Technology 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 Aspen Technology 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 AZPN and DT for more information.

Payment of 187 shares by Hague John of Aspen Technology subject to Rule 16b-3

Legal trades by Aspen Technology 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:
Aspen insider trading alert for payment of common stock by Hague John, EVP Operations, on 2nd of October 2020. This event was filed by Aspen Technology Inc with SEC on 2020-10-02. 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.

Breaking it down a bit more

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 take a closer look at Aspen Technology revenue. Based on the latest financial disclosure, Aspen Technology reported 590.18 M of revenue. This is 85.52% lower than that of the Technology sector and significantly higher than that of the Software?Application industry. The revenue for all United States stocks is 93.74% higher than that of Aspen Technology. As for Kingsoft Cloud we see revenue of 3.51 B, which is much higher than that of the Software?Application

3.5 B
AZPN590.18 Million14.39
KC3.51 Billion85.61

Aspen Technology has 80 percent chance to finish below $132 next week

Aspen Technology latest variance surges over 15.58. Aspen Technology has relatively low volatility with skewness of 5.87 and kurtosis of 43.33. However, we advise all investors to independently investigate Aspen Technology to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Aspen Technology Investment

Whereas some other firms under the software?application industry are still a bit expensive, Aspen Technology may offer a potential longer-term growth to institutional investors. All things considered, as of the 25th of October 2020, our research shows that Aspen Technology is a rather very steady investment opportunity with a very low odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our present 30 days buy-sell recommendation on the company is Strong Sell.

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

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