Barnes Noble appears to be somewhat reliable, given 3 months investment horizon.
Barnes Noble Education secures Sharpe Ratio (or Efficiency) of 0.0786, which signifies that the company had 0.0786% of return per unit of risk over the last 3 months. 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-six
technical indicators for Barnes Noble Education, which you can use to evaluate the future volatility of the firm. Please makes use of Barnes Noble's Mean Deviation of 2.85,
downside deviation of 3.6, and Risk Adjusted Performance of 0.0707 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Barnes Noble income statement, its balance sheet, and the statement of cash flows. Potential Barnes Noble investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Barnes Noble investors may use each financial statement separately, they are all related. The changes in Barnes Noble's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Barnes Noble's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Barnes Noble
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Barnes Noble performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Barnes Noble shares is the value that is considered the true value of the share. If
the intrinsic value of Barnes is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Barnes Noble. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Barnes Noble on a daily basis if you are holding a position in it. Barnes Noble is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Barnes Noble stock to be traded above the $1 level to remain listed. If Barnes Noble stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How effective is Barnes Noble in utilizing its assets?
Barnes Noble Education reports assets on its Balance Sheet. It represents the amount of Barnes resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Barnes Noble aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Other Specialty Retail space. To get a better handle on how balance sheet or income statements item affect Barnes volatility, please check the breakdown of all its
fundamentals.
Are Barnes Noble Earnings Expected to grow?
The
future earnings power of Barnes Noble involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Barnes Noble factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Barnes Noble
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Barnes
expected earnings.
Barnes Noble Gross Profit
Barnes Noble Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Barnes Noble previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Barnes Noble Gross Profit growth over the last 10 years. Please check Barnes Noble's
gross profit and other
fundamental indicators for more details.
What is driving Barnes Noble Investor Appetite?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Barnes Noble is not uncomon. Institutional investor usually refers to an organization that invests money in Barnes Noble on behalf of clients or other money managers. Buying and selling of large positions of Barnes Noble stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Barnes Noble stock. Let's take a look at how the ownership of Barnes is distributed among investors.
Ownership Allocation
Barnes Noble holds a total of fifty-one million three hundred eighty thousand
outstanding shares. The majority of Barnes Noble Education
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Barnes Noble Education to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Barnes Noble. Please pay attention to any change in the institutional holdings of Barnes Noble Education as this could imply that something significant has changed or about to change at the company. Also note that nearly five hundred thirteen thousand eight hundred invesors are currently shorting Barnes Noble expressing very little confidence in its
future performance.
| Insiders27.38% | Institutions74.11% |
| Retail Investors | -1.49 |
| Insiders | 27.38 |
| Institutions | 74.11 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Barnes Noble has an asset utilization ratio of 133.43 percent. This indicates that the company is making $1.33 for each dollar of assets. An increasing asset utilization means that Barnes Noble Education is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets498.6 M | Assets Non Current612 M | Goodwill334.8 M | |
| Current Assets | 498.57 Million | 34.17 |
| Assets Non Current | 612.01 Million | 41.95 |
| Goodwill | 334.83 Million | 22.95 |
| Tax Assets | 13.51 Million | 0.93 |
Our take on today Barnes Noble surge
Latest jensen alpha is at 0.37. Barnes Noble Education shows above-average downside volatility for the selected time horizon. We advise investors to inspect Barnes Noble Education further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Barnes Noble future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Barnes Noble's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Barnes Noble's 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.
Barnes Noble Implied Volatility
Barnes Noble's implied volatility exposes the market's sentiment of Barnes Noble Education stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Barnes Noble's 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 Barnes Noble stock will not fluctuate a lot when Barnes Noble's options are near their expiration.
Our Final Take On Barnes Noble
Although some other companies within the specialty retail industry are still a little expensive, even after the recent corrections, Barnes Noble may offer a potential longer-term growth to shareholders. To conclude, as of the 29th of November 2021, our latest 90 days 'Buy-vs-Sell' recommendation on the firm is
Strong Hold. We believe Barnes Noble is
undervalued with
below average chance of distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Barnes Noble Education. Please refer to our
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