Graybug Story

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GRAY -- USA Stock  

USD 19.80  0.83  4.02%

In spite of fairly fragile fundamental drivers, Graybug Vision may actually be approaching a critical reversion point that can send shares even higher in February 2021. Will investors continue to hold, or should we expect a sell-off?
Published over a month ago
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Does Graybug Vision (NASDAQ:GRAY) have strong fundamental drivers based on the current rise?
Graybug Vision is OVERVALUED at 29.91 per share with modest projections ahead. Graybug Vision is somewhat reliable given 1 month investment horizon. Graybug Vision holds Efficiency (Sharpe) Ratio of 0.18, which attests that the entity had 0.18% of return per unit of standard deviation over the last month. Our philosophy in determining the risk of a stock is to use both market data as well as company specific technical data. We have analyzed twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.86% are justified by taking the suggested risk. Use Graybug Vision market risk adjusted performance of (1.12), and Risk Adjusted Performance of 0.1865 to evaluate company specific risk that cannot be diversified away.
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 Graybug Vision income statement, its balance sheet, and the statement of cash flows. Potential Graybug Vision investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Graybug Vision investors may use each financial statement separately, they are all related. The changes in Graybug Vision's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Graybug Vision'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 Graybug Vision fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Graybug Vision performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Graybug Vision shares is the value that is considered the true value of the share. If the intrinsic value Graybug 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 Graybug Vision.
Please read more on our fundamental analysis page.

Are Graybug Vision Earnings Expected to grow?

The future earnings power of Graybug Vision involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Graybug Vision factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Graybug Vision 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 Graybug expected earnings.

How Graybug utilizes its cash?

To perform a cash flow analysis of Graybug Vision, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Graybug Vision is receiving and how much cash it distributes out in a given period. The Graybug Vision cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Graybug Vision Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Graybug Vision reported Net Cash Flow from Operations of (28.09 Million) in 2020

Acquisition by Guerard Frederic of 200000 shares of Graybug Vision subject to Rule 16b-3

Legal trades by Graybug Vision 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:
Graybug insider trading alert for grant of employee stock option (right to buy) by Guerard Frederic, Chief Executive Officer, on 10th of December 2020. This event was filed by Graybug Vision Inc with SEC on 2020-12-10. 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 Graybug Vision Further

The current price rise of Graybug Vision may raise some interest from investors. The stock closed today at a share price of 35.00 on very low momentum in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 10.11. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Graybug Vision partners.

Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Graybug suggests not a very effective usage of assets in January.

Current Assets
36.3 M
Current Assets36.34 Million87.5
Assets Non Current5.19 Million12.5

Will Graybug Vision current rise continue?

The value at risk is down to -10.38 as of today. Graybug Vision is displaying above-average volatility over the selected time horizon. Investors should scrutinize Graybug Vision independently to ensure intended market timing strategies are aligned with expectations about Graybug Vision volatility.

The Bottom Line

While many of the other players within the biotechnology industry are still a little expensive, even after the recent corrections, Graybug Vision may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Graybug Vision at this time. The Graybug Vision risk-reward trade off is not appealing enough to do any trading. 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 Graybug Vision.

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 Graybug Vision. Please refer to our Terms of Use for any information regarding our disclosure principles.

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