Inmode Stock Story

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Gabriel Shpitalnik .  Story
INMD
 Stock
  

USD 32.50  1.46  4.30%   

By Gabriel Shpitalnik
Macroaxis Story
While some baby boomers are getting worried about healthcare space, it is reasonable to digest Inmode against economic and market trends. As we have suggested previously, Inmode is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. Inmode hyperactively responds to market trends. A lot of the trends of the company stock price movements has been a demonstration of what is happening in the market overall. Sound primary indicators of the firm may indicate signs of shorter-term price drift for shareholders. The stock experiences a very aggressive trading activities.
Published over two months ago
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Is Inmode (NASDAQ:INMD) outlook positive for July?

The company's average rating is Buy from 3 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Inmode market sentiment investors' perception of the future value of Inmode. Let us look at a few aspects of Inmode technical analysis. The company has Profit Margin (PM) of 46.14 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 46.98 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.47.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Inmode. In general, we focus on analyzing Inmode stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Inmode's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Inmode's intrinsic value. In addition to deriving basic predictive indicators for Inmode, we also check how macroeconomic factors affect Inmode price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Inmode's 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 Inmode 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 Inmode. Your research has to be compared to or analyzed against Inmode's peers to derive any actionable benefits. When done correctly, Inmode'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 Inmode.

How important is Inmode's Liquidity

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

How does Inmode utilize its cash?

To perform a cash flow analysis of Inmode, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Inmode is receiving and how much cash it distributes out in a given period. The Inmode cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Inmode Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 174.88 Million

Breaking it down

Inmode has a beta of 2.2736. Let's try to break down what Inmode's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Inmode will likely underperform. The beta indicator helps investors understand whether Inmode moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Inmode deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
The big decline in price over the last few months for Inmodemay raise some interest from shareholders. The stock closed today at a share price of 23.67 on 1,452,800 in trading volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in May. However, diversifying your holdings with Inmode or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.57. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Inmode partners.

Inmode to fall back in July

Latest skewness is at 0.27. Inmode exhibits very low volatility with skewness of 0.27 and kurtosis of -0.04. However, we advise investors to further study Inmode technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Inmode'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 Inmode'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.

Inmode Implied Volatility

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

Although many other companies in the medical devices industry are either recovering or due for a correction, Inmode 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 Inmode 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 Inmode.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of Inmode. Please refer to our Terms of Use for any information regarding our disclosure principles.

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