ION Geophysical Story

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IO -- USA Stock  

USD 3.10  0.02  0.64%

Ion Geophysical Invested Capital Average is quite stable at the moment as compared to the past year. The company's current value of Invested Capital Average is estimated at 206.88 Million. Market Capitalization is expected to rise to about 113.9 M this year, although the value of Net Income Per Employee will most likely fall to (115.2 K). As many millenniums are excited about energy space, it is only fair to outline Ion Geophysical. We will check if it is still possible for Ion Geophysical to minimize net losses this year. This post is to show some fundamental factors affecting Ion Geophysical's products and services. I will also disclose how it may impact the investing outlook for Ion Geophysical in March.
Published over two weeks ago
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Ion Geophysical (NYSE:IO) continues to rise
About 27.0% of the company shares are held by company insiders. Insiders ownership of Ion Geophysical refers to the amount of Ion Geophysical equity owned by Ion Geophysical officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Ion Geophysical, including its current ownership diagnostics.

How important is ION Geophysical's Liquidity

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

How ION Geophysical utilizes its cash?

To perform a cash flow analysis of ION Geophysical, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash ION Geophysical is receiving and how much cash it distributes out in a given period. The ION Geophysical cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
ION Geophysical 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 9.4 Million

ION Geophysical exotic insider transaction detected

Legal trades by ION Geophysical 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:
ION Geophysical insider trading alert for general transaction of no securities are beneficially owned by Zhang Shaohua, the corporate stakeholder, on 26th of February 2021. This event was filed by Ion Geophysical Corp with SEC on 2021-02-26. Initial filing of beneficial ownership - SEC Form 3 [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.

What is driving ION Geophysical Investor Appetite?

The market capitalization of Ion Geophysical is $44.05 Million. Ion Geophysical secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.

Ownership Breakdown

Retail Investors
37.49%
Insiders
26.88%
Institutions
35.63%
Retail Investors37.49
Insiders26.88
Institutions35.63

Ion Geophysical implied volatility may change after the rise

Jensen alpha is down to 0.97. It may entail a possible volatility slide. Ion Geophysical exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Ion Geophysical individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Ion Geophysical future systematic risk.

Our Conclusion on Ion Geophysical

Whereas many of the other players within the oil & gas equipment & services industry are still a little expensive, even after the recent corrections, Ion Geophysical may offer a potential longer-term growth to institutional investors. Taking everything into account, as of the 13th of February 2021, our analysis shows that Ion Geophysical hyperactively responds to market trends. The company is overvalued and projects above average chance of financial distress for the next 2 years. Our ongoing 30 days buy-hold-sell recommendation on the company is Strong 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 ION Geophysical Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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