G-III Story

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GIII -- USA Stock  

USD 31.06  0.32  1.04%

Macroaxis News
By Raphi Shpitalnik  
Macroaxis Story
It seems as G-III Apparel will continue to recover much faster as its share price surged up 3.38% today. The company current daily volatility is 2.78 percent, with a beta of 1.47 and an alpha of 0.36 over DOW. As many of us are excited about apparel, it is fair to concentrate on G-III Apparel Gp. I will address the reasons why this entity does not get much respect from stockholders under the current market uncertainty.
Published over three weeks ago
View all stories for G-III Apparel | View All Stories
What does a current G III Apparel volatility drop mean for stockholders?
G-III Apparel Gp currently holds roughly 149.74 M in cash with 301.62 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.1.
Our investment recommendation module can be used to complement G-III Apparel Gp trade recommendations provided by average analyst sentiment. It analyzes the company's potential to grow using fundamental, technical, data market data available at this moment.
Investing in G-III Apparel, 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 G-III Apparel 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 G-III Apparel'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 G-III Apparel in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as G-III Apparel. Your research has to be compared to or analyzed against G-III Apparel's peers to derive any actionable benefits. When done correctly, G-III Apparel'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 G-III Apparel Gp.

How important is G-III Apparel's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for G-III Apparel, but it might be worth checking our own buy vs. sell analysis

G-III Apparel Correlation with Peers

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

Sale by Wayne Miller of 65783 shares of G-III Apparel

Legal trades by G-III Apparel 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:
G-III insider trading alert for sale of common stock par value $.01 per share by Wayne Miller, Chief Operating Officer, on 24th of March 2021. This event was filed by G Iii Apparel Group Ltd with SEC on 2021-03-24. 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 the case for G-III Apparel

G-III Apparel appears to be not too volatile, given 1 month investment horizon. G-III Apparel Gp holds Efficiency (Sharpe) Ratio of 0.23, which attests that the company had 0.23% of return per unit of risk over the last month. Our approach into determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing G-III Apparel Gp technical indicators you can at this moment evaluate if the expected return of 0.64% is justified by implied risk. Please utilize G-III Apparel downside deviation of 2.2, and Semi Deviation of 1.86 to validate if our risk estimates are consistent with your expectations.
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Will G-III Apparel growth be viable after the rise?

The information ratio is down to 0.15 as of today. G-III Apparel Gp currently demonstrates below-average downside deviation. It has Information Ratio of 0.15 and Jensen Alpha of 0.36. However, we advise investors to further question G-III Apparel Gp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure G-III Apparel'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 G-III Apparel'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 Conclusion on G-III Apparel

While some other companies within the apparel retail industry are still a little expensive, even after the recent corrections, G-III Apparel may offer a potential longer-term growth to stockholders. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of G-III nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 G-III Apparel.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
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 G-III Apparel Gp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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