Eargo Stock Story

EAR
 Stock
  

USD 2.02  0.88  77.19%   

Even with latest conflicting performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors. Eargo Inc probability of distress is over 66 percent. Will retail investors continue to be optimistic, or should we expect a sell-off in July?
Published over two months ago
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Are Eargo (NASDAQ:EAR) weak basic indicators contributing to the latest fall?

Eargo Inc secures Sharpe Ratio (or Efficiency) of -0.13, which denotes the company had -0.13% of return per unit of risk over the last 3 months. 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. Eargo Inc exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Eargo Inc mean deviation of 6.86, and Coefficient Of Variation of (714.81) to check the risk estimate we provide.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Eargo income statement, its balance sheet, and the statement of cash flows. Potential Eargo investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Eargo investors may use each financial statement separately, they are all related. The changes in Eargo's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Eargo's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Eargo fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Eargo performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Eargo shares is the value that is considered the true value of the share. If the intrinsic value of Eargo is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Eargo.
Please read more on our fundamental analysis page.

What is Eargo Asset Breakdown?

Eargo Inc reports assets on its Balance Sheet. It represents the amount of Eargo resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Eargo volatility, please check the breakdown of all its fundamentals

Are Eargo Earnings Expected to grow?

The future earnings power of Eargo involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Eargo factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Eargo stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Eargo expected earnings.

Eargo Gross Profit

Eargo Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Eargo previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Eargo Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Breaking down Eargo Indicators

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Eargo is not uncomon. Many companies such as Eargo have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Eargo is distributed among investors.

Ownership Allocation

Eargo holds a total of thirty-nine million two hundred sixty thousand outstanding shares. Over half of Eargo Inc outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Eargo. Please watch out for any change in the institutional holdings of Eargo Inc as this could mean something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.


Retail Investors
26.88%
Insiders
13.66%
Institutions
59.46%
Retail Investors26.88
Insiders13.66
Institutions59.46

Asset Utilization

One of the ways to look at asset utilization of Eargo is to check how much profit was generated for every dollar of assets it reports. Eargo Inc shows a negative utilization of assets of -25.17 percent, losing $0.25 for each dollar of assets held by the firm. Inadequate asset utilization denotes the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Eargo Inc shows how discouraging it operates for each dollar spent on its assets.


Current Assets
136.8 M
Current Assets136.84 Million87.78
Assets Non Current16.77 Million10.76
Goodwill2.29 Million1.47

Will Eargo fall impact its fundamentals?

The information ratio is down to -0.13 as of today. Eargo Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Eargo Inc independently to ensure intended market timing strategies are aligned with expectations about Eargo volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eargo'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 Eargo'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.

Eargo Implied Volatility

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

Our Conclusion on Eargo

While some firms in the medical devices industry are either recovering or due for a correction, Eargo may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Eargo as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Eargo.

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 Vlad Skutelnik do not own shares of Eargo Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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