Daktronics Stock Story

DAKT -  USA Stock  

USD 4.82  0.03  0.63%

As many rational traders are trying to avoid technology space, it makes sense to review Daktronics a little further and understand how it stands against Advanced Digital and other similar entities. We are going to break down some of the competitive aspects of both Daktronics and Advanced.
Published over a month ago
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Will Daktronics (NASDAQ:DAKT) private investors shift to Advanced (NASDAQ:ADIC)?
By analyzing existing forward-looking signals between Daktronics and Advanced, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Advanced with a short position in Daktronics. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Daktronics has an asset utilization ratio of 137.34 percent. This implies that the company is making $1.37 for each dollar of assets. An increasing asset utilization means that Daktronics is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Daktronics's Liquidity

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

How does Daktronics utilize its cash?

To perform a cash flow analysis of Daktronics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Daktronics is receiving and how much cash it distributes out in a given period. The Daktronics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Daktronics Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Daktronics reported Net Cash Flow from Operations of 13.28 Million in 2021

Another setback for Daktronics private investors

Daktronics newest potential upside boosts over 3.03. Daktronics exhibits very low volatility with skewness of -2.57 and kurtosis of 13.63. However, we advise investors to further study Daktronics 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 Daktronics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Daktronics' 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.

Daktronics Implied Volatility

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

Our Final Take On Daktronics

Whereas few other entities in the computer hardware industry are either recovering or due for a correction, Daktronics may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 1st of December 2021, our primary 90 days buy-hold-sell advice on the firm is Buy. We believe Daktronics is undervalued with very low chance of bankruptcy for the next two years.

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 Daktronics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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