DSP Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>DSP</div>
DSPG -- USA Stock  

USD 12.75  0.10  0.79%

With so much uncertainty about the technology space, it is fair to digest DSP Group against current market trends. As we have suggested previously, DSP is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. DSP Group follows the market closely. The returns on the market and returns on DSP appear slightly-related for the last few months. Sound technical and fundamental indicators of the firm may indicate signs of shorter-term price drift for shareholders. DSP Group is scheduled to announce its earnings today. The upcoming quarterly report is expected on the 4th of August 2020.
Published over a month ago
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Is DSP (NASDAQ:DSPG) moving to revert?
DSP Group's average rating is Buy from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on DSP market sentiment investors' perception of the future value of DSP. Let us look at a few aspects of DSP technical analysis. The company has Profit Margin (PM) of (2.2) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (5.3) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.05.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of DSP Group. In general, we focus on analyzing DSP stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build DSP's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of DSP's intrinsic value. In addition to deriving basic predictive indicators for DSP, we also check how macroeconomic factors affect DSP price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does DSP Stands against Peers?

Analyzing DSP competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to DSP across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out DSP Competition Details

How DSP utilizes its cash?

To perform a cash flow analysis of DSP, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash DSP is receiving and how much cash it distributes out in a given period. The DSP cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. DSP 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 10.47 Million

What is driving DSP Investor Appetite?

The entity has a beta of 0.6365. Let's try to break down what DSP's beta means in this case. DSP returns are very sensitive to returns on the market. As the market goes up or down, DSP is expected to follow. The beta indicator helps investors understand whether DSP 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 DSP deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The small dip in market price for the last few months could raise concerns from shareholders as the firm closed today at a share price of 14.93 on 215,916 in volume. The company directors and management did not add much value to DSP investors in June. However, diversifying your holdings with DSP Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.97. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Our perspective of the latest DSP dip

The standard deviation is down to 2.15 as of today. As of the 30th of July, DSP shows the mean deviation of 1.68. DSP Group technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes 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 DSP Group, which can be compared to its rivals. Please confirm DSP Group treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if DSP Group is priced fairly, providing market reflects its regular price of 15.14 per share. Given that DSP has jensen alpha of (0.23), we urge you to verify DSP Group's prevailing market performance to make sure the company can sustain itself at some point in the future.

Our Takeaway on DSP Investment

Although some companies in the semiconductors industry are either recovering or due for a correction, DSP may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 30th of July 2020, our research shows that DSP is a rather very steady investment opportunity with a very small odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our up-to-date 30 days Buy-Hold-Sell recommendation on the firm is Strong Hold.

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 Achuva Shats do not own shares of DSP Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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