Digimarc Story

DMRC -  USA Stock  

USD 30.73  0.90  2.85%

It appears Digimarc Corp may not have a good chance to recover from the current slip as its shares fell again. Digimarc Corp current daily volatility is 4.7 percent, with a beta of 1.67 and an alpha of -0.93 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to go over Digimarc Corp based on its technical indicators. Why are we still confident in our projection for a recovery.
Published over three weeks ago
View all stories for Digimarc Corp | View All Stories
Will the current Digimarc Corp volatility rise frighten investors?
Digimarc Corp currently holds roughly 77.73 M in cash with (20.35 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.73. This firm currently holds 7.5 M in liabilities with Debt to Equity (D/E) ratio of 0.09, which may suggest Digimarc Corp is not taking enough advantage from borrowing. The company has a current ratio of 8.4, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Digimarc Corp, 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 Digimarc Corp 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 Digimarc Corp's stock 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 Digimarc Corp 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 Digimarc Corp. Your research has to be compared to or analyzed against Digimarc Corp's peers to derive any actionable benefits. When done correctly, Digimarc Corp's 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 Digimarc Corp.

How important is Digimarc Corp's Liquidity

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

How Digimarc utilizes its cash?

To perform a cash flow analysis of Digimarc Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Digimarc Corp is receiving and how much cash it distributes out in a given period. The Digimarc Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Digimarc Corp 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 (20.35 Million)

Digimarc Corp Correlation with Peers

Investors in Digimarc can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Digimarc Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Digimarc Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Digimarc 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 Digimarc for more details

Acquisition by Dadlani Sandeep of 3305 shares of Digimarc Corp subject to Rule 16b-3

Legal trades by Digimarc Corp 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:
Digimarc insider trading alert for grant of common stock by Dadlani Sandeep, the corporate stakeholder, on 7th of May 2021. This event was filed by Digimarc Corp with SEC on 2021-05-07. 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.

A Deeper Perspective

Digimarc Corp secures Sharpe Ratio (or Efficiency) of -0.15, which denotes the company had -0.15% of return per unit of risk over the last month. Macroaxis standpoint towards predicting 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. Digimarc Corp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Digimarc Corp mean deviation of 3.32, and Coefficient Of Variation of (689.66) to check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

How will Digimarc investors react to the next slip?

The market risk adjusted performance is down to -0.39 as of today. Digimarc Corp exhibits very low volatility with skewness of -0.87 and kurtosis of 2.0. However, we advise investors to further study Digimarc Corp 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 Digimarc Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Digimarc Corp's 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.

Our Final Take On Digimarc Corp

Whereas some companies in the information technology services industry are either recovering or due for a correction, Digimarc may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 12th of April 2021, our concluding 30 days recommendation on the company is Cautious Hold. We believe Digimarc Corp is overvalued with very low chance of financial distress 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 Digimarc Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com