Conns Stock Story

CONN
 Stock
  

USD 10.93  1.09  11.08%   

Conns Free Cash Flow is quite stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 141.93 Million. Invested Capital is expected to rise to about 2.6 B this year, although the value of Net Income Per Employee will most likely fall to (677.98) . In this article, we will outline Conns as a potential position in addition to your existing holdings. We will inspect why it could be a game-changer for Conns institutional investors.
Published over two months ago
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Conns (NASDAQ:CONN) is to drop even more in July

The company has a beta of 2.0048. Let's try to break down what Conns'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, Conns will likely underperform. The beta indicator helps investors understand whether Conns 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 Conns 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 Conns Inc. Regardless of method or technology, to accurately forecast the stock or bond 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 Conns

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

How important is Conns's Liquidity

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

How does Conns utilize its cash?

To perform a cash flow analysis of Conns, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Conns is receiving and how much cash it distributes out in a given period. The Conns cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Conns 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 190.33 Million

Sale by Brian Daly of 15000 shares of Conns

Legal trades by Conns 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:
Conns insider trading alert for sale of common stock by Brian Daly, Chief Human Resources Officer, on 21st of July 2022. This event was filed by Conns Inc with SEC on 2022-07-21. Statement of changes in beneficial ownership - SEC Form 4. Brian Daly currently serves as vice president and chief human resource officer of Conns Inc [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 a bit more

Conns Inc exhibits very low volatility with skewness of 0.18 and kurtosis of 0.2. However, we advise investors to further study Conns Inc 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 Conns' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Conns' 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.

Conns Implied Volatility

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

Returns Breakdown

Return on Investment2.56
Return on Assets0.0669
Return on Equity0.18
Return Capital0.0614
Return on Sales0.088

Is Conns showing proof of lower volatility?

Conns latest potential upside surges over 6.8. Conns Inc exhibits very low volatility with skewness of 0.18 and kurtosis of 0.2. However, we advise investors to further study Conns Inc 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 Conns' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Conns' 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.

Conns Implied Volatility

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

Whereas many other companies in the specialty retail industry are either recovering or due for a correction, Conns may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 31st of May 2022, we see that Conns hyperactively responds to market trends. The company is undervalued with below average chance of distress within the next 24 months. Our latest 90 days Buy-Hold-Sell recommendation on the company is Cautious Hold.

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 Gabriel Shpitalnik do not own shares of Conns Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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