Avid Bioservices Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;padding-top: 25px;;'>AB</div>
Macroaxis News
  
By Raphi Shpitalnik
Allthough quite unfluctuating forward indicators, Avid Bioservices disclosed solid returns over the last few months and may actually be approaching a breakup point. We estimate Avid Bioservices as currently undervalued. The real value is approaching 7.92 per share.
Does Avid Bioservices have money to sustain growth?

We provide buy or sell advice to complement the prevailing expert consensus on Avid Bioservices. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. Avid Bioservices dividends can provide clues to the current value of the stock. The firm is not projected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders. Lets now take a look at Avid Bioservices Beta. In accordance with recently published financial statements Avid Bioservices has Beta of 2.23. This is 159.3% higher than that of the Healthcare sector, and 60.43% higher than that of Biotechnology industry, The Beta for all stocks is 1586.67% lower than Avid Bioservices.

Avid Bioservices Ownership Breakdown

About 58.0% of the company shares are held by institutions such as insurance companies. Insiders ownership of Avid Bioservices refers to the amount of Avid Bioservices equity owned by Avid Bioservices officers, directors, relatives of the members of leadership team, or anyone who has access to private information before it's made available to the public.

Are Avid Bioservices Earnings Expected to grow?

The future earnings power of Avid Bioservices involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Avid Bioservices factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Avid Bioservices 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.
EPSEstimate Date
Quarterly Estimate-0.033rd of September 2020
The above chart is showing Avid Bioservices normalized analysts earnings estimates for actual as well as future EPS values taken as an average expert opinion over the last few years and projected forward

How important is Avid Bioservices's Liquidity

Avid Bioservices financial leverage refers to using borrowed capital as a funding source to finance Avid Bioservices ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Avid Bioservices financial leverage is typically calculated by taking the company's all of the 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. The map below shows the current breakdown between Avid Bioservices's total debt and its cash.

Avid Bioservices Revenue

Avid Bioservices revenue growth is one of the most critical measures in evaluating the company. The revenue growth rate is calculated simply by comparing Avid Bioservices previous period's revenue with its current period's revenue. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's sales between two periods. Here we show Avid Bioservices revenue growth over the last 10 years.

  Avid Bioservices Revenues

Acquisition or disposition of Avid Bioservices securities by Daniel Hart

Legal trades by Avid Bioservices 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:
Avid Bioservices insider trading alert for acquisition or disposition of common stock by Daniel Hart, Chief Financial Officer, on 2nd of July 2020. This event was filed by Avid Bioservices Inc with SEC on 2020-07-02. 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 down Avid Bioservices Indicators

Avid Bioservices maintains current valuation of 300.14 m. This firm has a beta of 0.6681. Let's try to break down what Avid Bioservices'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, Avid Bioservices will likely underperform. The beta indicator helps investors understand whether Avid Bioservices 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 Avid Bioservices deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Avid Bioservices holds a total of fifty-six million two hundred fourty thousand outstanding shares. Over half of Avid Bioservices outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Avid Bioservices. Please watch out for any change in the institutional holdings of Avid Bioservices as this could mean something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the the firm is less than the current market value, you may not be able to make money on it. Avid Bioservices Average Assets is quite stable at the moment. Also, Avid Bioservices Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.

Our take on today Avid Bioservices surge

Jensen alpha is down to 0.32. It may entail possible volatility slide. Avid Bioservices exhibits above average semi-deviation of 4.34 for selected time horizon. We encourage investors to investigate Avid Bioservices individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Avid Bioservices future systematic risk.

Our Bottom Line On Avid Bioservices

While many of the other players under biotechnology industry are still a little expensive, even after the recent corrections, Avid Bioservices may offer a potential longer-term growth to investors. To conclude, as of 30th of June 2020, we believe that at this point Avid Bioservices is undervalued with high probability of distress within the next 2 years. Our ongoing Buy/Hold/Sell recommendation on the entity is Cautious Hold. With somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take over new shares of Avid Bioservices or short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Bioservices.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
This story should be regarded as informational only and should not be considered as 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 Avid Bioservices. Please refer to our Terms of Use for any information regarding our disclosure principles.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page