Bionano Story

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BNGO -- USA Stock  

USD 10.02  1.17  10.46%

Bionano Genomics Book Value per Share is quite stable at the moment as compared to the past year. The company's current value of Book Value per Share is estimated at 0.30. Current Ratio is expected to rise to 1.76 this year, although the value of Average Assets will most likely fall to about 26.6 M. The underlying goal of this short thesis is to outline Bionano as an investment oportunity for February. We will inspect why recent Bionano Genomics price moves suggest a bounce in February.
Published over a month ago
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Are Bionano (NASDAQ:BNGO) institutional investors starting to hold back?
Bionano Genomics has a beta of -3.6702. Let's try to break down what Bionano's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Bionano Genomics will likely underperform. The beta indicator helps investors understand whether Bionano Genomics moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Bionano deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Bionano Genomics. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Bionano Genomics

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Bionano Genomics' 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 Bionano Genomics 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 Bionano Genomics. Your research has to be compared to or analyzed against Bionano Genomics' peers to derive any actionable benefits. When done correctly, Bionano Genomics' 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 Bionano Genomics.

How important is Bionano Genomics's Liquidity

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

How Bionano utilizes its cash?

To perform a cash flow analysis of Bionano Genomics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Bionano Genomics is receiving and how much cash it distributes out in a given period. The Bionano Genomics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Bionano Genomics 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 (28.67 Million)

Acquisition by Stewart Christopher P of 8000 shares of Bionano Genomics subject to Rule 16b-3

Legal trades by Bionano Genomics 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:
Bionano insider trading alert for grant of common stock by Stewart Christopher P, Chief Financial Officer, on 25th of January 2021. This event was filed by Bionano Genomics Inc with SEC on 2021-01-25. 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 down Bionano Genomics Indicators

The latest price rise of Bionano Genomics could raise concerns from institutional investors as the firm it trading at a share price of 8.05 on 124,360,384 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 22.08. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Bionano Genomics partners.

Margin Breakdown

EBITDA Margin(3.23)
Gross Margin0.31
Profit Margin(3.65)

A growth case for Bionano Genomics

Latest potential upside is at 46.67. Bionano Genomics is displaying above-average volatility over the selected time horizon. Investors should scrutinize Bionano Genomics independently to ensure intended market timing strategies are aligned with expectations about Bionano Genomics volatility.

Our Final Takeaway

Whereas some other entities under the diagnostics & research industry are still a bit expensive, Bionano Genomics may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe it may be a good time to exit Bionano as the risk-reward trade off is not appealing enough to hold a position. 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 Bionano Genomics.

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 Raphi Shpitalnik do not own shares of Bionano Genomics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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