Actuant Story

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EPAC -- USA Stock  

USD 19.49  0.15  0.76%

It appears Actuant Corp will continue to recover much faster as its share price surged up 0.05% today. This firm's current daily volatility is 2.13 percent, with a beta of 0.09 and an alpha of 0.18 over DOW. While some of us are getting more passionate about machinery, it makes sense to go over Actuant Corp in greater detail to make a better estimate of its volatility. We will evaluate why recent Actuant Corp price moves suggest a bounce in October.
Published over two weeks ago
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Will Actuant Corp (NYSE:EPAC) volatility rise before October
Actuant Corp currently holds roughly 163.6 M in cash with 36.95 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.74. Actuant Corp has performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.0879, which signifies not very significant fluctuations relative to the market. Let's try to break down what Actuant's beta means in this case. As returns on the market increase, Actuant Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Actuant Corp will be expected to be smaller as well. Although it is extremely important to respect Actuant Corp historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing 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. By analyzing Actuant Corp technical indicators, you can presently evaluate if the expected return of 0.12% will be sustainable into the future. Actuant Corp right now shows a risk of 2.13%. Please confirm Actuant Corp jensen alpha, potential upside, skewness, as well as the relationship between the maximum drawdown and semi variance to decide if Actuant Corp will be following its price patterns.
Investing in Actuant 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 Actuant 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.

How important is Actuant Corp's Liquidity

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

How Actuant utilizes its cash?

To perform a cash flow analysis of Actuant Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Actuant Corp is receiving and how much cash it distributes out in a given period. The Actuant Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Actuant 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 48.46 Million

Actuant Corp Correlation with Peers

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

Acquisition by Dillon Ricky T of tradable shares of Actuant Corp subject to Rule 16b-3

Legal trades by Actuant 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:
Actuant insider trading alert for grant of phantom stock by Dillon Ricky T, Executive Vice President - CFO, on 16th of October 2020. This event was filed by Enerpac Tool Group Corp with SEC on 2020-10-16. 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 down Actuant Corp Indicators

We consider Actuant Corp very steady. Actuant Corp secures Sharpe Ratio (or Efficiency) of 0.0582, which signifies that the company had 0.0582% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Actuant Corp, which you can use to evaluate future volatility of the firm. Please confirm Actuant Corp Mean Deviation of 1.7, downside deviation of 2.52, and Risk Adjusted Performance of 0.0928 to double-check if the risk estimate we provide is consistent with the expected return of 0.12%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Some Actuant technical indicators suggest correction

Expected Short fall just dropped to -1.75, may suggest upcoming price decrease. Actuant Corp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.18. However, we do advice investors to further question Actuant Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Actuant Corp Investment

Whereas many other companies under the specialty industrial machinery industry are still a bit expensive, Actuant Corp may offer a potential longer-term growth to investors. The bottom line, as of the 30th of September 2020, our research shows that Actuant Corp is a rather very steady investment opportunity with a low probability of distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our present 30 days buy-sell recommendation on the company is 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 Ellen Johnson do not own shares of Actuant Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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