Is Bentley (NASDAQ:BSY) outlook still optimistic?

BSY
 Stock
  

USD 31.28  0.36  1.14%   

As many of us are excited about technology space, it is fair to break down Bentley Systems Incorporated within current market trends. As we have suggested previously, Bentley Systems is beginning its slide as investors shift to be more bearish due to the increased sector volatility. Bentley Systems Inco responds to the market. A lot of the movements of the company stock price movements has been a reflection of what is happening in the market overall. Strong basic indicators of the company may suggest signs of short-term price drift for investors. Bentley Systems Inco is scheduled to announce its earnings today.
Published over a month ago
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The company's average rating is Hold 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 Bentley Systems market sentiment investors' perception of the future value of Bentley. Let us look at a few aspects of Bentley technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Bentley Systems Incorporated. In general, we focus on analyzing Bentley Systems stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Bentley Systems'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 Bentley Systems's intrinsic value. In addition to deriving basic predictive indicators for Bentley Systems, we also check how macroeconomic factors affect Bentley Systems 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 Bentley Systems' 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 Bentley Systems 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 Bentley Systems. Your research has to be compared to or analyzed against Bentley Systems' peers to derive any actionable benefits. When done correctly, Bentley Systems' 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 Bentley Systems Inco.

How important is Bentley Systems's Liquidity

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

How does Bentley utilize its cash?

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

Acquisition by Cumins Nicholas of tradable shares of Bentley Systems subject to Rule 16b-3

Legal trades by Bentley Systems 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:
Bentley insider trading alert for grant of class b common stock by Cumins Nicholas, Chief Operating Officer, on 16th of September 2022. This event was filed by Bentley Systems Inc with SEC on 2022-09-16. 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.

Closer look at Bentley Systems Standard Deviation

Bentley Systems Incorporated has current Standard Deviation of 4.01. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation 
=  
SQRT(V) 
 = 
4.01
SQRT = Square root notation
V =   Variance of Bentley Systems returns

Bentley Systems has 96 percent likelihood to slide below $40 in September

The semi deviation is down to 4.01 as of today. Bentley Systems Incorporated exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Bentley Systems Incorporated individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Bentley Systems future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bentley Systems' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bentley Systems' 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.

Bentley Systems Implied Volatility

Bentley Systems' implied volatility exposes the market's sentiment of Bentley Systems Incorporated stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bentley Systems' 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 Bentley Systems stock will not fluctuate a lot when Bentley Systems' options are near their expiration.

The Bottom Line

While some firms within the software—application industry are still a little expensive, even after the recent corrections, Bentley Systems may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take over nor trade any shares of Bentley Systems at this time. The Bentley Systems Incorporated 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 Bentley Systems.

Editorial Staff

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 Bentley Systems Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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