EGain Story

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EGAN -- USA Stock  

USD 13.25  0.19  1.45%

Let's try to outline what's happening with EGain amid unprecedented political, and economic uncertainty. EGain is currently traded for 14.05. The entity has historical hype elasticity of -0.26. The average price elasticity to hype of competition is about -0.32. The firm is forecasted to decline in value after the next headline, with the price expected to drop to 13.79. The average volatility of media hype impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -1.85%, whereas the daily expected return is currently at 0.65 percent. The volatility of related hype on EGain is about 709.88% with expected price after next announcement by competition of 13.73 Given the investment horizon of 30 days, the next forecasted press release will be in about 6 days.
Published over three weeks ago
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Is EGain (NASDAQ:EGAN) gaining more confidence from institutional investors?
On a scale of 0 to 100, EGain holds a performance score of 13. The firm shows a Beta (market volatility) of -0.3592, which means possible diversification benefits within a given portfolio. Let's try to break down what EGain's beta means in this case. As returns on the market increase, returns on owning EGain are expected to decrease at a much lower rate. During the bear market, EGain is likely to outperform the market. Although it is vital to follow EGain historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The approach into predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for EGain, which you can use to evaluate the performance of the firm. Please utilizes EGain value at risk, daily balance of power, and the relationship between the total risk alpha and expected short fall to make a quick decision on whether EGain price patterns will revert.
The successful prediction of EGain stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as EGain, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of EGain based on EGain hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to EGain's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to EGain's related companies.

Use Technical Analysis to project EGain expected Price

EGain technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of EGain technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of EGain trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How EGain utilizes its cash?

To perform a cash flow analysis of EGain, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash EGain is receiving and how much cash it distributes out in a given period. The EGain cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. EGain Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 15.17 Million

Exercise or conversion by Eric Smit of 3000 shares of EGain subject to Rule 16b-3

Legal trades by EGain 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:
EGain insider trading alert for exercise of employee stock option (right to buy) by Eric Smit, Chief Financial Officer, on 17th of September 2020. This event was filed by Egain Corp with SEC on 2020-09-17. 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.

Breaking it down a bit more

The latest price rise of EGain could raise concerns from institutional investors as the firm closed today at a share price of 13.4 on 277,601 in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.45. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from EGain partners.

Deferred Revenue Breakdown

EGain Deferred Revenue yearly trend continues to be quite stable with very little volatility. Deferred Revenue may rise above about 45.3 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. EGain Deferred Revenue is quite stable at the moment as compared to the past year. The company's current value of Deferred Revenue is estimated at 45.28 Million
201313.71 Million
201415.81 Million
201515.72 Million
201623.22 Million
201726.2 Million
201836.49 Million
201941.96 Million
202045.28 Million

Will EGain growth be reliable after the rise?

Latest total risk alpha is at 0.13. EGain shows above-average downside volatility for the selected time horizon. We advise investors to inspect EGain further and ensure that all market timing and asset allocation strategies are consistent with the estimation of EGain future alpha.

Our Takeaway on EGain Investment

Whereas few other entities under the software?application industry are still a bit expensive, EGain may offer a potential longer-term growth to institutional investors. All things considered, as of the 2nd of September 2020, our research shows that EGain is a rather somewhat reliable investment opportunity with a very small chance of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our current 30 days Buy-Hold-Sell recommendation on the company is Cautious 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 Raphi Shpitalnik do not own shares of EGain. Please refer to our Terms of Use for any information regarding our disclosure principles.

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