Cooper Story

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CTB -- USA Stock  

USD 31.09  0.17  0.54%

Cooper Tire Rubber is scheduled to announce its earnings tomorrow. Because some millenniums are getting more into consumer cyclical space, we are going to go over the feasibility of inclusion Cooper into your portfolio. I will address why investors ignored this entity since the beginning of the current current
Published over a month ago
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Should you drop your Cooper Tire (NYSE:CTB) holdings?
The company's average rating is Buy from 4 analysts. Our advice module can be used to complement Cooper Tire investment recommendation provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at the time.
What is the right price you would pay to acquire a share of Cooper Tire? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

How important is Cooper Tire's Liquidity

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

How Cooper utilizes its cash?

To perform a cash flow analysis of Cooper Tire, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cooper Tire is receiving and how much cash it distributes out in a given period. The Cooper Tire cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Cooper Tire Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 290.59 Million

Acquisition by Gerald Bialek of 3000 shares of Cooper Tire subject to Rule 16b-3

Legal trades by Cooper Tire 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:
Cooper insider trading alert for grant of common stock by Gerald Bialek, VP CFO & Treasurer, on 24th of August 2020. This event was filed by Cooper Tire Rubber Co with SEC on 2020-08-24. Statement of changes in beneficial ownership - SEC Form 4. Gerald Bialek currently serves as interim chief financial officer of Cooper Tire Rubber [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.

What is driving Cooper Tire Investor Appetite?

Earning per share calculations of Cooper Tire is based on official Zacks consensus of 4 analysts regarding Cooper Tire's future annual earnings. Given the historical accuracy of 65.04%, the future earnings per share of the company is estimated to be 0.795 with the lowest and highest values of 0.27 and 1.07, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Cooper a risky opportunity?

Let's check the volatility. Cooper is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Cooper (NYSE:CTB) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a Cooper Tire stock makes you a part-owner of that company.

Cooper Tire Rubber Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Cooper Tire Rubber. The Cooper consensus assessment is calculated by taking the average estimates from all of the analysts covering Cooper Tire

Strong Buy
2
Hold
2
Strong Buy250.0
Buy00.0
Hold250.0
Sell00.0
Strong Sell00.0

Another small slip for Cooper Tire

Coefficient of variation is down to 557.78. It may suggest a possible volatility slip. As of the 2nd of August, Cooper Tire shows the Mean Deviation of 2.51, downside deviation of 2.7, and Risk Adjusted Performance of 0.2961. Cooper Tire Rubber technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Cooper Tire Rubber, which can be compared to its rivals. Please confirm Cooper Tire Rubber maximum drawdown, and the relationship between the information ratio and downside variance to decide if Cooper Tire Rubber is priced correctly, providing market reflects its regular price of 31.06 per share. Given that Cooper Tire has jensen alpha of 0.5652, we suggest you to validate Cooper Tire Rubber's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Cooper Tire

Whereas many of the other players in the auto parts industry are either recovering or due for a correction, Cooper may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 2nd of August 2020, our overall 30 days buy-or-sell advice on the company is Strong Hold. We believe Cooper Tire is overvalued with below average probability of bankruptcy for the next two years.

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 Cooper Tire Rubber. Please refer to our Terms of Use for any information regarding our disclosure principles.

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