Avid Bioservices Stock Story


USD 19.36  0.86  4.65%   

It seems Avid Bioservices may not have a good chance to recover from the latest slide as its shares fell again. The company current daily volatility is 4.32 percent, with a beta of 1.74 and an alpha of -0.15 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to outline Avid Bioservices a little further to understand its historical price patterns. What exactly are Avid Bioservices shareholders getting in July?
Published over a month ago
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Is Avid Bioservices (NASDAQ:CDMO) stock way too aggressive for baby boomers?

Avid Bioservices currently holds roughly 149.96 M in cash with 26.71 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.43.
Our trade advice tool can cross-verify current analyst consensus on Avid Bioservices and to analyze the company potential to grow in the current economic cycle.
Investing in Avid Bioservices, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Avid Bioservices along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Avid Bioservices' 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 Avid Bioservices 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 Avid Bioservices. Your research has to be compared to or analyzed against Avid Bioservices' peers to derive any actionable benefits. When done correctly, Avid Bioservices' 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 Avid Bioservices.

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 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 Avid Bioservices's total debt and its cash.

How does Avid Bioservices utilize its cash?

To perform a cash flow analysis of Avid Bioservices, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Avid Bioservices is receiving and how much cash it distributes out in a given period. The Avid Bioservices cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Avid Bioservices 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 10.21 Million

Avid Bioservices Correlation with Peers

Investors in Avid Bioservices can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Avid Bioservices. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Avid Bioservices and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Avid Bioservices is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Avid Bioservices for more details

Exercise or conversion by Green Nicholas Stewart of 37500 shares of Avid Bioservices subject to Rule 16b-3

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 exercise of restricted stock units by Green Nicholas Stewart, President & CEO, on 2nd of August 2022. This event was filed by Avid Bioservices Inc with SEC on 2022-08-02. 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

Avid Bioservices secures Sharpe Ratio (or Efficiency) of -0.0884, which signifies that the company had -0.0884% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Avid Bioservices exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Avid Bioservices risk adjusted performance of (0.14), and Mean Deviation of 3.45 to double-check the risk estimate we provide.

Will Avid Bioservices institutional investors exit after the slide?

The value at risk is down to -5.75 as of today. Avid Bioservices exhibits very low volatility with skewness of 0.16 and kurtosis of -0.39. However, we advise investors to further study Avid Bioservices technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Avid Bioservices' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Avid Bioservices' 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.

Avid Bioservices Implied Volatility

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

Our Conclusion on Avid Bioservices

Whereas many of the other players in the biotechnology industry are either recovering or due for a correction, Avid Bioservices may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Avid Bioservices nor trade 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.

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

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